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

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 61.7x 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.

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

Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 55.7x. Analysts are expecting annual earnings growth of 18.9%, which is higher than its past year's earnings growth of 5.8% per year.

U.S. Healthcare Sector Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Mon, 10 Aug 2026	US$7.0t	US$3.4t	US$114.2b	26.1x	61.7x	2.1x
Wed, 08 Jul 2026	US$6.9t	US$3.3t	US$122.0b	25.5x	56.9x	2.1x
Fri, 05 Jun 2026	US$6.3t	US$3.3t	US$122.7b	23.7x	51x	1.9x
Sun, 03 May 2026	US$6.2t	US$3.3t	US$118.0b	23.6x	52.4x	1.9x
Tue, 31 Mar 2026	US$6.0t	US$3.3t	US$126.5b	21.9x	47.3x	1.8x
Thu, 26 Feb 2026	US$6.6t	US$3.3t	US$126.3b	26.2x	52.2x	2x
Sat, 24 Jan 2026	US$6.7t	US$3.2t	US$130.6b	28.5x	51.1x	2.1x
Mon, 22 Dec 2025	US$6.5t	US$3.2t	US$135.2b	26.2x	48x	2x
Wed, 19 Nov 2025	US$6.2t	US$3.2t	US$133.4b	25.1x	46.8x	2x
Fri, 17 Oct 2025	US$6.0t	US$3.1t	US$140.4b	25.4x	42.5x	1.9x
Sun, 14 Sep 2025	US$5.7t	US$3.1t	US$137.6b	22.7x	41.6x	1.9x
Tue, 12 Aug 2025	US$5.4t	US$3.1t	US$139.8b	23.4x	38.5x	1.7x
Thu, 10 Jul 2025	US$5.5t	US$3.0t	US$127.9b	24.2x	43.2x	1.8x
Sat, 07 Jun 2025	US$5.4t	US$3.0t	US$127.2b	24x	42.7x	1.8x
Mon, 05 May 2025	US$5.6t	US$2.7t	US$126.2b	24.8x	44.1x	2x
Wed, 02 Apr 2025	US$5.7t	US$2.6t	US$81.6b	26.3x	69.4x	2.1x
Fri, 28 Feb 2025	US$5.8t	US$2.6t	US$79.7b	26.1x	73.3x	2.2x
Sun, 26 Jan 2025	US$6.0t	US$2.9t	US$85.5b	27.9x	70.7x	2.1x
Tue, 24 Dec 2024	US$5.8t	US$2.9t	US$78.3b	27.1x	73.5x	2x
Thu, 21 Nov 2024	US$5.9t	US$2.9t	US$77.0b	27.4x	76.7x	2x
Sat, 19 Oct 2024	US$6.2t	US$2.8t	US$58.7b	32.2x	105.7x	2.2x
Mon, 16 Sep 2024	US$6.3t	US$2.8t	US$60.0b	30.6x	105.4x	2.2x
Wed, 14 Aug 2024	US$6.0t	US$2.8t	US$55.4b	31.1x	108.3x	2.1x
Fri, 12 Jul 2024	US$6.2t	US$2.8t	US$62.2b	30.7x	100x	2.2x
Sun, 09 Jun 2024	US$6.2t	US$2.8t	US$63.6b	30x	97.5x	2.2x
Tue, 07 May 2024	US$6.1t	US$2.8t	US$64.3b	31.1x	94.4x	2.1x
Thu, 04 Apr 2024	US$6.2t	US$2.8t	US$84.0b	32.4x	73.6x	2.2x
Sat, 02 Mar 2024	US$6.2t	US$2.8t	US$85.1b	31.9x	73.3x	2.2x
Mon, 29 Jan 2024	US$6.3t	US$2.8t	US$90.7b	32x	69.7x	2.2x
Wed, 27 Dec 2023	US$6.2t	US$2.8t	US$91.5b	33x	67.4x	2.2x
Fri, 24 Nov 2023	US$5.8t	US$2.8t	US$91.2b	28.2x	63.8x	2.1x
Sun, 22 Oct 2023	US$5.7t	US$2.8t	US$99.6b	25.6x	57.7x	2.1x
Tue, 19 Sep 2023	US$6.0t	US$2.8t	US$98.6b	29.1x	60.8x	2.2x
Thu, 17 Aug 2023	US$6.1t	US$2.8t	US$99.2b	28.7x	61.9x	2.2x


US Market	2.74%
Healthcare	2.90%
Healthtech	13.81%
Biotech	6.54%
Life Sciences	3.59%
Pharma	3.23%
Medical Equipment	0.32%
Healthcare Services	-0.63%

Company	Last Price	7D	1Y	Valuation
LLY Eli Lilly	US$1.19k	5.7% +US$56.9b	86.7%	PE39.6x
AMGN Amgen	US$410.95	8.5% +US$17.7b	44.1%	PE25.4x
JNJ Johnson & Johnson	US$259.24	1.9% +US$11.6b	49.1%	PE29.7x
PFE Pfizer	US$26.76	7.0% +US$10.0b	8.9%	PE35.2x
NTRA Natera	US$322.10	19.1% +US$7.7b	105.1%	PS17.2x

Announcement • Aug 08

Zoetis Inc. Announces Executive Changes, Effective August 17, 2026

Zoetis Inc. announced the appointment of James (Jay) Saccaro as Executive Vice President and Chief Operating Officer, effective August 17, 2026. In this newly created role, Mr. Saccaro will lead Zoetis’ global finance function, shaping capital allocation, financial strategy, reporting and controls, and investor engagement and oversee Global Manufacturing and Supply to drive operational execution and performance. He will serve as the principal accounting officer of the Company. Mr. Saccaro, aged 53 joins Zoetis with extensive executive leadership experience at large-scale life sciences companies. He most recently served as Vice President and CFO at GE HealthCare, where he led key initiatives for the newly established public company, including designing processes and approaches across finance, accounting, new product planning, R&D prioritization, and capital allocation, and overseeing the Information Technology function. Previously, Mr. Saccaro spent over two decades at Baxter International Inc., where he held positions of increasing responsibility, culminating in his role as Executive Vice President and CFO for eight years. In that role, he oversaw all aspects of the company’s finance and information technology functions and led a number of high-impact enterprise initiatives, including a margin and cash flow improvement plan following the company's successful spin-off of Baxalta. Mr. Saccaro led business development for Baxter’s $5 billion Medication Delivery unit and played a key role in major M&A. Prior to GE HealthCare, Mr. Saccaro served as Executive Vice President and CFO at Baxter International Inc. from 2015 to 2023, where he played a key role in leading the company’s post-spin transformation, margin improvement initiatives and capital structure optimization. Prior to rejoining Baxter, Mr. Saccaro was Senior Vice President and CFO at Hill-Rom Corporation. He had previously served as the Corporate Vice President and Treasurer of Baxter from 2011 to 2013. Mr. Saccaro originally joined Baxter in 2002 as manager of strategy for the BioScience business, and over the years assumed positions of increasing responsibility, including vice president of financial planning and vice president of finance for the company’s operations in Europe, Middle East and Africa. He began his career in strategic planning at The Walt Disney Company. Mr. Saccaro received a bachelor’s degree in economics and master’s degree in engineering-economic systems from Stanford University. With Mr. Saccaro’s appointment, Wetteny Joseph will transition to an advisory role effective August 17, 2026. Mr. Joseph has agreed to remain with the company as a Special Advisor to the CEO on financial matters until early 2027 to facilitate a smooth transition.

Announcement • Aug 08

Elanco Animal Health Incorporated Receives FDA Emergency Use Authorization for CLiK™ Extra Wound Spray for Prevention of New World Screwworm in Livestock and Wildlife

Elanco Animal Health Incorporated had received Emergency Use Authorization (EUA) from the U.S. Food and Drug Administration (FDA) for CLiK Extra (dicyclanil topical suspension) wound spray for application on or around wounds to prevent infestations of New World screwworm (Cochliomyia hominivorax) larvae (myiasis) in sheep, cattle, goats, swine and camelids, as well as captive and captured cervids, American bison, bighorn sheep and Sonoran pronghorn. Livestock producers and veterinarians can apply Elanco's CLiK Extra spray on or around wounds, including those associated with birth and following surgical procedures, on animals to help prevent infestations of New World screwworm larvae before they occur. However, if a wound is already infested or an infestation develops after administration, alternative treatment will be necessary since CLiK Extra has not been shown to treat active New World screwworm infestations. Elanco's Negasunt Powder and Tanidil received emergency authorizations for prevention and treatment of New World screwworm earlier this year. These products will be available only through the U.S. Animal Plant Health and Inspection Service (APHIS) and its National Veterinary Stockpile as distributed in coordination with state animal health officials and federally recognized tribal agencies. Elanco also offers producers Catron IV, one of the few EPA registered products labeled for treatment against screwworm in a variety of livestock species. This screwworm and ear tick spray can help producers kill and control screwworm flies and maggots on beef and dairy cattle, sheep, goats, hogs and horses. The reentry of New World screwworm into the U.S., which was confirmed by the United States Department of Agriculture in June, poses a critical risk to farmers and ranchers, pet owners and the veterinary community. Unlike other pests, screwworm larvae aggressively consume the living flesh of their hosts, making them a danger to any warm-blooded animal, ranging from livestock and companion animals to wildlife and humans. CLiK Extra will be available for purchase by animal health professionals, livestock producers and those managing captive and captured wildlife through standard product channels. The U.S. Food and Drug Administration (FDA) has issued an Emergency Use Authorization (EUA) for the emergency use of the unapproved product CLiK Extra for application on or around wounds for the prevention of infestations caused by New World screwworm (Cochliomyia hominivorax) larvae (myiasis) in sheep, cattle, goats, swine, camelids, and the following captive and captured wildlife species: cervids, American bison, bighorn sheep, and Sonoran pronghorn. CLiK Extra is not approved for this use. Sheep, cattle, goats, swine, cervids, American bison, and bighorn sheep must not be slaughtered or harvested for human consumption within 86 days of treatment. For captured cervids, captured American bison, and captured bighorn sheep, use only when there is a reasonable certainty that the treated animal will not be slaughtered or harvested for human consumption within 86 days of treatment. Treated Sonoran pronghorn and camelids may not be used for human consumption. A milk discard time has not been established for this product. Do not use in animals producing milk for human consumption. A withdrawal period has not been established for this product in pre-ruminating calves. Treated calves and calves born to treated cows must not be processed for veal. CLiK Extra is authorized for this use only for the duration of the declaration that circumstances exist justifying the authorization of the emergency use of CLiK Extra under Section 564(b)(1) of the Federal Food, Drug, and Cosmetic Act (FD&C Act), 21 U.S.C. § 360bbb-3(b)(1), unless the declaration is terminated or the authorization is revoked sooner. Not for use in humans. Keep out of reach of children. Use disposable gloves and protective clothing when handling this product, and wash hands after use. In case of accidental ingestion, do not induce vomiting; seek medical advice immediately. For external use only. CLiK Extra will not treat an active NWS infestation. If a wound is already infested, or an infestation develops after CLiK Extra administration, alternative treatment for the animal is necessary. Treated animals should be kept away from surface waters for at least one hour after treatment due to serious risk to aquatic life. The U.S. Food and Drug Administration (FDA) has issued an Emergency Use Authorization (EUA) for the emergency use of the unapproved product Negasunt Powder for the prevention and treatment of infestations caused by New World screwworm (Cochliomyia hominivorax) larvae (myiasis) in cattle, swine, goats, sheep, horses, donkeys, domestic hybrid equids, and captive wild, exotic, and zoo mammals. Negasunt Powder is not approved for this use. For use by employees of federal, state, local, and federally recognized tribal agencies, and persons working under their authority and at their direction. Also for use by or on the order of a licensed veterinarian in NWS infested zones and adjacent surveillance zones as defined by the U.S. Department of Agriculture (USDA). Treated animals must not be slaughtered for human consumption within 28 days of the last treatment. A milk discard time has not been established for this product; do not use in animals producing milk for human consumption. A withdrawal period has not been established for this product in pre-ruminating calves; treated calves and calves born to treated cows must not be processed for veal. Do not use in horses intended for human consumption. Do not use in domestic indoor pets (e.g., dogs, cats, rodents, rabbits) nor in residences. Do not use in birds. Do not use in free-ranging wildlife.

U.S. Healthcare Sector Analysis

Sector Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

Latest News

Medline Faces Securities Probes After May FDA Warning and Guidance Cut

Forecast breakeven date moved forward to 2027

CEO & Chairman recently sold US$13m worth of stock

Zoetis Inc. Announces Executive Changes, Effective August 17, 2026

Insulet Corporation (NASDAQ:PODD) Just Reported, And Analysts Assigned A US$172 Price Target

Elanco Animal Health Incorporated Receives FDA Emergency Use Authorization for CLiK™ Extra Wound Spray for Prevention of New World Screwworm in Livestock and Wildlife

Chief Executive Officer of Optum notifies of intention to sell stock

INSM: Respiratory Franchise Execution Will Outweigh Index Removal And Launch Concerns

LLY: GLP-1 Leadership And Retatrutide Progress Will Drive Balanced Outlook

Insider notifies of intention to sell stock

Price target increased by 7.1% to US$223

CVS Health Triples Q2 Net Income and Expands Weight Loss Drug Access With Eli Lilly

BLLN: Future Testing Pipeline And Index Inclusion Will Shape Outlook

TMO: Fair Value View As End Market Recovery Counters Organic Growth Concerns

Danaher Corporation Announces CEO Changes, Effective October 1, 2026

PFE: Pipeline Readouts And Legal Overhang Will Shape Post Covid Earnings Trajectory