Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Healthcare Sector Analysis

UpdatedApr 26, 2026
DataAggregated Company Financials
Companies1403
  • 7D-3.0%
  • 3M-7.9%
  • 1Y8.1%
  • YTD-5.9%

Over the last 7 days, the Healthcare industry has dropped 3.0%, driven by a pullback from Eli Lilly of 4.6%. In contrast, UnitedHealth Group has gained 9.3%. This takes the industry's 12 month performance to a gain of 8.1%. As for the next few years, earnings are expected to grow by 17% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 26 Apr 2026US$6.2tUS$3.3tUS$121.4b24x50.7x1.9x
Tue, 24 Mar 2026US$6.1tUS$3.3tUS$124.7b22.4x48.7x1.9x
Thu, 19 Feb 2026US$6.5tUS$3.3tUS$128.1b26.6x51.1x2x
Sat, 17 Jan 2026US$6.6tUS$3.2tUS$136.3b27.3x48.3x2.1x
Mon, 15 Dec 2025US$6.4tUS$3.2tUS$134.0b26.3x47.8x2x
Wed, 12 Nov 2025US$6.1tUS$3.2tUS$133.6b26.4x45.6x1.9x
Fri, 10 Oct 2025US$6.1tUS$3.1tUS$138.0b24.3x44.3x2x
Sun, 07 Sep 2025US$5.7tUS$3.1tUS$137.6b23.1x41.5x1.8x
Tue, 05 Aug 2025US$5.4tUS$3.1tUS$127.4b23.2x42.4x1.8x
Thu, 03 Jul 2025US$5.6tUS$3.0tUS$127.8b24x43.6x1.8x
Sat, 31 May 2025US$5.4tUS$3.0tUS$127.3b23.1x42.3x1.8x
Mon, 28 Apr 2025US$5.4tUS$2.7tUS$118.5b24.9x45.6x2x
Wed, 26 Mar 2025US$5.8tUS$2.6tUS$81.7b27.1x70.7x2.2x
Fri, 21 Feb 2025US$5.9tUS$2.6tUS$80.9b26.7x72.4x2.2x
Sun, 19 Jan 2025US$5.9tUS$2.9tUS$79.0b27.7x74.1x2x
Tue, 17 Dec 2024US$5.9tUS$2.9tUS$77.7b28.4x76x2x
Thu, 14 Nov 2024US$6.2tUS$2.9tUS$76.4b27.9x81.4x2.1x
Sat, 12 Oct 2024US$6.2tUS$2.8tUS$60.0b29.8x103x2.2x
Mon, 09 Sep 2024US$6.2tUS$2.8tUS$60.4b30.5x102.4x2.2x
Wed, 07 Aug 2024US$6.2tUS$2.9tUS$63.2b30.3x97.8x2.2x
Fri, 05 Jul 2024US$6.1tUS$2.8tUS$62.2b29.9x97.7x2.2x
Sun, 02 Jun 2024US$6.1tUS$2.8tUS$64.0b29.9x95.2x2.2x
Tue, 30 Apr 2024US$6.0tUS$2.8tUS$68.2b31.5x87.7x2.1x
Thu, 28 Mar 2024US$6.3tUS$2.8tUS$82.3b32.4x77.1x2.3x
Sat, 24 Feb 2024US$6.3tUS$2.8tUS$85.6b31.1x73.9x2.3x
Mon, 22 Jan 2024US$6.3tUS$2.8tUS$90.8b32.4x69.5x2.2x
Wed, 20 Dec 2023US$6.1tUS$2.8tUS$91.5b32.7x67.1x2.2x
Fri, 17 Nov 2023US$5.8tUS$2.8tUS$90.4b27.7x64.1x2.1x
Sun, 15 Oct 2023US$5.9tUS$2.8tUS$98.8b25.7x59.3x2.1x
Tue, 12 Sep 2023US$6.1tUS$2.8tUS$98.6b27.8x61.5x2.2x
Thu, 10 Aug 2023US$6.2tUS$2.8tUS$99.6b28.2x62.2x2.2x
Sat, 08 Jul 2023US$5.9tUS$2.7tUS$110.3b26x53.1x2.1x
Mon, 05 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Wed, 03 May 2023US$6.0tUS$2.7tUS$117.7b24.2x50.9x2.2x
Price to Earnings Ratio

50.9x


Total Market Cap: US$6.0tTotal Earnings: US$117.7bTotal 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 50.7x 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.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 6.4% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

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

US Market0.39%
Healthcare-3.02%
Healthcare Services3.51%
Healthtech-2.71%
Medical Equipment-2.92%
Biotech-3.58%
Pharma-3.92%
Life Sciences-8.22%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 55.3x.
    • Analysts are expecting annual earnings growth of 15.7%, which is higher than its past year's earnings growth of 7.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 23% over the next 5 years.
  • However this is lower than its past earnings growth rate of 50% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 13% 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
UNH UnitedHealth GroupUS$354.929.3%
+US$27.7b		-15.2%PE26.8x
ISRG Intuitive SurgicalUS$482.222.8%
+US$4.1b		-6.3%PE57.3x
ELV Elevance HealthUS$344.766.7%
+US$3.9b		-18.2%PE14.3x
WST West Pharmaceutical ServicesUS$306.1611.8%
+US$1.9b		42.7%PE39.9x
EW Edwards LifesciencesUS$84.153.9%
+US$1.8b		10.7%PE45.1x

Latest News

HCA
US$432.46
HCA Healthcare
7D
-11.4%
1Y
31.9%
WST
US$306.16
West Pharmaceutical Services
7D
11.8%
1Y
42.7%
JNJ
US$227.50
Johnson & Johnson
7D
-2.9%
1Y
47.2%
HUM
US$215.23
Humana
7D
4.9%
1Y
-18.6%
ABT
US$91.13
Abbott Laboratories
7D
-5.9%
1Y
-29.3%
UNH
US$354.92
UnitedHealth Group
7D
9.3%
1Y
-15.2%
EW
US$84.15
Edwards Lifesciences
7D
3.9%
1Y
10.7%
TMO
US$469.71
Thermo Fisher Scientific
7D
-10.8%
1Y
10.7%
MOH
US$175.94
Molina Healthcare
7D
18.1%
1Y
-44.1%
ELV
US$344.76
Elevance Health
7D
6.7%
1Y
-18.2%
ABBV
US$198.71
AbbVie
7D
-4.6%
1Y
6.8%

ABBV: Future Returns Will Rely On Immunology Expansion And Operating Leverage Execution

Analysts made a small upward adjustment to AbbVie’s fair value estimate to about $249. The modest change reflects a mix of slightly higher assumed discount rates and future P/E multiples, alongside recent shifts in Street price targets, including both raises and trims from firms such as Piper Sandler, Guggenheim, Cantor Fitzgerald, Evercore ISI, Citi and UBS, as well as fresh bullish initiations from Canaccord, RBC Capital and Barclays.
ISRG
US$482.22
Intuitive Surgical
7D
2.8%
1Y
-6.3%
DHR
US$177.25
Danaher
7D
-9.0%
1Y
-10.1%

Danaher Q1 2026 Earnings Update

Apr 22
MRK
US$111.90
Merck
7D
-6.0%
1Y
35.2%
LLY
US$883.96
Eli Lilly
7D
-4.6%
1Y
-0.07%

LLY: Obesity And Diabetes Platform Will Support Premium Positioning Beyond 2030

Analysts have slightly raised their average price targets on Eli Lilly in recent weeks, citing supportive trial updates in obesity and diabetes, favorable comparisons to competing GLP-1 therapies, and regulatory progress that they say supports high but unchanged fair value estimates of around $1,500. Analyst Commentary Recent Street research around Eli Lilly has been active, with a cluster of price target moves, rating changes, and product specific notes that give you a clearer sense of how professionals are framing the risk and reward.
CNC
US$41.82
Centene
7D
9.6%
1Y
-27.5%

CNC: Medicaid Margins In 2026 Will Underpin Future Earnings Power

Centene's updated analyst price targets show only a modest reduction in implied fair value to about $60.51, as analysts factor in slightly better revenue growth and margins while tempering expectations with lower assumed P/E multiples and continued concern about margin pressure and exchange and Medicaid visibility. Analyst Commentary Recent research on Centene points to a mixed backdrop, but with a clear group of bullish analysts highlighting valuation support, execution on margins, and potential growth from policy and rate decisions.