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U.S. Healthcare Sector Analysis

UpdatedFeb 24, 2026
DataAggregated Company Financials
Companies1388
  • 7D1.0%
  • 3M-1.1%
  • 1Y7.6%
  • YTD0.7%

Over the last 7 days, the Healthcare industry has remained flat, although notably UnitedHealth Group declined by 3.7%. The past year has been better, since the industry has gained 7.1% in that time. Looking forward, earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 24 Feb 2026US$6.5tUS$3.3tUS$128.2b26.5x51.1x2x
Thu, 22 Jan 2026US$6.5tUS$3.2tUS$138.0b28x47.3x2x
Sat, 20 Dec 2025US$6.4tUS$3.2tUS$135.2b26.2x47.6x2x
Mon, 17 Nov 2025US$6.2tUS$3.2tUS$133.4b25.9x46.8x2x
Wed, 15 Oct 2025US$5.9tUS$3.1tUS$140.4b24.4x42.2x1.9x
Fri, 12 Sep 2025US$5.7tUS$3.1tUS$137.7b23.1x41.5x1.8x
Sun, 10 Aug 2025US$5.4tUS$3.1tUS$139.6b23.3x38.5x1.7x
Tue, 08 Jul 2025US$5.6tUS$3.0tUS$127.9b24x43.4x1.8x
Thu, 05 Jun 2025US$5.4tUS$3.0tUS$127.3b23.5x42.6x1.8x
Sat, 03 May 2025US$5.5tUS$2.7tUS$124.5b25x44.1x2x
Mon, 31 Mar 2025US$5.6tUS$2.6tUS$81.7b26.4x69.1x2.1x
Wed, 26 Feb 2025US$5.8tUS$2.6tUS$80.9b26.2x72.2x2.2x
Fri, 24 Jan 2025US$6.0tUS$2.9tUS$85.4b27.1x69.9x2x
Sun, 22 Dec 2024US$5.8tUS$2.9tUS$78.2b27.7x73.5x2x
Tue, 19 Nov 2024US$5.9tUS$2.9tUS$76.6b27.5x77.4x2x
Thu, 17 Oct 2024US$6.2tUS$2.8tUS$58.6b30.3x106.3x2.2x
Sat, 14 Sep 2024US$6.3tUS$2.8tUS$60.3b30.6x104.4x2.2x
Mon, 12 Aug 2024US$6.0tUS$2.8tUS$55.3b30.3x108.9x2.1x
Wed, 10 Jul 2024US$6.1tUS$2.8tUS$62.2b29.5x98.5x2.2x
Fri, 07 Jun 2024US$6.2tUS$2.8tUS$63.7b30.4x97.2x2.2x
Sun, 05 May 2024US$6.0tUS$2.8tUS$65.2b31.1x92.6x2.1x
Tue, 02 Apr 2024US$6.4tUS$2.8tUS$83.9b32.8x75.7x2.3x
Thu, 29 Feb 2024US$6.3tUS$2.8tUS$85.7b30.5x73.9x2.3x
Sat, 27 Jan 2024US$6.3tUS$2.8tUS$90.7b32x69.4x2.2x
Mon, 25 Dec 2023US$6.2tUS$2.8tUS$91.6b33.1x67.4x2.2x
Wed, 22 Nov 2023US$5.8tUS$2.8tUS$90.7b27.8x63.6x2x
Fri, 20 Oct 2023US$5.8tUS$2.8tUS$99.5b25.7x58x2.1x
Sun, 17 Sep 2023US$6.0tUS$2.8tUS$98.6b29.3x61x2.2x
Tue, 15 Aug 2023US$6.2tUS$2.8tUS$98.9b28.4x62.9x2.2x
Thu, 13 Jul 2023US$5.9tUS$2.7tUS$110.3b26.3x53.5x2.2x
Sat, 10 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Mon, 08 May 2023US$6.0tUS$2.7tUS$114.0b25x53x2.2x
Wed, 05 Apr 2023US$5.8tUS$2.5tUS$121.8b24.3x47.8x2.3x
Fri, 03 Mar 2023US$5.7tUS$2.5tUS$122.9b25.1x46.5x2.3x
Price to Earnings Ratio

46.5x


Total Market Cap: US$5.7tTotal Earnings: US$122.9bTotal 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 51.1x 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-0.35%
Healthcare1.02%
Medical Equipment2.52%
Biotech1.36%
Pharma1.05%
Life Sciences0.73%
Healthtech-0.34%
Healthcare Services-1.58%
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 7.4% 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 59% 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$1.06k1.8%
+US$16.6b		20.1%PE45.8x
SYK StrykerUS$384.735.1%
+US$7.1b		-0.8%PE45.4x
MRK MerckUS$123.822.0%
+US$6.0b		35.7%PE16.8x
JNJ Johnson & JohnsonUS$245.841.0%
+US$5.8b		50.1%PE22.1x
AMGN AmgenUS$379.422.8%
+US$5.5b		22.5%PE26.5x

Latest News

GILD
US$149.83
Gilead Sciences
7D
-3.3%
1Y
34.9%
LLY
US$1,058.56
Eli Lilly
7D
1.8%
1Y
20.1%
ABBV
US$229.48
AbbVie
7D
-0.9%
1Y
12.4%

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.
GRAL
US$43.03
GRAIL
7D
-56.5%
1Y
-0.2%

NHS Trial Momentum And Medicare Pathway Will Support Long Term Multi Cancer Screening Adoption

Catalysts About GRAIL GRAIL develops and commercializes Galleri, a blood based multi cancer early detection test aimed at finding cancers at earlier stages. What are the underlying business or industry changes driving this perspective?
ABT
US$115.29
Abbott Laboratories
7D
2.3%
1Y
-14.6%
PFE
US$27.06
Pfizer
7D
-1.9%
1Y
1.5%

PFE: Obesity Pipeline Progress Will Drive Post LOE Re Rating

Pfizer's updated analyst price target edges lower to about $35 per share. This reflects analysts' focus on ongoing losses of exclusivity, a slightly softer revenue and margin outlook, and tempered expectations for future P/E as some firms initiate or assume coverage with more cautious views around the next few years.
JNJ
US$245.84
Johnson & Johnson
7D
1.0%
1Y
50.1%
MRK
US$123.82
Merck
7D
2.0%
1Y
35.7%

MRK: Pipeline Readouts And Gardasil Policy Shifts Will Shape Forward Risk Balance

Analysts have lifted their Merck fair value estimate from $115.11 to $124.88, citing a higher expected future P/E, modestly higher projected revenue growth, and a series of recent price target hikes that highlight confidence in upcoming launches and data readouts. Analyst Commentary Recent Street research around Merck points to a generally constructive tone, with many firms adjusting ratings and price targets in a way that supports a higher fair value, while still flagging a few execution and policy watchpoints for investors to track.
VRTX
US$481.01
Vertex Pharmaceuticals
7D
-2.1%
1Y
-0.1%

VRTX: CF Reliance Will Expose Renal Pipeline Execution Risks

Vertex Pharmaceuticals' updated analyst price target reflects an increase of $23.78 to $401.30, as analysts incorporate refreshed Q4 outcomes, pipeline commentary on programs like povetacicept and IgAN, and modest adjustments to assumptions for revenue growth, profit margin, and future P/E. Analyst Commentary Street research around Vertex Pharmaceuticals has been active following the latest Q4 update, with several firms revisiting their models, refreshing pipeline assumptions, and revising price targets.
SYK
US$384.73
Stryker
7D
5.1%
1Y
-0.8%

SYK: Diversified Medtech Portfolio And Robotics Execution Will Support 2026 Upside

Analysts made a modest trim to their blended Stryker price target, reflecting mixed recent revisions that range from higher targets up to $465 with Outperform ratings to lower targets near $390 and $399 with a Hold rating, as they weigh the company's broader product reach and expected sales and earnings trends against valuation and sector-level risks. Analyst Commentary Recent research on Stryker reflects a split view, with some analysts leaning into the growth story and others more guarded on valuation and sector risks.
TMO
US$516.44
Thermo Fisher Scientific
7D
2.3%
1Y
-3.6%

TMO: 2026 Tools Recovery And AI Partnerships Will Drive Earnings Power

Thermo Fisher Scientific's analyst price targets have moved higher by up to $117 per share, as analysts broadly lift their outlook on the company, citing refined growth and margin assumptions along with a series of recent target increases across the Street. Analyst Commentary Bullish analysts are largely aligned in lifting price targets for Thermo Fisher Scientific, pointing to what they see as an improving setup into 2026 and a company that is executing against refined growth and margin assumptions.
CI
US$283.18
Cigna Group
7D
-2.8%
1Y
-5.9%

CI: Higher Margin Outlook And Onsite Care Expansion Will Support Upside

Analysts have modestly lifted their price target on Cigna Group to $332.62 from $326.92, citing updated assumptions that combine slightly lower revenue growth with a higher profit margin and a future P/E of 15.62. What's in the News A class action lawsuit has been filed against Express Scripts, Cigna, and Evernorth, alleging a rebate diversion scheme that used an offshore entity, Ascent, to collect billions of dollars in kickbacks labeled as fees instead of passing rebates through to pharmacy benefit management clients, including the Plumbers' Welfare Fund.
ELV
US$335.87
Elevance Health
7D
-3.2%
1Y
-12.8%

ELV: Medicare Advantage Policy Path Will Support Future Margin Recovery Potential

Analysts have nudged their fair value estimate for Elevance Health slightly lower to $387.85 from $389.55, reflecting recent mixed price target changes and updated views on Medicare Advantage and broader managed care policy risks and opportunities. Analyst Commentary Recent research on Elevance Health reflects a mix of optimism about medium term growth drivers and caution around policy and utilization risks, which feeds directly into the modest trim to fair value.
UNH
US$282.34
UnitedHealth Group
7D
-3.7%
1Y
-38.8%

UnitedHealth Group's Future Revenue Grows by 3.59%: What Will It Mean?

UnitedHealth (UNH): A Data Giant Hidden in an Insurer's Crisis Investment Narrative – February 2026 Price Target (12m): $395.00 (+35% upside) Rating: Strong Buy (Contrarian) 1. The Core Thesis: The "Optum" Mispricing The market is currently valuing UnitedHealth through the narrow lens of a traditional insurer struggling with Medicare Advantage (MA) rate cuts and CMS regulatory headwinds for 2027.
AMGN
US$379.42
Amgen
7D
2.8%
1Y
22.5%

AMGN: Long Patent Expiries And Heavier Spending Will Pressure Future Earnings

Analysts have lifted their price targets on Amgen by about $12 to reflect updated views on fair value, profitability, and future P/E assumptions, while also factoring in a higher discount rate and lower projected revenue growth. Analyst Commentary Recent research on Amgen points to a split view, with several firms lifting price targets while others are turning more cautious.
MDLN
US$49.64
Medline
7D
11.4%
1Y
n/a