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U.S. Healthcare Sector Analysis

UpdatedJan 20, 2025
DataAggregated Company Financials
Companies1416
  • 7D0.2%
  • 3M-7.4%
  • 1Y0.8%
  • YTD1.6%

The Healthcare is pretty flat in the last 7 days, but Intuitive Surgical has stood out, gaining 9.8%. In line with that, the industry has also been flat over the past 12 months. Earnings are forecast to grow by 20% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 20 Jan 2025US$5.9tUS$2.9tUS$79.0b27.7x74.1x2x
Wed, 18 Dec 2024US$5.9tUS$2.9tUS$77.7b27.9x75.3x2x
Fri, 15 Nov 2024US$6.2tUS$2.9tUS$76.3b27.8x81.2x2.1x
Sun, 13 Oct 2024US$6.2tUS$2.8tUS$60.0b29.8x104x2.2x
Tue, 10 Sep 2024US$6.2tUS$2.8tUS$60.4b30.5x103.2x2.2x
Thu, 08 Aug 2024US$6.2tUS$2.9tUS$60.3b29.8x103.2x2.2x
Sat, 06 Jul 2024US$6.1tUS$2.8tUS$62.2b30.2x97.8x2.2x
Mon, 03 Jun 2024US$6.1tUS$2.8tUS$64.0b29.9x95.2x2.2x
Wed, 01 May 2024US$6.0tUS$2.8tUS$68.3b31.3x87.9x2.1x
Fri, 29 Mar 2024US$6.3tUS$2.8tUS$82.4b32.4x77x2.3x
Sun, 25 Feb 2024US$6.3tUS$2.8tUS$85.5b31.1x74x2.3x
Tue, 23 Jan 2024US$6.4tUS$2.8tUS$90.8b32.7x69.9x2.2x
Thu, 21 Dec 2023US$6.1tUS$2.8tUS$91.5b31.8x67.2x2.2x
Sat, 18 Nov 2023US$5.8tUS$2.8tUS$90.7b27.8x63.6x2x
Mon, 16 Oct 2023US$5.9tUS$2.8tUS$98.9b25.7x59.3x2.1x
Wed, 13 Sep 2023US$6.1tUS$2.8tUS$98.6b27.6x61.5x2.2x
Fri, 11 Aug 2023US$6.2tUS$2.8tUS$99.3b28.8x62.1x2.2x
Sun, 09 Jul 2023US$5.9tUS$2.7tUS$110.3b26x53.1x2.1x
Tue, 06 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Thu, 04 May 2023US$6.0tUS$2.7tUS$116.9b24.4x51.5x2.2x
Sat, 01 Apr 2023US$5.8tUS$2.5tUS$121.8b24.2x47.4x2.3x
Mon, 27 Feb 2023US$5.7tUS$2.5tUS$123.2b24.4x46.5x2.3x
Wed, 25 Jan 2023US$6.0tUS$2.5tUS$135.2b23.3x44.3x2.4x
Fri, 23 Dec 2022US$6.0tUS$2.5tUS$135.7b23.1x44.4x2.5x
Sun, 20 Nov 2022US$5.9tUS$2.4tUS$134.4b23.2x44.2x2.4x
Tue, 18 Oct 2022US$5.5tUS$2.4tUS$155.7b21.3x35.4x2.3x
Thu, 15 Sep 2022US$5.8tUS$2.4tUS$156.1b22x37x2.4x
Sat, 13 Aug 2022US$6.1tUS$2.4tUS$157.4b23.9x38.9x2.5x
Mon, 11 Jul 2022US$6.0tUS$2.6tUS$165.3b24.7x36.1x2.3x
Wed, 08 Jun 2022US$5.9tUS$2.6tUS$165.7b25.2x35.7x2.3x
Fri, 06 May 2022US$5.9tUS$2.7tUS$164.0b26.7x36x2.1x
Sun, 03 Apr 2022US$6.5tUS$2.5tUS$174.9b28.8x37.4x2.6x
Tue, 01 Mar 2022US$6.2tUS$2.5tUS$171.6b28.5x36.3x2.5x
Thu, 27 Jan 2022US$6.1tUS$2.4tUS$149.7b29.6x40.5x2.5x
Price to Earnings Ratio

40.5x


Total Market Cap: US$6.1tTotal Earnings: US$149.7bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 61.1x202320242025
Current Industry PE
  • Investors are optimistic on the American Healthcare industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 74.1x which is higher than its 3-year average PE of 61.1x.
  • The 3-year average PS ratio of 2.3x is higher than the industry's current PS ratio of 2.0x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have declined 19% per year over the last three years.
  • Meanwhile revenues for these companies have grown 6.6% 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, which has decreased profits.

Industry Trends

Which industries have driven the changes within the U.S. Healthcare sector?

US Market3.25%
Healthcare0.22%
Medical Equipment3.72%
Life Sciences1.45%
Healthcare Services0.76%
Biotech-0.19%
Healthtech-0.32%
Pharma-2.87%
Industry PE
  • Investors are most optimistic about the Life Sciences industry which is trading above its 3-year average PE ratio of 57.9x.
    • Analysts are expecting annual earnings growth of 16.7%, which is higher than its past year's earnings decline of 4.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Healthtech industry, expecting annual earnings growth of 33% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Medical Equipment industry is expected to see its earnings grow by 17% 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
ISRG Intuitive SurgicalUS$592.649.8%
+US$18.8b
57.7%PE94.1x
SYK StrykerUS$383.426.2%
+US$8.6b
22.4%PE40.7x
MDT MedtronicUS$88.087.7%
+US$8.1b
1.9%PE26.3x
JNJ Johnson & JohnsonUS$147.031.8%
+US$6.2b
-9.5%PE24x
BSX Boston ScientificUS$98.664.3%
+US$6.0b
62.4%PE81.1x
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Latest News

LLY

US$725.72

Eli Lilly

7D

-9.0%

1Y

15.0%

JNJ

US$147.03

Johnson & Johnson

7D

1.8%

1Y

-9.5%

PFE

US$26.30

Pfizer

7D

-1.9%

1Y

-7.1%

ICLR

US$198.11

ICON

7D

-9.1%

1Y

-25.3%

MDT

US$88.08

Medtronic

7D

7.7%

1Y

1.9%

ABBV

US$171.56

AbbVie

7D

-2.9%

1Y

3.7%

MRK

US$97.92

Merck

7D

-3.0%

1Y

-18.0%