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U.S. Healthcare Sector Analysis

UpdatedJan 13, 2026
DataAggregated Company Financials
Companies1396
  • 7D1.1%
  • 3M11.5%
  • 1Y12.1%
  • YTD2.0%

The Healthcare industry is up 1.1% in the last week, with Eli Lilly up 3.8%. This means that the industry has gained 12% over the past year. 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
Tue, 13 Jan 2026US$6.6tUS$3.2tUS$136.3b26.6x48.4x2.1x
Thu, 11 Dec 2025US$6.3tUS$3.2tUS$134.1b26.2x46.9x2x
Sat, 08 Nov 2025US$6.0tUS$3.2tUS$132.2b25.5x45.4x1.9x
Mon, 06 Oct 2025US$6.0tUS$3.1tUS$137.8b24.7x43.8x2x
Wed, 03 Sep 2025US$5.7tUS$3.1tUS$137.6b23.3x41.4x1.8x
Fri, 01 Aug 2025US$5.5tUS$3.1tUS$127.6b23.4x43.1x1.8x
Sun, 29 Jun 2025US$5.5tUS$3.0tUS$127.5b24.8x43.1x1.8x
Tue, 27 May 2025US$5.3tUS$3.0tUS$126.9b22.6x41.7x1.7x
Thu, 24 Apr 2025US$5.3tUS$2.7tUS$98.1b24.8x54x2x
Sat, 22 Mar 2025US$5.7tUS$2.6tUS$81.8b26.6x70x2.2x
Mon, 17 Feb 2025US$5.8tUS$2.6tUS$82.1b26.7x70.8x2.2x
Wed, 15 Jan 2025US$5.8tUS$2.9tUS$78.9b28.1x73.9x2x
Fri, 13 Dec 2024US$6.0tUS$2.9tUS$77.6b28.6x77x2x
Sun, 10 Nov 2024US$6.3tUS$2.9tUS$76.0b28.3x82.8x2.2x
Tue, 08 Oct 2024US$6.2tUS$2.8tUS$60.1b30.3x102.4x2.2x
Thu, 05 Sep 2024US$6.3tUS$2.8tUS$60.4b31.6x104.2x2.2x
Sat, 03 Aug 2024US$6.4tUS$2.9tUS$63.3b31.8x100.9x2.2x
Mon, 01 Jul 2024US$6.2tUS$2.8tUS$62.2b30.5x99.3x2.2x
Wed, 29 May 2024US$6.1tUS$2.8tUS$63.8b30.3x96.3x2.2x
Fri, 26 Apr 2024US$6.0tUS$2.8tUS$72.2b30.4x82.7x2.1x
Sun, 24 Mar 2024US$6.2tUS$2.8tUS$82.2b31.8x75.9x2.2x
Tue, 20 Feb 2024US$6.3tUS$2.8tUS$82.6b30.1x75.9x2.2x
Thu, 18 Jan 2024US$6.3tUS$2.8tUS$90.8b32x69.5x2.2x
Sat, 16 Dec 2023US$6.1tUS$2.8tUS$91.5b32.3x66.5x2.2x
Mon, 13 Nov 2023US$5.7tUS$2.8tUS$91.1b26.3x62.2x2x
Wed, 11 Oct 2023US$5.9tUS$2.8tUS$98.3b26.9x60.2x2.1x
Fri, 08 Sep 2023US$6.1tUS$2.8tUS$98.6b26.9x62x2.2x
Sun, 06 Aug 2023US$6.1tUS$2.8tUS$100.3b28.8x60.8x2.2x
Tue, 04 Jul 2023US$6.0tUS$2.7tUS$110.3b26.4x54.4x2.2x
Thu, 01 Jun 2023US$5.8tUS$2.7tUS$110.5b24.6x52.6x2.1x
Sat, 29 Apr 2023US$6.0tUS$2.5tUS$118.5b24.7x50.4x2.4x
Mon, 27 Mar 2023US$5.7tUS$2.5tUS$124.2b23.6x45.7x2.3x
Wed, 22 Feb 2023US$5.8tUS$2.5tUS$131.0b24.4x44.4x2.4x
Fri, 20 Jan 2023US$6.0tUS$2.5tUS$135.9b23x43.9x2.4x
Price to Earnings Ratio

43.9x


Total Market Cap: US$6.0tTotal Earnings: US$135.9bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.1x202420252026
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 48.4x which is lower than its 3-year average PE of 65.1x.
  • 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 9.1% 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 Market0.88%
Healthcare1.12%
Pharma2.97%
Healthtech2.30%
Life Sciences0.78%
Biotech0.45%
Medical Equipment-0.04%
Healthcare Services-0.42%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 59.8x.
    • Analysts are expecting annual earnings growth of 17.3%, which is higher than its past year's earnings decline of 0.2% 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 56% 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
LLY Eli LillyUS$1.08k3.8%
+US$35.4b		35.6%PE52.6x
JNJ Johnson & JohnsonUS$209.722.6%
+US$13.0b		45.2%PE20.1x
RVMD Revolution MedicinesUS$117.1746.7%
+US$7.2b		194.2%PB14.2x
BMY Bristol-Myers SquibbUS$55.775.1%
+US$5.5b		0.7%PE18.8x
RGC Regencell Bioscience HoldingsUS$44.1133.5%
+US$5.5b		34,389.5%PB4487.8x

Latest News

ZTS
US$125.32
Zoetis
7D
-3.1%
1Y
-24.7%
BMY
US$55.77
Bristol-Myers Squibb
7D
5.1%
1Y
0.7%
RVMD
US$117.17
Revolution Medicines
7D
46.7%
1Y
194.2%
NTRA
US$235.45
Natera
7D
-5.3%
1Y
42.0%
ALNY
US$370.91
Alnylam Pharmaceuticals
7D
-8.7%
1Y
54.2%
JNJ
US$209.72
Johnson & Johnson
7D
2.6%
1Y
45.2%
LLY
US$1,081.00
Eli Lilly
7D
3.8%
1Y
35.6%

LLY: GLP-1 Pricing Deals Will Pressure Obesity Margins Going Forward

Analysts lifted their fair value estimate for Eli Lilly from US$650 to US$770, citing higher assumed profit margins, a slightly higher discount rate, updated expectations for revenue growth and future P/E, and continued Street support related to the obesity franchise, GLP-1 pricing agreements, and pipeline catalysts. Analyst Commentary Recent Street research around Eli Lilly has been dominated by views on obesity drugs, pricing agreements with the U.S. government, and the company’s expanding pipeline.
ABT
US$124.64
Abbott Laboratories
7D
-1.4%
1Y
10.1%

ABT: Exact Sciences Deal And Legal Wins Will Support Future Upside

Narrative Update Overview The updated analyst work on Abbott Laboratories reflects a small increase in the implied fair value to about $144.75. Analysts point to a tighter discount rate, steady growth and margin assumptions, and a blended view of recent price target changes that factor in medical devices momentum, the pending Exact Sciences deal, and reduced legal overhangs.
ISRG
US$572.75
Intuitive Surgical
7D
-3.4%
1Y
6.3%

ISRG: Dv5 Platform Rollout And Rising Procedure Volumes Will Drive 2026 Upside

Analysts have lifted their fair value estimate for Intuitive Surgical to US$740 from US$675, reflecting higher expected profit margins and a somewhat lower future P/E multiple. This change is supported by recent target increases tied to the da Vinci 5 rollout, stronger procedure trends and a more constructive view on healthcare into 2026.
MRK
US$109.19
Merck
7D
1.6%
1Y
8.1%

MRK: Cidara Flu Deal Will Likely Highlight Overstated Long Term Hopes

Narrative Update The analyst price target for Merck has moved higher to a range of about $105 to $135. Analysts point to sector re-ratings, recent upgrades to Outperform, and confidence in the company’s product pipeline and deal activity as key drivers of their updated views.
VRTX
US$460.59
Vertex Pharmaceuticals
7D
-1.7%
1Y
11.9%

VRTX: CF Durability And Kidney Pipeline Data Will Define Next Phase

Analysts have lifted their Vertex Pharmaceuticals fair value estimate by about US$11 to US$496.16, reflecting updated assumptions on revenue growth, margins and future P/E, as recent research highlights confidence in the durability of its cystic fibrosis franchise and potential upside from its broader pipeline. Analyst Commentary Recent Street research around Vertex Pharmaceuticals points to a generally constructive view, with most commentary focusing on the durability of the cystic fibrosis franchise, the breadth of the pipeline and how these factors feed into valuation targets and rating changes.
SYK
US$361.37
Stryker
7D
3.6%
1Y
0.1%

SYK: Orthopedics Strength And Robotics Adoption Will Support Long-Term Upside

Narrative Update: Stryker The analyst price target for Stryker has been adjusted slightly lower to reflect a fair value estimate of about $427.22. Analysts point to mixed but generally solid recent research that highlights compressed forward multiples, updated targets in the $390 to $453 range, and ongoing views of Stryker as a high quality large cap MedTech name, with attractive entry points and healthy procedure and CapEx trends into 2026.
CI
US$276.02
Cigna Group
7D
-2.8%
1Y
-2.3%

CI: Massive Share Buyback And Clinic Expansion Will Support Future Earnings Upside

Analysts have slightly reduced their price target for Cigna Group, trimming fair value by about $0.69 to $325.57 as they factor in a more moderate revenue growth outlook, along with a small improvement in expected profit margins and future P/E assumptions. What's in the News Hankook Tire America Corp.
AMGN
US$325.54
Amgen
7D
-1.4%
1Y
21.9%

Amgen (NASDAQ:AMGN) Is Increasing Its Dividend To $2.52

Jan 07
Amgen (NASDAQ:AMGN) Is Increasing Its Dividend To $2.52
RGC
US$44.11
Regencell Bioscience Holdings
7D
33.5%
1Y
34,389.5%
DHR
US$239.00
Danaher
7D
1.5%
1Y
-0.4%

DHR: Share Repurchases And Diagnostics Resilience Will Support Premium Multiple

Analysts have made a modest upward adjustment to their fair value estimate for Danaher to about US$259 from about US$258, reflecting slightly higher assumed profit margins and P/E, even as they highlight tempered expectations for 2025 and 2026 growth, ongoing uncertainty in China, and questions around how durable diagnostics demand will be. Analyst Commentary Analysts are split on Danaher, with some focusing on the valuation premium and others on the company’s ability to eventually reconnect with its historical growth profile.