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U.S. Healthcare Sector Analysis

UpdatedMay 23, 2026
DataAggregated Company Financials
Companies1413
  • 7D3.1%
  • 3M-2.8%
  • 1Y18.2%
  • YTD-3.1%

Over the last 7 days, the Healthcare industry has risen 3.1%, driven by gains from Eli Lilly of 6.0%. During this same period, the HCA Healthcare underperformed, falling 6.8%. This takes the industry's 12 month performance to a gain of 18%. Looking forward, earnings are forecast to grow by 18% annually.

Sector Valuation and Performance

Has the U.S. Healthcare Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 23 May 2026US$6.3tUS$3.3tUS$122.9b23.4x51.4x1.9x
Mon, 20 Apr 2026US$6.4tUS$3.3tUS$121.1b24x52.4x1.9x
Wed, 18 Mar 2026US$6.3tUS$3.3tUS$124.3b24.5x50.5x1.9x
Fri, 13 Feb 2026US$6.5tUS$3.3tUS$126.7b25.8x51.2x2x
Sun, 11 Jan 2026US$6.6tUS$3.2tUS$136.3b26.5x48.5x2.1x
Tue, 09 Dec 2025US$6.4tUS$3.2tUS$133.6b25.9x47.7x2x
Thu, 06 Nov 2025US$6.0tUS$3.2tUS$133.5b25.5x44.8x1.9x
Sat, 04 Oct 2025US$6.0tUS$3.1tUS$137.8b24.7x43.2x1.9x
Mon, 01 Sep 2025US$5.7tUS$3.1tUS$137.5b23.3x41.4x1.8x
Wed, 30 Jul 2025US$5.6tUS$3.1tUS$125.1b24.2x44.5x1.8x
Fri, 27 Jun 2025US$5.5tUS$3.0tUS$127.5b24.5x43.1x1.8x
Sun, 25 May 2025US$5.3tUS$3.0tUS$126.9b22.8x41.7x1.7x
Tue, 22 Apr 2025US$5.3tUS$2.6tUS$97.8b23.7x54x2x
Thu, 20 Mar 2025US$5.7tUS$2.6tUS$75.2b26.9x75.9x2.2x
Sat, 15 Feb 2025US$5.9tUS$2.6tUS$82.1b26.7x71.5x2.2x
Mon, 13 Jan 2025US$5.8tUS$2.9tUS$78.7b27.6x74.2x2x
Wed, 11 Dec 2024US$6.1tUS$2.9tUS$77.5b28.8x78.4x2.1x
Fri, 08 Nov 2024US$6.2tUS$2.9tUS$71.7b28.3x86.6x2.1x
Sun, 06 Oct 2024US$6.2tUS$2.8tUS$60.0b29.7x102.5x2.2x
Tue, 03 Sep 2024US$6.3tUS$2.8tUS$60.4b32.2x105x2.2x
Thu, 01 Aug 2024US$6.4tUS$2.9tUS$69.4b32.1x91.6x2.2x
Sat, 29 Jun 2024US$6.2tUS$2.8tUS$62.2b30.5x99.3x2.2x
Mon, 27 May 2024US$6.1tUS$2.8tUS$63.7b30.9x96.4x2.2x
Wed, 24 Apr 2024US$6.0tUS$2.8tUS$84.4b30.9x71.5x2.2x
Fri, 22 Mar 2024US$6.3tUS$2.8tUS$82.1b32.5x76.3x2.3x
Sun, 18 Feb 2024US$6.3tUS$2.8tUS$82.4b30.1x75.9x2.2x
Tue, 16 Jan 2024US$6.4tUS$2.8tUS$90.8b32.2x70.2x2.3x
Thu, 14 Dec 2023US$6.0tUS$2.8tUS$91.5b31.7x65.9x2.1x
Sat, 11 Nov 2023US$5.6tUS$2.8tUS$91.0b26.5x62x2x
Mon, 09 Oct 2023US$5.9tUS$2.8tUS$98.3b26.7x59.7x2.1x
Wed, 06 Sep 2023US$6.0tUS$2.8tUS$98.6b27x61.2x2.2x
Fri, 04 Aug 2023US$6.0tUS$2.8tUS$94.7b29.5x63.2x2.2x
Sun, 02 Jul 2023US$6.1tUS$2.7tUS$110.3b26.6x54.9x2.2x
Tue, 30 May 2023US$5.8tUS$2.7tUS$110.5b24.4x52.6x2.1x
Price to Earnings Ratio

52.6x


Total Market Cap: US$5.8tTotal Earnings: US$110.5bTotal Revenue: US$2.7tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.5x202420252026
Current Industry PE
  • Investors are pessimistic on the American Healthcare industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 51.4x which is lower than its 3-year average PE of 65.5x.
  • The industry is trading close to its 3-year average PS ratio of 2.1x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have grown 3.6% per year over the last three years.
  • Revenues for these companies have grown 7.0% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Healthcare sector?

US Market1.01%
Healthcare3.11%
Pharma4.94%
Medical Equipment4.36%
Life Sciences4.08%
Healthtech2.63%
Biotech1.20%
Healthcare Services-0.41%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 54.6x.
    • Analysts expect its future annual earnings growth (16.1%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 25% over the next 5 years.
  • However this is lower than its past earnings growth rate of 43% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 14% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
LLY Eli LillyUS$1.07k6.0%
+US$53.6b		49.2%PE37.6x
MRK MerckUS$122.419.9%
+US$27.2b		57.8%PE33.8x
JNJ Johnson & JohnsonUS$234.343.4%
+US$18.4b		53.2%PE26.8x
ABBV AbbVieUS$215.702.5%
+US$9.4b		17.7%PE106x
BSX Boston ScientificUS$57.789.7%
+US$7.6b		-44.7%PE24.1x

Latest News

RGC
US$25.80
Regencell Bioscience Holdings
7D
-9.7%
1Y
75.1%
JNJ
US$234.34
Johnson & Johnson
7D
3.4%
1Y
53.2%
Seeking Alpha • 13h

Johnson & Johnson: A Dividend King, But Priced Appropriately, Big Conference Slate

Summary Johnson & Johnson is rated Hold, trading near intrinsic value with limited upside based on a 20x multiple and $12 normalized EPS. Q1 results showed 10% sales growth and a $450M revenue beat, with management raising FY 2026 guidance and extending the dividend growth streak to 64 years. JNJ faces headwinds from biosimilar and generic competition, MedTech challenges, and commercial sluggishness, but maintains strong FCF yield and a robust product pipeline. Technicals are mixed but lean bullish, with $235 as near-term resistance and investors advised to monitor upcoming conference commentary and sector momentum. Read the full article on Seeking Alpha
LLY
US$1,065.00
Eli Lilly
7D
6.0%
1Y
49.2%
AMGN
US$339.30
Amgen
7D
4.0%
1Y
24.9%
MRNA
US$46.88
Moderna
7D
-4.4%
1Y
78.5%
UNH
US$388.47
UnitedHealth Group
7D
-1.4%
1Y
31.4%
ISRG
US$438.10
Intuitive Surgical
7D
4.0%
1Y
-18.8%
MRK
US$122.41
Merck
7D
9.9%
1Y
57.8%
Narrative Update • May 21

Merck (MRK) – Expands Oncology Leadership with New Clinical Data at ASCO 2026

Announcement Overview Analyst: Qudus Adebara (Founder, Wane Investment House) Merck & Co., Inc. (“Merck” or “the Company”), known as MSD outside the United States and Canada, has announced that it will present more than 100 abstracts spanning over 25 cancer types at the 2026 American Society of Clinical Oncology (ASCO) Annual Meeting , scheduled for May 29 – June 2, 2026.
BSX
US$57.78
Boston Scientific
7D
9.7%
1Y
-44.7%
CVS
US$93.26
CVS Health
7D
-2.7%
1Y
53.3%
DHR
US$172.00
Danaher
7D
6.2%
1Y
-6.8%
Narrative Update • May 19

DHR: Bioprocess Recovery And Masimo Deal Set To Support Premium Multiple

Analysts have trimmed the implied fair value for Danaher by about $2 to roughly $248 per share, as they balance slightly higher long term growth and margin expectations with a lower assumed P/E multiple, evolving views on bioprocess recovery, and recent price target changes across the Street. Analyst Commentary Recent Street commentary around Danaher reflects a mixed but engaged view, with several firms adjusting price targets and reassessing how quickly the company can execute on its bioprocess ambitions and broader portfolio moves.
ABBV
US$215.70
AbbVie
7D
2.5%
1Y
17.7%
GKOS
US$120.23
Glaukos
7D
-16.5%
1Y
25.2%
Narrative Update • May 18

GKOS: Corneal Therapies And Repeat Procedures Will Likely Underpin Balanced Future Returns

Narrative Update on Glaukos The updated analyst framework lifts the fair value estimate for Glaukos from $120 to $136. Analysts point to recent price target increases across the Street and ongoing expectations around iDose and Epioxa volume build as key supports for the higher valuation, along with slightly stronger long-term margin and P/E assumptions.
REGN
US$638.88
Regeneron Pharmaceuticals
7D
-8.5%
1Y
8.6%
Seeking Alpha • May 18

Regeneron: Time To Forget Fianlimab (Rating Upgrade)

Summary Regeneron faced a setback after fianlimab and Libtayo failed in a phase 3 trial in first-line metastatic melanoma. These results have negative read-through to other fianlimab-based trials in melanoma. I see Regeneron as a strong buy after the pullback, as fianlimab-based combinations were not critical for long-term value creation. Return to stronger growth, expanding and maturing pipeline, and a strong balance sheet position the company well for success. Key risks include further Eylea franchise weakness and potential new clinical disappointments. Read the full article on Seeking Alpha
HCA
US$394.07
HCA Healthcare
7D
-6.8%
1Y
4.6%
THC
US$173.78
Tenet Healthcare
7D
-11.6%
1Y
6.6%
Narrative Update • May 10

THC: Buybacks And Higher Acuity Demand Will Offset Cautious 2026 Margin Expectations

Tenet Healthcare's updated analyst price target has moved from $228.45 to $210.00 as analysts factor in a slightly higher discount rate, modestly adjusted revenue and margin assumptions, and lower future P/E expectations following a series of recent target cuts across the Street. Analyst Commentary Recent Street research around Tenet Healthcare reflects a clear shift toward more cautious positioning, with several bearish analysts trimming price targets and reassessing assumptions for valuation and execution risk.