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

U.S. Healthcare Sector Analysis

UpdatedJul 02, 2026
DataAggregated Company Financials
Companies1404
  • 7D4.1%
  • 3M10.4%
  • 1Y21.3%
  • YTD4.3%

Over the last 7 days, the Healthcare industry has risen 4.1%, driven by gains from Eli Lilly of 6.7%. In the same time, Zoetis was down 7.3%. This means that the industry has gained 21% over the past year. Earnings are forecast to grow by 18% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 02 Jul 2026US$6.8tUS$3.3tUS$121.9b25x55.8x2x
Sat, 30 May 2026US$6.4tUS$3.3tUS$122.4b23.2x52.5x1.9x
Mon, 27 Apr 2026US$6.2tUS$3.3tUS$121.4b24x50.7x1.9x
Wed, 25 Mar 2026US$6.1tUS$3.3tUS$124.8b22.7x48.8x1.9x
Fri, 20 Feb 2026US$6.6tUS$3.3tUS$128.0b26.4x51.4x2x
Sun, 18 Jan 2026US$6.5tUS$3.2tUS$136.3b27.3x48x2x
Tue, 16 Dec 2025US$6.4tUS$3.2tUS$134.0b26.1x47.8x2x
Thu, 13 Nov 2025US$6.2tUS$3.2tUS$133.3b26.5x46.7x2x
Sat, 11 Oct 2025US$6.0tUS$3.1tUS$137.9b24.5x43.7x1.9x
Mon, 08 Sep 2025US$5.7tUS$3.1tUS$137.6b23.1x41.6x1.9x
Wed, 06 Aug 2025US$5.5tUS$3.1tUS$135.3b23.1x40.5x1.8x
Fri, 04 Jul 2025US$5.6tUS$3.0tUS$127.9b24.3x43.4x1.8x
Sun, 01 Jun 2025US$5.4tUS$3.0tUS$127.3b23.1x42.3x1.8x
Tue, 29 Apr 2025US$5.4tUS$2.7tUS$118.5b25.1x45.6x2x
Thu, 27 Mar 2025US$5.7tUS$2.6tUS$81.8b26.5x69.8x2.2x
Sat, 22 Feb 2025US$5.8tUS$2.6tUS$80.4b26.6x72.5x2.2x
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
Price to Earnings Ratio

53.1x


Total Market Cap: US$5.9tTotal Earnings: US$110.3bTotal Revenue: US$2.7tTotal 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 55.8x 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 grown 3.4% per year over the last three years.
  • Revenues for these companies have grown 6.9% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

US Market1.64%
Healthcare4.13%
Healthtech10.69%
Healthcare Services5.47%
Life Sciences5.05%
Pharma4.70%
Biotech3.69%
Medical Equipment1.36%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 56.1x.
    • Analysts are expecting annual earnings growth of 17.0%, which is higher than its past year's earnings growth of 5.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 25% over the next 5 years.
  • However this is lower than its past earnings growth rate of 55% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 14% 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$1.19k6.7%
+US$66.4b		52.9%PE42x
JNJ Johnson & JohnsonUS$253.985.4%
+US$31.2b		63.3%PE29.1x
ABBV AbbVieUS$251.066.9%
+US$28.6b		31.6%PE123.4x
UNH UnitedHealth GroupUS$426.545.1%
+US$18.8b		38.7%PE32.2x
MRK MerckUS$125.374.0%
+US$11.8b		52.2%PE34.7x

Latest News

IDXX
US$537.58
IDEXX Laboratories
7D
-2.1%
1Y
-0.9%
TMO
US$513.33
Thermo Fisher Scientific
7D
4.3%
1Y
20.0%
LLY
US$1,191.74
Eli Lilly
7D
6.7%
1Y
52.9%
TEVA
US$33.44
Teva Pharmaceutical Industries
7D
-2.3%
1Y
96.1%
ZTS
US$72.45
Zoetis
7D
-7.3%
1Y
-54.5%
MRK
US$125.37
Merck
7D
4.0%
1Y
52.2%
Narrative Update • Jun 30

MRK: Late-Stage Pipeline And Oncology Approvals Will Support Higher Future P E Multiple

Analysts have raised the Merck fair value estimate to $155 from $150, pointing to higher long term earnings expectations and multiple expansion, as reflected in recent Street price target increases to as high as $155. Analyst Commentary Recent Street research on Merck reflects a cluster of constructive views, with several bullish analysts lifting price targets and highlighting long term earnings potential.
PFE
US$23.88
Pfizer
7D
-0.7%
1Y
-5.7%
ZBH
US$84.17
Zimmer Biomet Holdings
7D
-7.1%
1Y
-10.0%
VRTX
US$498.01
Vertex Pharmaceuticals
7D
4.8%
1Y
9.0%
Seeking Alpha • Jun 30

Vertex Pharmaceuticals Has One Of The Widest And Most Durable Moats In Biotech

Summary Vertex Pharmaceuticals Incorporated maintains a dominant, monopoly position in cystic fibrosis, driving highly predictable, recurring revenue and justifying its valuation premium. VRTX is leveraging its CF cash flows to expand into pain, hematology, and renal franchises, with promising catalysts in each area, notably Pove for IgAN. Non-CF franchises are gaining traction, with Journavx and Casgevy contributing to revenue growth; renal (Pove) is positioned to become a major driver post-2027. I maintain a Buy rating on VRTX, citing its wide moat, robust pipeline, pristine balance sheet, and clear sightlines to long-term market-beating returns. Read the full article on Seeking Alpha
ABBV
US$251.06
AbbVie
7D
6.9%
1Y
31.6%
BSX
US$43.06
Boston Scientific
7D
-3.1%
1Y
-58.4%
Narrative Update • Jun 30

BSX: Clinical Pipeline Strength Will Offset Watchman Reset And Sector Headwinds

The analyst price target for Boston Scientific has been reduced by $2.10, from $77.10 to $75.00, as analysts factor in slower Watchman growth, lower utilization trends, and more conservative long term revenue and margin assumptions across the medtech sector. Analyst Commentary Recent research on Boston Scientific points to a clear split between optimism on the broader business and caution around Watchman and utilization trends.
ELV
US$416.19
Elevance Health
7D
8.4%
1Y
18.8%
Narrative Update • Jun 30

ELV: Stable Policy And Cost Trends Will Support Future Margin Recovery

For Elevance Health, the updated analyst price target framework moves fair value from $387.85 to $418.67, with analysts pointing to a more supportive policy backdrop, signs of muted medical cost trends, and ongoing margin recovery in government and commercial businesses as key reasons for the reset. Analyst Commentary Recent research on Elevance Health shows a clear shift toward more constructive views as several firms lift price targets and upgrade ratings, while a few remain cautious on longer term policy and margin risks.
UNH
US$426.54
UnitedHealth Group
7D
5.1%
1Y
38.7%
Narrative Update • Jun 29

UNH: Medicare Reset And AI-Driven Margin Recovery Will Shape Multi Year Earnings Path

UnitedHealth Group's analyst price target has been revised higher to $411.31 from $399.73, as analysts factor in slightly stronger profit margin assumptions and a modestly higher forward P/E multiple. This view is supported by recent updates that point to improving medical cost trends, margin recovery and more stable policy conditions for managed care.
JNJ
US$253.98
Johnson & Johnson
7D
5.4%
1Y
63.3%
MDT
US$79.20
Medtronic
7D
-1.2%
1Y
-10.3%
GMED
US$75.96
Globus Medical
7D
-7.5%
1Y
25.4%
Narrative Update • Jun 25

GMED: EPS Upside And Robotics Progress Will Balance Execution And Margin Risks

Globus Medical's analyst price target has moved by $2.82 as analysts weigh fresh evidence around slightly lower modeled revenue growth, higher projected profit margins, and a revised future P/E assumption following recent mixed target changes from Needham and Wells Fargo. Analyst Commentary Recent research commentary on Globus Medical reflects a mixed but cautious tone, as price targets are fine tuned around updated assumptions for revenue growth, profitability and the appropriate P/E range for the stock.