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U.S. Healthcare Sector Analysis

UpdatedFeb 20, 2026
DataAggregated Company Financials
Companies1388
  • 7D1.4%
  • 3M1.7%
  • 1Y6.7%
  • YTD0.3%

In the last week, the Healthcare industry is up 1.4%, with Intuitive Surgical leading the way with a 4.4% gain. This takes the industry's 12 month performance to a gain of 6.7%. As for the next few years, earnings are expected to grow by 16% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 20 Feb 2026US$6.6tUS$3.3tUS$128.0b26.4x51.4x2x
Sun, 18 Jan 2026US$6.5tUS$3.2tUS$136.3b27.3x48x2x
Tue, 16 Dec 2025US$6.4tUS$3.2tUS$134.0b26.1x47.8x2x
Thu, 13 Nov 2025US$6.2tUS$3.2tUS$133.3b26.5x46.7x2x
Sat, 11 Oct 2025US$6.0tUS$3.1tUS$137.9b24.5x43.7x1.9x
Mon, 08 Sep 2025US$5.7tUS$3.1tUS$137.6b23.1x41.6x1.9x
Wed, 06 Aug 2025US$5.5tUS$3.1tUS$135.3b23.1x40.5x1.8x
Fri, 04 Jul 2025US$5.6tUS$3.0tUS$127.9b24.3x43.4x1.8x
Sun, 01 Jun 2025US$5.4tUS$3.0tUS$127.3b23.1x42.3x1.8x
Tue, 29 Apr 2025US$5.4tUS$2.7tUS$118.5b25.1x45.6x2x
Thu, 27 Mar 2025US$5.7tUS$2.6tUS$81.8b26.5x69.8x2.2x
Sat, 22 Feb 2025US$5.8tUS$2.6tUS$80.4b26.6x72.5x2.2x
Mon, 20 Jan 2025US$5.9tUS$2.9tUS$79.0b27.7x74.1x2x
Wed, 18 Dec 2024US$5.9tUS$2.9tUS$77.7b27.9x75.3x2x
Fri, 15 Nov 2024US$6.2tUS$2.9tUS$76.3b27.8x81.2x2.1x
Sun, 13 Oct 2024US$6.2tUS$2.8tUS$60.0b29.8x104x2.2x
Tue, 10 Sep 2024US$6.2tUS$2.8tUS$60.4b30.5x103.2x2.2x
Thu, 08 Aug 2024US$6.2tUS$2.9tUS$60.3b29.8x103.2x2.2x
Sat, 06 Jul 2024US$6.1tUS$2.8tUS$62.2b30.2x97.8x2.2x
Mon, 03 Jun 2024US$6.1tUS$2.8tUS$64.0b29.9x95.2x2.2x
Wed, 01 May 2024US$6.0tUS$2.8tUS$68.3b31.3x87.9x2.1x
Fri, 29 Mar 2024US$6.3tUS$2.8tUS$82.4b32.4x77x2.3x
Sun, 25 Feb 2024US$6.3tUS$2.8tUS$85.5b31.1x74x2.3x
Tue, 23 Jan 2024US$6.4tUS$2.8tUS$90.8b32.7x69.9x2.2x
Thu, 21 Dec 2023US$6.1tUS$2.8tUS$91.5b31.8x67.2x2.2x
Sat, 18 Nov 2023US$5.8tUS$2.8tUS$90.7b27.8x63.6x2x
Mon, 16 Oct 2023US$5.9tUS$2.8tUS$98.9b25.7x59.3x2.1x
Wed, 13 Sep 2023US$6.1tUS$2.8tUS$98.6b27.6x61.5x2.2x
Fri, 11 Aug 2023US$6.2tUS$2.8tUS$99.3b28.8x62.1x2.2x
Sun, 09 Jul 2023US$5.9tUS$2.7tUS$110.3b26x53.1x2.1x
Tue, 06 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Thu, 04 May 2023US$6.0tUS$2.7tUS$116.9b24.4x51.5x2.2x
Sat, 01 Apr 2023US$5.8tUS$2.5tUS$121.8b24.2x47.4x2.3x
Mon, 27 Feb 2023US$5.7tUS$2.5tUS$123.2b24.4x46.5x2.3x
Price to Earnings Ratio

46.5x


Total Market Cap: US$5.7tTotal Earnings: US$123.2bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.3x202420252026
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 51.4x which is lower than its 3-year average PE of 65.3x.
  • 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 9.9% 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 Market0.64%
Healthcare1.37%
Healthtech6.55%
Medical Equipment2.57%
Biotech2.40%
Healthcare Services1.50%
Life Sciences1.12%
Pharma0.063%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry, which is trading close to its 3-year average PE ratio of 56.2x.
    • Analysts are expecting annual earnings growth of 16.5%, which is higher than its past year's earnings growth of 7.4% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 22% over the next 5 years.
  • However this is lower than its past earnings growth rate of 59% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 11% 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
ISRG Intuitive SurgicalUS$499.534.4%
+US$7.4b		-17.6%PE62.1x
MRK MerckUS$121.862.2%
+US$6.5b		39.0%PE16.6x
JNJ Johnson & JohnsonUS$246.911.0%
+US$5.7b		54.6%PE22.2x
AMGN AmgenUS$375.502.5%
+US$5.2b		26.0%PE26.3x
UNH UnitedHealth GroupUS$289.932.0%
+US$5.0b		-42.3%PE21.8x

Latest News

JNJ
US$246.91
Johnson & Johnson
7D
1.0%
1Y
54.6%
ABBV
US$224.35
AbbVie
7D
-1.4%
1Y
11.7%
LLY
US$1,023.22
Eli Lilly
7D
-1.4%
1Y
17.2%
MRK
US$121.86
Merck
7D
2.2%
1Y
39.0%
DXCM
US$72.27
DexCom
7D
11.0%
1Y
-19.1%

The Strong Earnings Posted By DexCom (NASDAQ:DXCM) Are A Good Indication Of The Strength Of The Business

Feb 19
The Strong Earnings Posted By DexCom (NASDAQ:DXCM) Are A Good Indication Of The Strength Of The Business
BBIO
US$70.72
BridgeBio Pharma
7D
-7.0%
1Y
92.1%
GILD
US$151.12
Gilead Sciences
7D
-0.5%
1Y
37.3%
MRNA
US$49.70
Moderna
7D
23.9%
1Y
47.3%
MDT
US$97.58
Medtronic
7D
-3.3%
1Y
11.0%
DHR
US$211.25
Danaher
7D
-1.7%
1Y
1.6%

DHR: Masimo Deal And Higher Future P/E Will Support Premium Multiple

Danaher’s updated analyst price target edges slightly lower to about $265, as analysts balance modest tweaks to revenue growth, profit margin and P/E assumptions with a broadly supportive run of recent target increases across the Street. Analyst Commentary Recent Street research on Danaher is clustered around higher price targets, with several bullish analysts lifting their numbers by single digit to low double digit dollar amounts.
PFE
US$26.86
Pfizer
7D
-2.2%
1Y
3.7%
UNH
US$289.93
UnitedHealth Group
7D
2.0%
1Y
-42.3%

UnitedHealth Group's Future Revenue Grows by 3.59%: What Will It Mean?

UnitedHealth (UNH): A Data Giant Hidden in an Insurer's Crisis Investment Narrative – February 2026 Price Target (12m): $395.00 (+35% upside) Rating: Strong Buy (Contrarian) 1. The Core Thesis: The "Optum" Mispricing The market is currently valuing UnitedHealth through the narrow lens of a traditional insurer struggling with Medicare Advantage (MA) rate cuts and CMS regulatory headwinds for 2027.
AMGN
US$375.50
Amgen
7D
2.5%
1Y
26.0%

AMGN: Long Patent Expiries And Heavier Spending Will Pressure Future Earnings

Analysts have lifted their price targets on Amgen by about $12 to reflect updated views on fair value, profitability, and future P/E assumptions, while also factoring in a higher discount rate and lower projected revenue growth. Analyst Commentary Recent research on Amgen points to a split view, with several firms lifting price targets while others are turning more cautious.
ALNY
US$339.37
Alnylam Pharmaceuticals
7D
10.0%
1Y
35.2%
HCA
US$528.66
HCA Healthcare
7D
-1.2%
1Y
64.4%
ISRG
US$499.53
Intuitive Surgical
7D
4.4%
1Y
-17.6%

ISRG: Future Procedure And Platform Execution Will Test Premium Multiple Assumptions

Analysts nudged their price targets higher on Intuitive Surgical, with a modest fair value move to about $468 per share. They recalibrated assumptions around slightly lower revenue growth, higher profit margins, and a somewhat lower future P/E multiple, following a mix of recent target hikes and trims across the Street.