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U.S. Healthcare Sector Analysis

UpdatedAug 22, 2026
DataAggregated Company Financials
Companies1381
  • 7D4.1%
  • 3M16.9%
  • 1Y28.6%
  • YTD13.4%

The Healthcare industry is up 4.1% in the last week, with Eli Lilly up 6.4%. In the last 12 months, the industry was up 29%. As for the next few years, earnings are expected to grow by 20% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 22 Aug 2026US$7.3tUS$3.4tUS$115.8b27.1x63.1x2.2x
Mon, 20 Jul 2026US$6.9tUS$3.3tUS$123.3b25.3x55.6x2.1x
Wed, 17 Jun 2026US$6.5tUS$3.3tUS$122.0b23.4x53x1.9x
Fri, 15 May 2026US$6.7tUS$3.3tUS$122.8b23.4x54.7x2x
Sun, 12 Apr 2026US$6.2tUS$3.3tUS$127.2b22.7x48.8x1.9x
Tue, 10 Mar 2026US$6.4tUS$3.3tUS$125.9b25.5x50.5x1.9x
Thu, 05 Feb 2026US$6.5tUS$3.2tUS$126.3b26.9x51.2x2x
Sat, 03 Jan 2026US$6.5tUS$3.2tUS$135.6b25.7x47.8x2x
Mon, 01 Dec 2025US$6.5tUS$3.2tUS$133.5b26.5x48.9x2.1x
Wed, 29 Oct 2025US$6.1tUS$3.1tUS$140.4b26x43.5x2x
Fri, 26 Sep 2025US$5.7tUS$3.1tUS$137.6b23.1x41.4x1.8x
Sun, 24 Aug 2025US$5.7tUS$3.1tUS$137.2b23.7x41.8x1.9x
Tue, 22 Jul 2025US$5.4tUS$3.0tUS$128.7b22.6x42x1.8x
Thu, 19 Jun 2025US$5.5tUS$3.0tUS$127.5b22.8x42.9x1.8x
Sat, 17 May 2025US$5.3tUS$3.0tUS$126.1b23.3x42.1x1.7x
Mon, 14 Apr 2025US$5.3tUS$2.6tUS$82.2b24.9x64.6x2x
Wed, 12 Mar 2025US$5.7tUS$2.6tUS$79.0b26.5x72.5x2.2x
Fri, 07 Feb 2025US$6.0tUS$2.6tUS$90.6b26.9x66x2.3x
Sun, 05 Jan 2025US$5.8tUS$2.9tUS$79.3b27.3x73.5x2x
Tue, 03 Dec 2024US$6.2tUS$2.9tUS$77.4b28.7x79.7x2.1x
Thu, 31 Oct 2024US$6.1tUS$2.8tUS$66.8b27.7x90.6x2.1x
Sat, 28 Sep 2024US$6.2tUS$2.8tUS$60.1b30.1x103.5x2.2x
Mon, 26 Aug 2024US$6.3tUS$2.8tUS$56.4b31.6x111.1x2.2x
Wed, 24 Jul 2024US$6.3tUS$2.8tUS$60.8b31.9x104.1x2.2x
Fri, 21 Jun 2024US$6.2tUS$2.8tUS$62.5b30x98.5x2.2x
Sun, 19 May 2024US$6.2tUS$2.8tUS$64.1b31.1x97.2x2.2x
Tue, 16 Apr 2024US$6.0tUS$2.8tUS$85.3b31.1x70.1x2.1x
Thu, 14 Mar 2024US$6.3tUS$2.8tUS$84.4b32.4x74.6x2.3x
Sat, 10 Feb 2024US$6.2tUS$2.8tUS$76.6b31.5x80.7x2.2x
Mon, 08 Jan 2024US$6.3tUS$2.8tUS$90.0b30.9x70.1x2.2x
Wed, 06 Dec 2023US$6.0tUS$2.8tUS$91.4b29x65.2x2.1x
Fri, 03 Nov 2023US$5.6tUS$2.8tUS$90.6b25.8x62x2x
Sun, 01 Oct 2023US$5.9tUS$2.8tUS$98.2b27.6x59.7x2.1x
Tue, 29 Aug 2023US$6.1tUS$2.8tUS$99.0b27.7x61.6x2.2x
Price to Earnings Ratio

61.6x


Total Market Cap: US$6.1tTotal Earnings: US$99.0bTotal 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 relatively neutral on the American Healthcare industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio 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 5.4% 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-1.53%
Healthcare4.15%
Life Sciences7.35%
Biotech6.92%
Pharma5.82%
Healthtech2.42%
Medical Equipment0.36%
Healthcare Services-1.45%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 55.6x.
    • Analysts are expecting annual earnings growth of 18.6%, 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 28% over the next 5 years.
  • However this is lower than its past earnings growth rate of 65% per year.
  • In contrast, the Medical Equipment 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
LLY Eli LillyUS$1.26k6.4%
+US$67.1b		76.4%PE41.9x
MRK MerckUS$152.5512.3%
+US$41.2b		74.6%PE118.6x
MRNA ModernaUS$145.13129.2%
+US$32.7b		435.1%PS26x
ABBV AbbVieUS$264.966.2%
+US$27.4b		25.8%PE74.7x
JNJ Johnson & JohnsonUS$270.243.8%
+US$23.8b		50.7%PE31x

Latest News

MRK
US$152.55
Merck
7D
12.3%
1Y
74.6%
JNJ
US$270.24
Johnson & Johnson
7D
3.8%
1Y
50.7%
TMO
US$629.27
Thermo Fisher Scientific
7D
7.0%
1Y
25.9%
ABBV
US$264.96
AbbVie
7D
6.2%
1Y
25.8%
MRNA
US$145.13
Moderna
7D
129.2%
1Y
435.1%
ISRG
US$378.81
Intuitive Surgical
7D
-4.0%
1Y
-20.4%
Seeking Alpha • Aug 21

Intuitive Surgical: Stock Price Too High Even For Great Business

Summary Intuitive Surgical remains a high-quality business with a likely wide economic moat, driven by high switching costs and recurring revenue. Despite robust Q2/26 results—18.5% revenue growth and 26.5% EPS growth—ISRG trades at elevated valuation multiples, even after a 36% pullback. Management guides for 13.5–15.5% revenue growth and 68–69% gross margin in 2026, supported by strong market expansion and margin improvement. I rate ISRG a hold, as even optimistic DCF scenarios suggest the stock is at or above intrinsic value. Read the full article on Seeking Alpha
LLY
US$1,255.40
Eli Lilly
7D
6.4%
1Y
76.4%
UNH
US$390.11
UnitedHealth Group
7D
-2.9%
1Y
26.9%
AMGN
US$439.33
Amgen
7D
5.8%
1Y
49.6%
Narrative Update • Aug 20

AMGN: IRS And Regulatory Setbacks Will Restrain Pipeline Driven Repricing

Amgen's analyst fair value estimate has moved from about $252.61 to roughly $271.69, reflecting a series of higher Street price targets that analysts link to Q2 earnings strength, an updated revenue and margin outlook, and confidence in the company’s pipeline and recently launched products. Analyst Commentary Street research on Amgen after Q2 clusters around a clear message.
CAH
US$229.51
Cardinal Health
7D
-2.4%
1Y
55.0%
SYK
US$329.45
Stryker
7D
-2.9%
1Y
-16.4%
CVS
US$93.02
CVS Health
7D
-4.3%
1Y
30.5%
CI
US$277.51
Cigna Group
7D
-1.8%
1Y
-8.8%
Seeking Alpha • Aug 17

Cigna: I'm Buying What Others Are Ignoring

Summary Cigna Group remains a "Buy," with double-digit adjusted EPS growth intact and shares trading 28% below fair value. CI’s Accredo and AI-powered Pharmacy Forward platforms are key growth drivers, supporting robust revenue and margin expansion through 2028. The company boasts an A- S&P credit rating, strong free cash flow, and a secure, growing dividend with low payout ratios. CI offers mid-teens annual total return potential through 2031, underpinned by consistent earnings beats and disciplined capital allocation. Read the full article on Seeking Alpha
BSX
US$50.37
Boston Scientific
7D
-2.8%
1Y
-52.6%
DHR
US$218.85
Danaher
7D
8.1%
1Y
3.3%
Seeking Alpha • Aug 14

Danaher: 2027 Growth Reacceleration Should Drive Upside

Summary Danaher is rated a Buy, with revenue growth expected to accelerate in 2027 as respiratory headwinds fade and bioprocessing shipments recover. DHR’s valuation is reasonable, trading at a 12% discount to its five-year average P/E, supported by strong recurring revenues and operational excellence. Life Sciences segment shows robust recovery, with 5.5% core growth and margin expansion, driven by improved pharma spending and biotech funding. Bioprocessing order delays are temporary, with over $100 million in revenue shifting to 2027, positioning DHR for future upside. Read the full article on Seeking Alpha
ALGN
US$162.55
Align Technology
7D
-10.3%
1Y
8.7%