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

U.S. Healthcare Sector Analysis

UpdatedMar 01, 2026
DataAggregated Company Financials
Companies1394
  • 7D1.8%
  • 3M1.5%
  • 1Y8.1%
  • YTD1.6%

Over the last 7 days, the Healthcare industry has risen 1.8%, driven by gains from Eli Lilly of 4.2%. Meanwhile, Elevance Health actually underperformed within the industry, shrinking 6.7% in the last week. 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
Mon, 02 Mar 2026US$6.7tUS$3.3tUS$127.6b25.5x52.2x2x
Wed, 28 Jan 2026US$6.6tUS$3.2tUS$130.7b28x50.9x2.1x
Fri, 26 Dec 2025US$6.6tUS$3.2tUS$135.2b26.4x48.5x2.1x
Sun, 23 Nov 2025US$6.3tUS$3.2tUS$133.7b25.8x47.5x2x
Tue, 21 Oct 2025US$6.0tUS$3.1tUS$140.2b25.5x43.1x2x
Thu, 18 Sep 2025US$5.7tUS$3.1tUS$137.5b23.7x41.3x1.8x
Sat, 16 Aug 2025US$5.6tUS$3.1tUS$137.1b23.1x40.6x1.8x
Mon, 14 Jul 2025US$5.5tUS$3.0tUS$127.9b24x43.3x1.8x
Wed, 11 Jun 2025US$5.5tUS$3.0tUS$127.2b24.1x43.2x1.8x
Fri, 09 May 2025US$5.5tUS$3.0tUS$128.7b24.5x42.5x1.8x
Sun, 06 Apr 2025US$5.2tUS$2.6tUS$82.2b24.7x63.5x2x
Tue, 04 Mar 2025US$5.9tUS$2.6tUS$79.5b27.7x73.8x2.2x
Thu, 30 Jan 2025US$6.1tUS$2.9tUS$84.4b27.8x72.7x2.1x
Sat, 28 Dec 2024US$5.9tUS$2.9tUS$78.3b26.8x74.9x2x
Mon, 25 Nov 2024US$6.0tUS$2.9tUS$77.3b28.2x78.1x2.1x
Wed, 23 Oct 2024US$6.2tUS$2.8tUS$58.4b31.9x105.6x2.2x
Fri, 20 Sep 2024US$6.3tUS$2.8tUS$60.1b30.6x104.5x2.2x
Sun, 18 Aug 2024US$6.2tUS$2.8tUS$56.0b32.8x109.8x2.2x
Tue, 16 Jul 2024US$6.3tUS$2.8tUS$62.2b31.2x101.7x2.2x
Thu, 13 Jun 2024US$6.2tUS$2.8tUS$62.4b29.7x99.6x2.2x
Sat, 11 May 2024US$6.1tUS$2.8tUS$63.9b30.7x95.8x2.2x
Mon, 08 Apr 2024US$6.2tUS$2.8tUS$84.1b32.4x73.2x2.2x
Wed, 06 Mar 2024US$6.3tUS$2.8tUS$85.0b31.4x74x2.3x
Fri, 02 Feb 2024US$6.4tUS$2.8tUS$78.3b32.3x82.3x2.3x
Sun, 31 Dec 2023US$6.2tUS$2.8tUS$91.5b32.8x68.1x2.2x
Tue, 28 Nov 2023US$5.9tUS$2.8tUS$91.4b28x64.4x2.1x
Thu, 26 Oct 2023US$5.7tUS$2.8tUS$98.9b24.6x57.4x2x
Sat, 23 Sep 2023US$5.9tUS$2.8tUS$98.6b27.7x60x2.1x
Mon, 21 Aug 2023US$6.1tUS$2.8tUS$99.2b28x61.4x2.2x
Wed, 19 Jul 2023US$6.0tUS$2.7tUS$110.9b26.3x54.1x2.2x
Fri, 16 Jun 2023US$6.0tUS$2.7tUS$110.1b26.4x54.1x2.2x
Sun, 14 May 2023US$6.0tUS$2.7tUS$114.7b24.7x52.3x2.2x
Tue, 11 Apr 2023US$5.9tUS$2.5tUS$124.4b24.7x47.6x2.4x
Thu, 09 Mar 2023US$5.7tUS$2.5tUS$122.5b24.6x46.2x2.3x
Price to Earnings Ratio

46.2x


Total Market Cap: US$5.7tTotal Earnings: US$122.5bTotal 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 Sciences1.58%
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 56.2x.
    • Analysts are expecting annual earnings growth of 16.5%, 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
LLY Eli LillyUS$1.05k4.2%
+US$37.9b		14.3%PE45.5x
JNJ Johnson & JohnsonUS$248.432.4%
+US$14.3b		50.5%PE22.3x
ABBV AbbVieUS$232.083.2%
+US$12.9b		11.0%PE98x
AMGN AmgenUS$388.163.6%
+US$7.2b		26.0%PE27.1x
ABT Abbott LaboratoriesUS$116.353.7%
+US$7.2b		-15.7%PE31.1x

Latest News

AMGN
US$388.16
Amgen
7D
3.6%
1Y
26.0%
PFE
US$27.65
Pfizer
7D
3.8%
1Y
4.6%
VRTX
US$496.83
Vertex Pharmaceuticals
7D
4.2%
1Y
3.6%

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$1,051.99
Eli Lilly
7D
4.2%
1Y
14.3%
ELV
US$320.00
Elevance Health
7D
-4.7%
1Y
-19.1%
JNJ
US$248.43
Johnson & Johnson
7D
2.4%
1Y
50.5%
ONC
US$316.99
BeOne Medicines
7D
-14.5%
1Y
29.1%
UHS
US$206.10
Universal Health Services
7D
-10.6%
1Y
17.6%
BDX
US$176.48
Becton Dickinson
7D
-4.8%
1Y
-21.7%
INSM
US$149.33
Insmed
7D
-6.1%
1Y
95.7%
MDLN
US$47.51
Medline
7D
-4.6%
1Y
n/a
ABT
US$116.35
Abbott Laboratories
7D
3.7%
1Y
-15.7%
MCK
US$987.37
McKesson
7D
4.0%
1Y
53.2%

MCK: Defensive Healthcare Premium And Buybacks Will Shape Perceived Safety Trade

Analysts have raised McKesson's fair value estimate by about $14 to $980.40, as a series of higher Street price targets, including Barclays' move to $1,050, keeps the stock in focus for investors seeking perceived safety within healthcare, even as shares trade at a premium to recent averages. Analyst Commentary Recent research has centered on McKesson's valuation after a series of price target increases, including a move to US$1,050 that highlights how closely investors are watching the name as a perceived defensive healthcare holding.
ABBV
US$232.08
AbbVie
7D
3.2%
1Y
11.0%

ABBV: Future Returns Will Rely On Immunology Encore And Evolving Deal Optionality

Our updated AbbVie narrative reflects a modest price target increase to about $248 per share, as analysts point to potential operating leverage, room for P/E multiple expansion, and a pipeline of proof-of-concept and immunology programs that could support slightly higher revenue growth assumptions, even as margin expectations are trimmed. Analyst Commentary Recent research shows a mix of optimism and caution around AbbVie, with several firms adjusting price targets and ratings as they reassess execution risks, competitive pressures, and the potential impact of the pipeline on valuation.
RGC
US$26.23
Regencell Bioscience Holdings
7D
-10.1%
1Y
21,568.4%

Regencell Bioscience Holdings Ltd. (RGC) The TCM Biotech Lottery Ticket: High Hopes and Extreme Volatility

If you're looking for a stock that perfectly embodies the wild, speculative side of the market for your viewers, Regencell Bioscience (RGC) is it. As of late February 2026, this Hong Kong-headquartered, early-stage bioscience company is trading around $29.17 , following a period of mind-bending volatility where the stock surged thousands of percent over the past year.
WAT
US$319.38
Waters
7D
-4.2%
1Y
-15.4%

WAT: Reorganization And Margin Pressure Will Likely Cap Upside For Now

Analysts now mark their price target for Waters at $330, down from $349, citing updated assumptions around revenue growth, profit margins, discount rate, and future P/E that change their overall valuation framework. What's in the News Waters closed a transaction and reorganized into four divisions focused on high-volume testing and adjacent markets, now grouped as Waters Analytical Sciences, Waters Biosciences, Waters Advanced Diagnostics, and Waters Materials Sciences (company announcement).