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U.S. Healthcare Sector Analysis

UpdatedAug 05, 2026
DataAggregated Company Financials
Companies1395
  • 7D-2.0%
  • 3M10.8%
  • 1Y24.9%
  • YTD5.4%

Over the last 7 days, the Healthcare industry has dropped 2.0%, driven by Eli Lilly declining 8.6%. On the other hand Regeneron Pharmaceuticals is actually up 9.4%. In the past year, the industry has gained 25%. Looking forward, earnings are forecast to grow by 19% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 05 Aug 2026US$6.9tUS$3.4tUS$121.2b26.9x56.9x2.1x
Fri, 03 Jul 2026US$6.9tUS$3.3tUS$122.0b25.8x56.3x2.1x
Sun, 31 May 2026US$6.4tUS$3.3tUS$122.4b23.2x52.2x1.9x
Tue, 28 Apr 2026US$6.1tUS$3.3tUS$121.4b23.6x50.6x1.9x
Thu, 26 Mar 2026US$6.1tUS$3.3tUS$124.9b22.7x48.6x1.9x
Sat, 21 Feb 2026US$6.6tUS$3.3tUS$128.1b26.6x51.4x2x
Mon, 19 Jan 2026US$6.5tUS$3.2tUS$136.3b27.3x48x2x
Wed, 17 Dec 2025US$6.5tUS$3.2tUS$135.3b26.3x48.1x2x
Fri, 14 Nov 2025US$6.3tUS$3.2tUS$133.4b26x47.2x2x
Sun, 12 Oct 2025US$5.9tUS$3.1tUS$137.9b24.5x42.9x1.9x
Tue, 09 Sep 2025US$5.7tUS$3.1tUS$137.6b23.1x41.7x1.9x
Thu, 07 Aug 2025US$5.5tUS$3.1tUS$134.9b22.8x40.5x1.8x
Sat, 05 Jul 2025US$5.6tUS$3.0tUS$127.9b24.3x43.4x1.8x
Mon, 02 Jun 2025US$5.4tUS$3.0tUS$127.6b23.1x42.2x1.8x
Wed, 30 Apr 2025US$5.4tUS$2.7tUS$116.9b24.9x46.3x2x
Fri, 28 Mar 2025US$5.7tUS$2.6tUS$81.6b26.3x69.4x2.1x
Sun, 23 Feb 2025US$5.8tUS$2.6tUS$80.5b26.6x72.4x2.2x
Tue, 21 Jan 2025US$5.9tUS$2.9tUS$78.9b27.7x74.2x2x
Thu, 19 Dec 2024US$5.8tUS$2.9tUS$78.1b27.5x74.7x2x
Sat, 16 Nov 2024US$6.1tUS$2.9tUS$76.6b27.8x79.3x2.1x
Mon, 14 Oct 2024US$6.2tUS$2.8tUS$60.0b29.8x104x2.2x
Wed, 11 Sep 2024US$6.2tUS$2.8tUS$60.4b30.1x103.2x2.2x
Fri, 09 Aug 2024US$6.2tUS$2.9tUS$59.6b30.3x103.4x2.1x
Sun, 07 Jul 2024US$6.1tUS$2.8tUS$62.2b30.2x98.5x2.2x
Tue, 04 Jun 2024US$6.1tUS$2.8tUS$64.0b30.5x95.2x2.2x
Thu, 02 May 2024US$6.0tUS$2.8tUS$71.2b31.2x84.3x2.1x
Sat, 30 Mar 2024US$6.4tUS$2.8tUS$82.8b32.4x76.8x2.3x
Mon, 26 Feb 2024US$6.3tUS$2.8tUS$85.5b31.1x74x2.3x
Wed, 24 Jan 2024US$6.4tUS$2.8tUS$90.1b32.7x70.5x2.3x
Fri, 22 Dec 2023US$6.0tUS$2.8tUS$91.5b32.3x66.1x2.1x
Sun, 19 Nov 2023US$5.8tUS$2.8tUS$90.7b27.8x63.6x2x
Tue, 17 Oct 2023US$5.9tUS$2.8tUS$98.9b26.4x59.7x2.1x
Thu, 14 Sep 2023US$6.0tUS$2.8tUS$98.7b27.8x61.3x2.2x
Sat, 12 Aug 2023US$6.2tUS$2.8tUS$99.1b28.6x62.6x2.2x
Price to Earnings Ratio

62.6x


Total Market Cap: US$6.2tTotal Earnings: US$99.1bTotal 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 56.9x 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 7.0% per year over the last three years.
  • Revenues for these companies have grown 6.4% 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 Market4.85%
Healthcare-1.96%
Healthtech3.12%
Medical Equipment2.27%
Biotech0.62%
Life Sciences-1.16%
Healthcare Services-4.12%
Pharma-4.56%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 55.8x.
    • Analysts are expecting annual earnings growth of 17.7%, which is higher than its past year's earnings growth of 8.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 24% over the next 5 years.
  • However this is lower than its past earnings growth rate of 64% 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
REGN Regeneron PharmaceuticalsUS$760.669.4%
+US$5.2b		37.0%PE17.5x
BMY Bristol-Myers SquibbUS$65.893.6%
+US$4.7b		43.7%PE14.5x
DXCM DexComUS$86.9416.2%
+US$3.9b		15.2%PE32.8x
EW Edwards LifesciencesUS$89.607.1%
+US$3.4b		13.1%PE52.6x
TEVA Teva Pharmaceutical IndustriesUS$34.438.7%
+US$3.2b		119.2%PE56.8x

Latest News

MRK
US$128.00
Merck
7D
-2.9%
1Y
58.4%
BSX
US$49.09
Boston Scientific
7D
6.6%
1Y
-53.2%
CI
US$274.05
Cigna Group
7D
-9.0%
1Y
1.2%
JNJ
US$254.93
Johnson & Johnson
7D
-4.4%
1Y
49.3%
ABBV
US$243.80
AbbVie
7D
-7.4%
1Y
22.8%
NTRA
US$275.19
Natera
7D
8.4%
1Y
99.2%
Narrative Update • Aug 04

NTRA: Guideline And Regulatory MRD Tailwinds Will Drive Long-Term Upside Potential

The analyst price target for Natera has been raised by $20, from $310 to $330. Analysts cite larger addressable markets, ongoing volume trends, and a series of recent guideline wins and regulatory approvals that support slightly higher revenue growth, profit margins, and a higher future P/E in updated models.
BMY
US$65.89
Bristol-Myers Squibb
7D
3.6%
1Y
43.7%
REGN
US$760.66
Regeneron Pharmaceuticals
7D
9.4%
1Y
37.0%
LLY
US$1,115.68
Eli Lilly
7D
-8.6%
1Y
45.7%
TEVA
US$34.43
Teva Pharmaceutical Industries
7D
8.7%
1Y
119.2%
Seeking Alpha • Aug 03

Teva's Re-Rating Still Has Room To Run

Summary Teva Pharmaceutical is undergoing a transformation, shifting its revenue mix toward specialty and innovative drugs, now over $1 billion per quarter. TEVA targets $3.7 billion in specialty/innovative sales for 2026 and aims for operating margins near 30% by 2027, driven by product mix and cost savings. Leverage has dropped below 3x EBITDA, with a goal of 2x by 2027, supported by $2–$2.4 billion free cash flow guidance for 2026. I maintain a Buy rating, as TEVA still trades below sector multiples and further upside is possible if specialty growth and margin targets are met. Read the full article on Seeking Alpha
DXCM
US$86.94
DexCom
7D
16.2%
1Y
15.2%
ALNY
US$219.00
Alnylam Pharmaceuticals
7D
-23.6%
1Y
-48.8%
EW
US$89.60
Edwards Lifesciences
7D
7.1%
1Y
13.1%
Narrative Update • Jul 30

EW: CMS TAVR Policy Shift Will Extend Structural Heart Upside

Analysts have lifted their fair value estimate for Edwards Lifesciences to about $101 from roughly $99, reflecting higher Street price targets in the $95 to $110 range and research that points to TAVR adoption, structural heart therapy expansion, and an earnings profile that some see as underappreciated at current valuations. Analyst Commentary Recent Street commentary on Edwards Lifesciences has turned more constructive, with several firms lifting ratings and price targets into the mid to high US$90s and low US$100s range.
GILD
US$135.25
Gilead Sciences
7D
1.9%
1Y
22.6%
Narrative Update • Jul 28

GILD: Future Returns Will Depend On HIV Franchise And Oncology Execution

Analysts have nudged their price targets for Gilead Sciences lower by a few dollars, generally citing updated models that factor in company commentary on Q2 R&D, a softer outlook for HIV PrEP expansion, and ongoing competitive pressure in oncology and cell therapy, alongside mixed views on the long acting HIV pipeline. Analyst Commentary Recent research on Gilead Sciences points to a more cautious tone around the stock, even as views remain mixed.
UNH
US$407.55
UnitedHealth Group
7D
-5.0%
1Y
62.4%
Narrative Update • Jul 28

UNH: Medicare Reset And AI Efficiency Gains Will Drive Multi Year Margin Recovery

UnitedHealth Group's updated analyst price target framework, which lifts fair value from $424.23 to $475.23, reflects analysts' refreshed models after a stronger Q2, improved visibility on Medicare and Optum Health margin recovery, as well as modestly higher assumptions for revenue growth, profit margins, and target P/E multiples. Analyst Commentary Recent research on UnitedHealth Group clusters around a more constructive view of the company following its Q2 update, while still flagging a few areas that could matter for valuation and execution.
MCK
US$830.43
McKesson
7D
-6.6%
1Y
17.0%