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

U.S. Healthcare Sector Analysis

UpdatedApr 28, 2026
DataAggregated Company Financials
Companies1398
  • 7D-2.6%
  • 3M-6.6%
  • 1Y7.4%
  • YTD-6.3%

Over the last 7 days, the Healthcare industry has dropped 2.6%, driven by a pullback from Eli Lilly of 5.6%. Meanwhile, UnitedHealth Group actually outperformed within the industry, gaining 9.6% in the last week. This takes the industry's 12 month performance to a gain of 7.4%. 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
Wed, 29 Apr 2026US$6.1tUS$3.3tUS$121.4b23.6x50.6x1.9x
Fri, 27 Mar 2026US$6.1tUS$3.3tUS$126.1b22.4x48.7x1.9x
Sun, 22 Feb 2026US$6.6tUS$3.3tUS$128.1b26.6x51.1x2x
Tue, 20 Jan 2026US$6.5tUS$3.2tUS$136.3b27.3x48x2x
Thu, 18 Dec 2025US$6.4tUS$3.2tUS$135.3b26.1x47.5x2x
Sat, 15 Nov 2025US$6.3tUS$3.2tUS$134.2b26.2x46.7x2x
Mon, 13 Oct 2025US$5.9tUS$3.1tUS$137.9b24.5x42.9x1.9x
Wed, 10 Sep 2025US$5.8tUS$3.1tUS$137.6b22.9x42x1.9x
Fri, 08 Aug 2025US$5.4tUS$3.1tUS$135.6b23.2x39.7x1.7x
Sun, 06 Jul 2025US$5.6tUS$3.0tUS$127.9b24.3x43.4x1.8x
Tue, 03 Jun 2025US$5.4tUS$3.0tUS$127.2b23.6x42.4x1.8x
Thu, 01 May 2025US$5.4tUS$2.7tUS$116.9b25.5x46.6x2x
Sat, 29 Mar 2025US$5.7tUS$2.6tUS$81.5b26x69.7x2.1x
Mon, 24 Feb 2025US$5.8tUS$2.6tUS$80.5b26.6x72.4x2.2x
Wed, 22 Jan 2025US$5.9tUS$2.9tUS$78.9b28.4x74.2x2x
Fri, 20 Dec 2024US$5.7tUS$2.9tUS$78.2b27.4x73.2x2x
Sun, 17 Nov 2024US$5.9tUS$2.9tUS$76.6b27.6x77.4x2x
Tue, 15 Oct 2024US$6.2tUS$2.8tUS$60.0b29.8x104x2.2x
Thu, 12 Sep 2024US$6.3tUS$2.8tUS$60.5b29.9x103.5x2.2x
Sat, 10 Aug 2024US$6.0tUS$2.8tUS$55.0b30.4x108.8x2.1x
Mon, 08 Jul 2024US$6.1tUS$2.8tUS$62.2b30.2x98.5x2.2x
Wed, 05 Jun 2024US$6.1tUS$2.8tUS$64.1b30.3x95.9x2.2x
Fri, 03 May 2024US$6.0tUS$2.8tUS$67.3b31.4x89.6x2.1x
Sun, 31 Mar 2024US$6.3tUS$2.8tUS$83.9b32.9x75.5x2.3x
Tue, 27 Feb 2024US$6.3tUS$2.8tUS$85.5b30.9x73.9x2.3x
Thu, 25 Jan 2024US$6.4tUS$2.8tUS$91.5b31.9x69.4x2.2x
Sat, 23 Dec 2023US$6.2tUS$2.8tUS$91.6b32.6x67.4x2.2x
Mon, 20 Nov 2023US$5.8tUS$2.8tUS$90.7b27.8x63.6x2x
Wed, 18 Oct 2023US$5.9tUS$2.8tUS$98.9b26.2x59.8x2.1x
Fri, 15 Sep 2023US$6.0tUS$2.8tUS$98.6b28.9x61.3x2.2x
Sun, 13 Aug 2023US$6.2tUS$2.8tUS$99.1b28.6x62.6x2.2x
Tue, 11 Jul 2023US$5.9tUS$2.7tUS$110.3b26.2x53.6x2.2x
Thu, 08 Jun 2023US$5.9tUS$2.7tUS$110.4b25.6x53.8x2.2x
Sat, 06 May 2023US$6.0tUS$2.7tUS$114.0b25x53x2.2x
Price to Earnings Ratio

53x


Total Market Cap: US$6.0tTotal Earnings: US$114.0bTotal 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 50.6x 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 2.8% per year over the last three years.
  • Revenues for these companies have grown 6.3% 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 Market0.72%
Healthcare-2.64%
Healthcare Services4.73%
Medical Equipment-2.18%
Biotech-3.11%
Healthtech-3.40%
Pharma-3.97%
Life Sciences-8.11%
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 15.8%, 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$366.776.0%
+US$18.9b		-10.4%PE27.7x
ELV Elevance HealthUS$362.7410.6%
+US$6.7b		-12.3%PE15x
CNC CenteneUS$49.5726.6%
+US$5.1b		-16.4%PS0.1x
ISRG Intuitive SurgicalUS$466.643.4%
+US$5.0b		-9.4%PE55.5x
CVS CVS HealthUS$80.984.7%
+US$4.6b		24.5%PE58.7x

Latest News

JNJ
US$227.79
Johnson & Johnson
7D
0.7%
1Y
46.1%
ABBV
US$197.69
AbbVie
7D
-3.6%
1Y
2.2%
GILD
US$129.23
Gilead Sciences
7D
-3.0%
1Y
24.0%
CNC
US$49.57
Centene
7D
26.6%
1Y
-16.4%
LLY
US$874.00
Eli Lilly
7D
-3.2%
1Y
-1.3%
UNH
US$366.77
UnitedHealth Group
7D
6.0%
1Y
-10.4%

UNH: Medicare And Regulatory Reset Will Shape Multi Year Earnings Trajectory

UnitedHealth Group's updated analyst price target has shifted to a fair value estimate of $386.08, with analysts citing recent upgrades, higher Street targets, and modestly adjusted assumptions for revenue growth, profit margins, and future P/E as key supports for the revised assessment. Analyst Commentary Recent Street research on UnitedHealth Group shows a mix of optimism and caution, with several firms adjusting ratings and price targets in both directions over the past few months.
HCA
US$431.92
HCA Healthcare
7D
-8.3%
1Y
26.8%

HCA: Georgia Medicaid SDP Support Will Shape Future Upside

The analyst price target for HCA Healthcare has been trimmed by $8, reflecting recent downward revisions from several firms, along with updated assumptions for revenue growth, profit margins, and a slightly higher future P/E multiple, as analysts balance mixed target moves with evolving views on AI driven efficiency and Medicaid tailwinds. Analyst Commentary Recent research on HCA Healthcare reflects a split view, with some firms trimming price targets and others lifting them, as assumptions are updated around valuation, execution on guidance, AI related efficiency potential, and Medicaid related earnings support.
MRK
US$110.03
Merck
7D
-2.2%
1Y
29.9%

Merck: Bullish Setup Into Q1 Earnings

Apr 27
PFE
US$26.48
Pfizer
7D
-3.0%
1Y
11.3%
CI
US$284.92
Cigna Group
7D
3.0%
1Y
-15.5%
ABT
US$93.86
Abbott Laboratories
7D
1.2%
1Y
-28.1%
TMO
US$470.22
Thermo Fisher Scientific
7D
-10.4%
1Y
10.0%
ELV
US$362.74
Elevance Health
7D
10.6%
1Y
-12.3%
ISRG
US$466.64
Intuitive Surgical
7D
3.4%
1Y
-9.4%
CVS
US$80.98
CVS Health
7D
4.7%
1Y
24.5%

CVS: Medicare Advantage Turnaround And FTC Settlement Will Support Future Earnings

CVS Health's analyst price targets have edged higher by a few dollars, as analysts factor in slightly stronger revenue and margin assumptions, a modestly lower discount rate, and a somewhat lower future P/E multiple in light of recent research that highlights Medicare Advantage exposure, potential earnings stability in pharmacy, and reduced regulatory uncertainty tied to a possible FTC settlement. Analyst Commentary Recent research on CVS Health reflects a mix of cautious optimism and ongoing concern, with analysts adjusting price targets by only a few dollars in either direction as they reassess earnings quality, regulatory risks, and Medicare Advantage exposure.
DHR
US$178.98
Danaher
7D
-8.0%
1Y
-10.0%

Danaher Q1 2026 Earnings Update

Apr 22