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U.S. Healthcare Sector Analysis

UpdatedSep 10, 2026
DataAggregated Company Financials
Companies1378
  • 7D-3.4%
  • 3M8.9%
  • 1Y22.8%
  • YTD8.2%

Over the last 7 days, the Healthcare industry has dropped 3.4%, driven by pullbacks in Eli Lilly and Amgen of 3.1% and 12%, respectively. On the other hand Roivant Sciences is actually up 22%. Over the past 12 months, the industry was up 23%. Earnings are forecast to grow by 21% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 10 Sep 2026US$7.1tUS$3.4tUS$117.6b25.8x60.2x2.1x
Sat, 08 Aug 2026US$7.0tUS$3.4tUS$114.5b26.2x60.9x2.1x
Mon, 06 Jul 2026US$7.0tUS$3.3tUS$122.0b25.8x57.4x2.1x
Wed, 03 Jun 2026US$6.3tUS$3.3tUS$122.4b22.7x51.5x1.9x
Fri, 01 May 2026US$6.1tUS$3.3tUS$122.1b23x49.6x1.8x
Sun, 29 Mar 2026US$6.0tUS$3.3tUS$125.9b21.8x47.5x1.8x
Tue, 24 Feb 2026US$6.5tUS$3.3tUS$128.2b26.5x51.1x2x
Thu, 22 Jan 2026US$6.5tUS$3.2tUS$138.0b28x47.3x2x
Sat, 20 Dec 2025US$6.4tUS$3.2tUS$135.2b26.2x47.6x2x
Mon, 17 Nov 2025US$6.2tUS$3.2tUS$133.4b25.9x46.8x2x
Wed, 15 Oct 2025US$5.9tUS$3.1tUS$140.4b24.4x42.2x1.9x
Fri, 12 Sep 2025US$5.7tUS$3.1tUS$137.7b23.1x41.5x1.8x
Sun, 10 Aug 2025US$5.4tUS$3.1tUS$139.6b23.3x38.5x1.7x
Tue, 08 Jul 2025US$5.6tUS$3.0tUS$127.9b24x43.4x1.8x
Thu, 05 Jun 2025US$5.4tUS$3.0tUS$127.3b23.5x42.6x1.8x
Sat, 03 May 2025US$5.5tUS$2.7tUS$124.5b25x44.1x2x
Mon, 31 Mar 2025US$5.6tUS$2.6tUS$81.7b26.4x69.1x2.1x
Wed, 26 Feb 2025US$5.8tUS$2.6tUS$80.9b26.2x72.2x2.2x
Fri, 24 Jan 2025US$6.0tUS$2.9tUS$85.4b27.1x69.9x2x
Sun, 22 Dec 2024US$5.8tUS$2.9tUS$78.2b27.7x73.5x2x
Tue, 19 Nov 2024US$5.9tUS$2.9tUS$76.6b27.5x77.4x2x
Thu, 17 Oct 2024US$6.2tUS$2.8tUS$58.6b30.3x106.3x2.2x
Sat, 14 Sep 2024US$6.3tUS$2.8tUS$60.3b30.6x104.4x2.2x
Mon, 12 Aug 2024US$6.0tUS$2.8tUS$55.3b30.3x108.9x2.1x
Wed, 10 Jul 2024US$6.1tUS$2.8tUS$62.2b29.5x98.5x2.2x
Fri, 07 Jun 2024US$6.2tUS$2.8tUS$63.7b30.4x97.2x2.2x
Sun, 05 May 2024US$6.0tUS$2.8tUS$65.2b31.1x92.6x2.1x
Tue, 02 Apr 2024US$6.4tUS$2.8tUS$83.9b32.8x75.7x2.3x
Thu, 29 Feb 2024US$6.3tUS$2.8tUS$85.7b30.5x73.9x2.3x
Sat, 27 Jan 2024US$6.3tUS$2.8tUS$90.7b32x69.4x2.2x
Mon, 25 Dec 2023US$6.2tUS$2.8tUS$91.6b33.1x67.4x2.2x
Wed, 22 Nov 2023US$5.8tUS$2.8tUS$90.7b27.8x63.6x2x
Fri, 20 Oct 2023US$5.8tUS$2.8tUS$99.5b25.7x58x2.1x
Sun, 17 Sep 2023US$6.0tUS$2.8tUS$98.6b29.3x61x2.2x
Price to Earnings Ratio

61x


Total Market Cap: US$6.0tTotal Earnings: US$98.6bTotal Revenue: US$2.8tTotal 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 60.2x 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 6.0% per year over the last three years.
  • Revenues for these companies have grown 6.7% 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 Market-0.22%
Healthcare-3.36%
Healthcare Services-1.56%
Life Sciences-1.94%
Pharma-3.03%
Biotech-4.37%
Medical Equipment-5.06%
Healthtech-6.98%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 55.3x.
    • Analysts are expecting annual earnings growth of 18.8%, which is higher than its past year's earnings growth of 9.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 29% over the next 5 years.
  • However this is lower than its past earnings growth rate of 65% per year.
  • In contrast, the Healthcare Services industry is expected to see its earnings grow by 17% 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
ROIV Roivant SciencesUS$41.8122.3%
+US$5.5b		203.6%PS4009.6x
HCA HCA HealthcareUS$421.834.9%
+US$4.3b		7.0%PE13.4x
SMMT Summit TherapeuticsUS$17.5420.1%
+US$2.3b		-0.4%PB22.2x
BLTE Belite BioUS$183.1614.0%
+US$906.1m		176.4%PB9.5x
THC Tenet HealthcareUS$269.084.1%
+US$849.5m		40.3%PE9.7x

Latest News

TXG
US$67.29
10x Genomics
7D
9.1%
1Y
434.5%
UTHR
US$506.82
United Therapeutics
7D
3.0%
1Y
27.8%
SYK
US$275.39
Stryker
7D
-11.8%
1Y
-28.1%
THC
US$269.08
Tenet Healthcare
7D
4.1%
1Y
40.3%
BLTE
US$183.16
Belite Bio
7D
14.0%
1Y
176.4%
Seeking Alpha • Sep 09

Belite Bio On Track For A Potential Blockbuster Launch In 2027

Summary Belite Bio has stayed on track toward a potential blockbuster launch of tinlarebant in 2027, with FDA approval for STGD1 expected in February 2027. The FDA's acceptance of the NDA and priority review status reduce (but don't eliminate) regulatory risks, while label scope and pricing remain key unknowns. Management is planning to launch tinlarebant with a modest 50-rep sales force, but driving awareness among patients and general optometrists and ophthalmologists will be key over the long term. My base-case assumptions lead me to a fair value between $205 and $220, but a clean FDA approval with generous labeling and pricing meaningfully above $350K/year could drive significant upside. With $780M in cash and manageable burn, BLTE is a 'strong hold'—I would revisit it on a sentiment-driven pullback. Read the full article on Seeking Alpha
VRTX
US$521.12
Vertex Pharmaceuticals
7D
-6.4%
1Y
34.1%
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Summary Vertex Pharmaceuticals Incorporated (VRTX) remains a 'Hold' as upside is constrained by valuation and execution risks outside cystic fibrosis. Vertex’s cystic fibrosis franchise continues robust 11% Y/Y growth, but dependency remains high at 96% of product revenues. New launches — JOURNAVX, CASGEVY, and the Crinetics acquisition — show promise but face commercialization and margin headwinds. Elevated SG&A growth and product mix shifts are pressuring margins; further upside depends on successful execution of new assets. Read the full article on Seeking Alpha
MRK
US$147.53
Merck
7D
-2.7%
1Y
75.6%
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MRK: Cancer Vaccine Breakthrough And Broader Pipeline Will Shape Post Keytruda Outlook

Merck's analyst fair value estimate has risen from $136.85 to $150.42 as analysts factor in expectations for higher long term revenue growth, slightly better profit margins, and a richer projected future P/E multiple. This revised outlook is supported by a wave of price target increases tied to positive melanoma vaccine data and broader pipeline progress.
HCA
US$421.83
HCA Healthcare
7D
4.9%
1Y
7.0%
AMGN
US$391.27
Amgen
7D
-11.6%
1Y
40.5%
ROIV
US$41.81
Roivant Sciences
7D
22.3%
1Y
203.6%
ABT
US$105.23
Abbott Laboratories
7D
-4.7%
1Y
-18.7%
LLY
US$1,124.21
Eli Lilly
7D
-3.1%
1Y
49.0%
Narrative Update • Sep 05

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The analyst fair value estimate for Eli Lilly has been raised from $1,500 to $1,600 as analysts point to strong Q2 incretin volume, obesity drug demand, and upgraded multi-year guidance as key supports for higher long-term assumptions. Analyst Commentary Recent Street research on Eli Lilly points to a broadly constructive tone, with many bullish analysts lifting price targets after Q2 results and updated guidance.
ABBV
US$250.91
AbbVie
7D
-4.1%
1Y
18.6%
SMMT
US$17.54
Summit Therapeutics
7D
20.1%
1Y
-0.4%
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November 14 Is The Make-Or-Break Moment For Summit Therapeutics' Cancer Bet

Summary Summit Therapeutics is positioned as a high-conviction buy into the November 2026 FDA PDUFA decision for ivonescimab in NSCLC. SMMT’s ivonescimab demonstrates robust PFS and statistically significant OS benefits in multiple Phase III trials, supporting best-in-class potential versus PD-1 monotherapy. Financials reflect intentional capital deployment, with $690M+ cash and 4–5 quarters of runway to fund late-stage clinical catalysts and regulatory milestones. Valuation is binary-driven, with the $10B+ EV pricing in multi-billion-dollar peak sales and a pivotal regulatory outcome as the next inflection point. Read the full article on Seeking Alpha
NTRA
US$330.31
Natera
7D
1.6%
1Y
94.5%
Narrative Update • Sep 03

NTRA: Elevated Expectations Around MRD Adoption Will Pressure 2026 Catalyst Payoff

The analyst price target for Natera has been revised higher from $206.81 to $280.00 as analysts incorporate Q2 report takeaways, stronger expectations around Signatera performance, oncology and MRD volume trends, and improving profitability into their models. Analyst Commentary Recent Street research on Natera clusters around a constructive view of the core oncology and minimal residual disease, or MRD, opportunity, while also highlighting valuation sensitivity and execution risk.
JNJ
US$267.08
Johnson & Johnson
7D
-3.0%
1Y
51.9%
Narrative Update • Sep 03

JNJ: Deep Pharma Pipeline And New Medicines Will Support Confidence Through 2026

Analysts have raised the Johnson & Johnson fair value estimate from $305 to $320, citing higher revenue and earnings expectations relative to consensus. These expectations are supported by a stronger profit margin profile and confidence in the company's pharmaceutical pipeline and partnered assets such as Icotyde.