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U.S. Healthcare Sector Analysis

UpdatedMay 09, 2026
DataAggregated Company Financials
Companies1408
  • 7D-0.6%
  • 3M-6.9%
  • 1Y12.4%
  • YTD-6.2%

The Healthcare is pretty flat in the last 7 days, but Eli Lilly has stood out, gaining 4.3%. The past year has been better, since the industry has gained 12% in that time. As for the next few years, earnings are expected to grow by 18% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 09 May 2026US$6.2tUS$3.3tUS$123.8b22.9x50.2x1.9x
Mon, 06 Apr 2026US$6.2tUS$3.3tUS$127.9b22.2x48.4x1.9x
Wed, 04 Mar 2026US$6.6tUS$3.3tUS$126.5b25.3x52x2x
Fri, 30 Jan 2026US$6.5tUS$3.2tUS$126.3b27.2x51.4x2x
Sun, 28 Dec 2025US$6.6tUS$3.2tUS$135.2b26.5x48.5x2.1x
Tue, 25 Nov 2025US$6.4tUS$3.2tUS$133.7b25.9x47.5x2x
Thu, 23 Oct 2025US$6.0tUS$3.1tUS$140.7b25.3x43x1.9x
Sat, 20 Sep 2025US$5.7tUS$3.1tUS$137.6b23.9x41.6x1.8x
Mon, 18 Aug 2025US$5.7tUS$3.1tUS$136.9b23.2x41.3x1.8x
Wed, 16 Jul 2025US$5.5tUS$3.0tUS$127.9b23.4x43.4x1.8x
Fri, 13 Jun 2025US$5.6tUS$3.0tUS$127.2b24.1x43.6x1.8x
Sun, 11 May 2025US$5.4tUS$3.0tUS$126.6b24.2x42.4x1.8x
Tue, 08 Apr 2025US$5.2tUS$2.6tUS$82.2b24.9x63.5x2x
Thu, 06 Mar 2025US$5.8tUS$2.6tUS$79.2b27.5x73.3x2.2x
Sat, 01 Feb 2025US$6.2tUS$2.9tUS$85.1b27.8x72.5x2.1x
Mon, 30 Dec 2024US$5.8tUS$2.9tUS$78.3b26.8x74.4x2x
Wed, 27 Nov 2024US$6.1tUS$2.9tUS$77.1b28.4x79.1x2.1x
Fri, 25 Oct 2024US$6.1tUS$2.8tUS$58.7b29.5x104.2x2.2x
Sun, 22 Sep 2024US$6.3tUS$2.8tUS$60.1b30.1x104.6x2.2x
Tue, 20 Aug 2024US$6.2tUS$2.8tUS$56.0b32.1x109.9x2.2x
Thu, 18 Jul 2024US$6.4tUS$2.8tUS$61.0b31.8x105.1x2.3x
Sat, 15 Jun 2024US$6.2tUS$2.8tUS$62.4b29.9x99.4x2.2x
Mon, 13 May 2024US$6.1tUS$2.8tUS$64.0b30.6x95.5x2.2x
Wed, 10 Apr 2024US$6.1tUS$2.8tUS$85.3b32.7x72x2.2x
Fri, 08 Mar 2024US$6.3tUS$2.8tUS$83.1b32.2x75.9x2.3x
Sun, 04 Feb 2024US$6.4tUS$2.8tUS$76.5b31.9x84.1x2.3x
Tue, 02 Jan 2024US$6.2tUS$2.8tUS$91.5b32.8x68.1x2.2x
Thu, 30 Nov 2023US$5.8tUS$2.8tUS$91.4b28.2x63.7x2.1x
Sat, 28 Oct 2023US$5.5tUS$2.8tUS$99.5b24.1x55.6x2x
Mon, 25 Sep 2023US$5.9tUS$2.8tUS$98.6b27.7x60x2.1x
Wed, 23 Aug 2023US$6.1tUS$2.8tUS$99.0b28.1x61.6x2.2x
Fri, 21 Jul 2023US$6.1tUS$2.7tUS$110.8b26.6x55x2.2x
Sun, 18 Jun 2023US$6.0tUS$2.7tUS$109.9b26.4x54.8x2.2x
Tue, 16 May 2023US$6.0tUS$2.7tUS$114.7b24.7x52.4x2.2x
Price to Earnings Ratio

52.4x


Total Market Cap: US$6.0tTotal Earnings: US$114.7bTotal 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 50.2x 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 2.6% per year over the last three years.
  • Revenues for these companies have grown 6.8% 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 Market2.14%
Healthcare-0.56%
Healthcare Services2.63%
Life Sciences1.79%
Biotech1.19%
Healthtech-0.18%
Pharma-1.94%
Medical Equipment-3.43%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 55.0x.
    • Analysts are expecting annual earnings growth of 16.2%, which is higher than its past year's earnings growth of 9.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 25% over the next 5 years.
  • However this is lower than its past earnings growth rate of 43% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 14% 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$974.964.3%
+US$36.0b		29.7%PE34.4x
MRK MerckUS$112.302.9%
+US$7.7b		44.6%PE31x
CVS CVS HealthUS$87.364.9%
+US$4.7b		28.8%PE38x
WAT WatersUS$350.4913.3%
+US$4.1b		-0.1%PE76.5x
GILD Gilead SciencesUS$134.062.5%
+US$4.0b		36.6%PE19.6x

Latest News

ZTS
US$87.31
Zoetis
7D
-24.1%
1Y
-46.0%
Seeking Alpha • 2h

Zoetis: Significant Patience Required

Summary Zoetis (ZTS) faces significant competitive and pricing headwinds, with shares down 37% YTD and trading at a five-year low. ZTS reported rare misses on both top and bottom lines, driven by US companion animal weakness, generics pressure, and reduced clinic visits. Guidance for 2026 remains intact, with revenue of $9.68–$9.96B and adjusted EPS of $6.85–$7.00, supported by upcoming product catalysts. I maintain a hold rating; ZTS trades at 12.5x forward earnings, and a 2.6% yield, but further downside is possible before a compelling entry emerges. Read the full article on Seeking Alpha
SYK
US$294.23
Stryker
7D
-6.6%
1Y
-23.1%
VTRS
US$17.39
Viatris
7D
16.4%
1Y
91.3%
WAT
US$350.49
Waters
7D
13.3%
1Y
-0.1%
AMGN
US$329.06
Amgen
7D
-5.0%
1Y
21.0%
MCK
US$754.76
McKesson
7D
-7.4%
1Y
9.3%
ONC
US$317.00
BeOne Medicines
7D
7.4%
1Y
34.4%
Analysis Article • May 08

Results: BeOne Medicines AG Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, BeOne Medicines AG ( NASDAQ:ONC ) just kicked off its latest quarterly results with some very strong...
CVS
US$87.36
CVS Health
7D
4.9%
1Y
28.8%
Seeking Alpha • May 08

CVS Health: Rapidly Improving Metrics And Promising Recovery Deserve Reiterated Buy Rating

Summary The +2.48% YoY payment hike for 2027 Medicare Advantage plans and Aetna's higher star rating support CVS Health's recovery prospects toward 2028 target margins. This is significantly aided by the prior premium re-pricing and the ongoing operational efficiencies, as observed in their FQ1 '26 MBR of 84.6% nearing 2019 levels. Readers must not forget their vertically integrated PBM and pharmacy capabilities, allowing them to drive lower medical costs and improved operational efficiencies. CVS trades at a discounted P/E of 11.27x (against the sector median of 17.4x) while offering a dividend yield of 3.3% and excellent upside potential to my bull-case LTPT of $126.50. Given the overbought technical indicators after the recent rally, I urge readers to wait for a moderate correction nearer to the base support line and the 50/100/200 DMAs around the $76s. Read the full article on Seeking Alpha
IQV
US$178.64
IQVIA Holdings
7D
12.8%
1Y
16.5%
Analysis Article • May 08

IQVIA Holdings Inc. (NYSE:IQV) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a pretty great week for IQVIA Holdings Inc. ( NYSE:IQV ) shareholders, with its shares surging 13% to US$179...
COR
US$255.66
Cencora
7D
-17.0%
1Y
-9.9%
Narrative Update • May 08

COR: Share Repurchases And CFO Transition Will Support Long Term Upside

Analysts now estimate Cencora’s fair value at about $373, down from roughly $403. This reflects slightly higher assumed discount rates and a lower future P/E multiple, partly offset by a marginally stronger profit margin profile in their updated models.
LLY
US$974.96
Eli Lilly
7D
4.3%
1Y
29.7%
Narrative Update • May 07

LLY: Obesity Pricing Pressure And Safety Headlines Will Shape Future Franchise Economics

Analysts have raised Eli Lilly's implied fair value from $883.99 to $899.73 after several firms increased their price targets by $1 to $50, citing confidence in the obesity and diabetes pipeline, Foundayo's regulatory progress, and clarifications around recent safety concerns. Analyst Commentary Recent research on Eli Lilly reflects a mix of enthusiasm around obesity and diabetes assets and a clearer, more cautious minority that is focused on how much optimism is already reflected in the stock.
JNJ
US$222.51
Johnson & Johnson
7D
-3.2%
1Y
42.9%
ABBV
US$202.71
AbbVie
7D
-4.1%
1Y
9.2%
GILD
US$134.06
Gilead Sciences
7D
2.5%
1Y
36.6%
MRK
US$112.30
Merck
7D
2.9%
1Y
44.6%
BMY
US$56.25
Bristol-Myers Squibb
7D
-7.2%
1Y
20.0%
Narrative Update • May 03

BMY: Upcoming Late Stage Readouts Will Drive Potential Re Rating Opportunity

Analysts have made only a modest adjustment to their Bristol-Myers Squibb outlook, with small changes to revenue and profitability assumptions feeding into updated price targets that cluster in a wide range from about $60 to $75. This reflects differing views on the pipeline and upcoming Milvexian data as potential drivers for the story.