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U.S. Healthcare Sector Analysis

UpdatedMar 02, 2026
DataAggregated Company Financials
Companies1392
  • 7D1.8%
  • 3M1.7%
  • 1Y8.1%
  • YTD1.6%

Over the last 7 days, the Healthcare industry has risen 1.8%, driven by gains from UnitedHealth Group of 4.5%. This means that the industry has gained 8.1% 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
Wed, 04 Mar 2026US$6.7tUS$3.3tUS$127.6b25.5x52.2x2x
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
Thu, 13 Apr 2023US$5.9tUS$2.5tUS$123.2b24.4x48.2x2.4x
Sat, 11 Mar 2023US$5.5tUS$2.5tUS$123.0b23.5x44.9x2.2x
Price to Earnings Ratio

44.9x


Total Market Cap: US$5.5tTotal Earnings: US$123.0bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.4x202420252026
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 52.2x which is lower than its 3-year average PE of 65.4x.
  • 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 9.8% 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 Market-0.57%
Healthcare1.76%
Pharma2.81%
Life Sciences1.59%
Biotech1.23%
Medical Equipment1.14%
Healthcare Services0.87%
Healthtech0.30%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry, which is trading close to its 3-year average PE ratio of 56.1x.
    • Analysts are expecting annual earnings growth of 16.4%, which is higher than its past year's earnings growth of 6.7% 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 50% 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
UNH UnitedHealth GroupUS$289.215.6%
+US$14.4b		-39.1%PE21.8x
ABBV AbbVieUS$233.862.4%
+US$9.6b		12.6%PE98.8x
CVS CVS HealthUS$80.498.5%
+US$8.0b		25.4%PE57.9x
MCK McKessonUS$995.694.0%
+US$4.7b		54.7%PE28.1x
HCA HCA HealthcareUS$541.802.9%
+US$3.4b		73.6%PE17.9x

Latest News

UTHR
US$498.65
United Therapeutics
7D
5.3%
1Y
61.6%
MCK
US$995.69
McKesson
7D
4.0%
1Y
54.7%
MDLN
US$44.39
Medline
7D
-11.2%
1Y
n/a
ABBV
US$233.86
AbbVie
7D
2.4%
1Y
12.6%
TMO
US$508.10
Thermo Fisher Scientific
7D
-1.5%
1Y
-1.6%
ELV
US$284.03
Elevance Health
7D
-13.2%
1Y
-28.5%
MRK
US$119.83
Merck
7D
-3.3%
1Y
29.5%
UNH
US$289.21
UnitedHealth Group
7D
5.6%
1Y
-39.1%

UNH: Medicare Advantage Reset And Rebate Actions Will Support Multi-Year Earnings Recovery

Our updated view trims UnitedHealth Group's fair value estimate to $364.63 from $392.24 as analysts factor in softer revenue growth assumptions, a slightly higher discount rate, and modestly lower long term profit expectations following a broad wave of reduced Street price targets on the stock. Analyst Commentary Street research on UnitedHealth has turned more cautious in the near term, with a cluster of lower price targets from multiple firms and a smaller group of more constructive views.
DHR
US$204.01
Danaher
7D
-2.5%
1Y
-0.9%
EW
US$85.28
Edwards Lifesciences
7D
3.5%
1Y
19.5%
VRTX
US$474.27
Vertex Pharmaceuticals
7D
-2.7%
1Y
-2.5%

Vertex Pharmaceuticals (VRTX): The Diversification Juggernaut – Beyond the CF Monopoly

Vertex Pharmaceuticals (VRTX) has entered a transformative era where its identity is shifting from a "Cystic Fibrosis (CF) company" to a multi-disease powerhouse. Following its Q4 fiscal 2025 earnings report on February 12, 2026 , the stock demonstrated resilience, trading at $495.43 as of February 27.
LLY
US$1,007.73
Eli Lilly
7D
-3.3%
1Y
10.6%
ONC
US$297.04
BeOne Medicines
7D
-19.5%
1Y
15.4%
HCA
US$541.80
HCA Healthcare
7D
2.9%
1Y
73.6%

HCA: Future Returns Will Depend On AI Efficiency And Capital Returns

The updated analyst price target for HCA Healthcare edges higher to an implied fair value of about $542, as analysts factor in the potential for AI driven efficiency gains to support a slightly richer P/E multiple while keeping core growth and margin assumptions essentially unchanged. Analyst Commentary Recent Street research on HCA Healthcare has tilted more constructive, with several bullish analysts lifting their price targets and framing AI driven efficiency as a potential support for a higher valuation multiple.
VEEV
US$185.91
Veeva Systems
7D
5.8%
1Y
-14.9%

VEEV: AI Execution And CRM Stability Will Support Durable Premium Outlook

Our fair value estimate for Veeva Systems has edged down from $308.63 to $302.60. This reflects a series of reduced Street price targets as analysts weigh maturing products, competitive pressures, software sentiment, and the balance of growth opportunities against current valuation.
CVS
US$80.49
CVS Health
7D
8.5%
1Y
25.4%

CVS: Medicare Advantage And Great Healthcare Plan Will Support Future Margin Recovery

Analysts have trimmed their average price target on CVS Health by a few dollars, citing updated views on Medicare-related policy risks and a slightly lower future P/E assumption, even as they factor in modestly stronger profit margins over time. Analyst Commentary Recent research on CVS Health reflects a mix of optimism around long term earnings potential and caution around policy and reimbursement risk tied to Medicare and broader health reform proposals.