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U.S. Healthcare Sector Analysis

UpdatedJan 21, 2026
DataAggregated Company Financials
Companies1395
  • 7D-0.8%
  • 3M8.1%
  • 1Y9.1%
  • YTD0.8%

In the last week, the Healthcare industry is flat overall, with Eli Lilly standing out by going down 3.3%. The past year has been better, since the industry has gained 9.1% in that time. 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, 21 Jan 2026US$6.5tUS$3.2tUS$136.3b27.8x48x2x
Fri, 19 Dec 2025US$6.4tUS$3.2tUS$135.2b26.6x47.6x2x
Sun, 16 Nov 2025US$6.2tUS$3.2tUS$133.4b25.9x46.8x2x
Tue, 14 Oct 2025US$5.9tUS$3.1tUS$137.9b24.1x42.9x1.9x
Thu, 11 Sep 2025US$5.8tUS$3.1tUS$137.7b22.7x41.9x1.9x
Sat, 09 Aug 2025US$5.3tUS$3.1tUS$138.6b22.9x38.5x1.7x
Mon, 07 Jul 2025US$5.6tUS$3.0tUS$127.9b24.3x43.4x1.8x
Wed, 04 Jun 2025US$5.4tUS$3.0tUS$127.2b23.6x42.5x1.8x
Fri, 02 May 2025US$5.5tUS$2.7tUS$117.5b25.2x46.7x2.1x
Sun, 30 Mar 2025US$5.6tUS$2.6tUS$81.6b26.4x69.1x2.1x
Tue, 25 Feb 2025US$5.8tUS$2.6tUS$80.7b26.5x72.1x2.2x
Thu, 23 Jan 2025US$6.0tUS$2.9tUS$78.9b28.2x75.6x2x
Sat, 21 Dec 2024US$5.7tUS$2.9tUS$78.2b27.1x72.7x1.9x
Mon, 18 Nov 2024US$5.9tUS$2.9tUS$76.6b27.6x77.4x2x
Wed, 16 Oct 2024US$6.2tUS$2.8tUS$59.2b30x104.9x2.2x
Fri, 13 Sep 2024US$6.3tUS$2.8tUS$60.3b30.2x103.8x2.2x
Sun, 11 Aug 2024US$6.0tUS$2.8tUS$55.3b30.4x108.9x2.1x
Tue, 09 Jul 2024US$6.1tUS$2.8tUS$62.2b30.2x98.5x2.2x
Thu, 06 Jun 2024US$6.2tUS$2.8tUS$64.1b30.6x96x2.2x
Sat, 04 May 2024US$6.0tUS$2.8tUS$65.2b31.1x92.3x2.1x
Mon, 01 Apr 2024US$6.4tUS$2.8tUS$84.0b33.4x75.7x2.3x
Wed, 28 Feb 2024US$6.3tUS$2.8tUS$85.8b31x73.5x2.3x
Fri, 26 Jan 2024US$6.3tUS$2.8tUS$90.9b32x69.3x2.2x
Sun, 24 Dec 2023US$6.2tUS$2.8tUS$91.5b32.6x67.4x2.2x
Tue, 21 Nov 2023US$5.8tUS$2.8tUS$90.7b27.8x63.6x2x
Thu, 19 Oct 2023US$5.8tUS$2.8tUS$99.8b26x58.5x2.1x
Sat, 16 Sep 2023US$6.0tUS$2.8tUS$98.6b28.9x61.3x2.2x
Mon, 14 Aug 2023US$6.2tUS$2.8tUS$99.1b28.5x62.5x2.2x
Wed, 12 Jul 2023US$5.9tUS$2.7tUS$110.3b26.3x53.6x2.2x
Fri, 09 Jun 2023US$6.0tUS$2.7tUS$110.4b25.5x53.9x2.2x
Sun, 07 May 2023US$6.0tUS$2.7tUS$114.0b25x53x2.2x
Tue, 04 Apr 2023US$5.8tUS$2.5tUS$121.7b24.4x47.9x2.3x
Thu, 02 Mar 2023US$5.7tUS$2.5tUS$123.0b24.8x46.2x2.3x
Sat, 28 Jan 2023US$6.0tUS$2.5tUS$133.9b23.8x44.6x2.4x
Price to Earnings Ratio

44.6x


Total Market Cap: US$6.0tTotal Earnings: US$133.9bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.2x202420252026
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 48.0x which is lower than its 3-year average PE of 65.2x.
  • 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 Market-2.00%
Healthcare-0.76%
Healthcare Services0.23%
Biotech-0.17%
Life Sciences-0.45%
Pharma-1.11%
Medical Equipment-1.35%
Healthtech-3.94%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 59.5x.
    • Analysts are expecting annual earnings growth of 17.2%, 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 12% 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
JNJ Johnson & JohnsonUS$218.212.1%
+US$11.0b		47.3%PE20.9x
TMO Thermo Fisher ScientificUS$619.012.0%
+US$4.5b		8.0%PE35.4x
UNH UnitedHealth GroupUS$338.431.3%
+US$4.1b		-35.5%PE17.4x
AMGN AmgenUS$331.002.1%
+US$3.6b		20.4%PE25.4x
IBRX ImmunityBioUS$6.48129.8%
+US$3.6b		101.2%PS77.3x

Latest News

AMGN
US$331.00
Amgen
7D
2.1%
1Y
20.4%

Amgen's (NASDAQ:AMGN) Shareholders Will Receive A Bigger Dividend Than Last Year

Jan 21
Amgen's (NASDAQ:AMGN) Shareholders Will Receive A Bigger Dividend Than Last Year
ABBV
US$214.04
AbbVie
7D
-3.0%
1Y
24.0%
LLY
US$1,041.29
Eli Lilly
7D
-3.3%
1Y
40.3%
IBRX
US$6.48
ImmunityBio
7D
129.8%
1Y
101.2%
UNH
US$338.43
UnitedHealth Group
7D
1.3%
1Y
-35.5%

Universal Health Services: Why Behavioral Care Is Becoming a Core Earnings Driver

Healthcare investors often focus on hospital occupancy rates, reimbursement shifts, and labor costs. But beneath those headline metrics, a more durable trend is reshaping the industry.
ISRG
US$527.44
Intuitive Surgical
7D
-6.1%
1Y
-12.7%

ISRG at FV

Update on Valuation (18.10.26) Over the next 5 years I calculate with (actual values from 18.01.26 , price/shr at 533 USD ): Revenue Growth p.a.: 12% (Currently at 14,7%) – we saw the peak of revenue growth with nearly 15%, now even 12% is sporty, but with the „abo like“ revenues from spare parts and software licences, based on a still growing bases of installed systems, realisitc. Profit Margin: 30% (currently at 28,6%) - because spare parts in general have more margin then system sales, and the sales out of spare parts is still growing.
JNJ
US$218.21
Johnson & Johnson
7D
2.1%
1Y
47.3%
HCA
US$464.38
HCA Healthcare
7D
-3.1%
1Y
45.8%
BSX
US$91.20
Boston Scientific
7D
-3.1%
1Y
-9.6%
TMO
US$619.01
Thermo Fisher Scientific
7D
2.0%
1Y
8.0%
BMY
US$54.22
Bristol-Myers Squibb
7D
-3.0%
1Y
-4.9%
MDT
US$98.60
Medtronic
7D
2.3%
1Y
11.6%
ABT
US$121.14
Abbott Laboratories
7D
-2.5%
1Y
3.7%

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.
MRK
US$109.45
Merck
7D
1.1%
1Y
13.7%

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.
GILD
US$124.14
Gilead Sciences
7D
2.0%
1Y
33.5%

GILD: HIV PrEP Strength And Oncology Mixed Results Will Shape Outlook

Analysts have nudged their price targets on Gilead Sciences higher, generally toward the US$140 to US$145 range. They cite expectations for stronger HIV PrEP contributions from Yeztugo, a healthier outlook for the broader HIV portfolio including Biktarvy, and ongoing support from oncology and newer launches such as Livdelzi.
RGC
US$24.32
Regencell Bioscience Holdings
7D
-25.3%
1Y
18,383.3%