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U.S. Healthcare Sector Analysis

UpdatedSep 16, 2026
DataAggregated Company Financials
Companies1376
  • 7D-0.7%
  • 3M10.7%
  • 1Y23.1%
  • YTD8.0%

The Healthcare is pretty flat in the last 7 days, but AbbVie has stood out, gaining 5.7%. As for the the longer term, the industry is up 23% over the past 12 months. As for the next few years, earnings are expected to grow by 21% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 16 Sep 2026US$7.1tUS$3.4tUS$118.7b25.3x59.5x2.1x
Fri, 14 Aug 2026US$7.1tUS$3.4tUS$116.0b25.9x61.6x2.1x
Sun, 12 Jul 2026US$6.9tUS$3.3tUS$122.0b25x56.6x2.1x
Tue, 09 Jun 2026US$6.4tUS$3.3tUS$122.7b22.9x52.4x1.9x
Thu, 07 May 2026US$6.2tUS$3.3tUS$119.2b23.4x52.1x1.9x
Sat, 04 Apr 2026US$6.2tUS$3.3tUS$128.2b22.5x48.3x1.9x
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
Price to Earnings Ratio

60x


Total Market Cap: US$5.9tTotal Earnings: US$98.6bTotal Revenue: US$2.8tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.5x202420252026
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 59.5x which is lower than its 3-year average PE of 65.5x.
  • 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 6.4% per year over the last three years.
  • Revenues for these companies have grown 6.7% 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 Market-1.64%
Healthcare-0.72%
Life Sciences4.27%
Healthtech1.99%
Medical Equipment-0.36%
Pharma-0.64%
Healthcare Services-1.31%
Biotech-3.07%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 55.3x.
    • Analysts are expecting annual earnings growth of 18.6%, which is higher than its past year's earnings growth of 9.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 29% over the next 5 years.
  • However this is lower than its past earnings growth rate of 65% per year.
  • 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
ABBV AbbVieUS$263.045.7%
+US$25.2b		21.6%PE74.1x
TMO Thermo Fisher ScientificUS$641.396.4%
+US$14.2b		33.4%PE34x
LLY Eli LillyUS$1.14k1.1%
+US$10.9b		48.6%PE37.9x
ISRG Intuitive SurgicalUS$377.167.7%
+US$9.5b		-13.2%PE42.5x
HCA HCA HealthcareUS$423.825.4%
+US$4.7b		6.0%PE13.4x

Latest News

AMGN
US$375.65
Amgen
7D
-4.5%
1Y
37.6%
ABT
US$102.03
Abbott Laboratories
7D
-3.3%
1Y
-23.1%
UNH
US$375.93
UnitedHealth Group
7D
-6.2%
1Y
10.6%
LLY
US$1,136.11
Eli Lilly
7D
1.1%
1Y
48.6%
COO
US$53.27
Cooper Companies
7D
-21.3%
1Y
-18.2%
Seeking Alpha • 21h

Cooper Companies: A Little More Compelling At This Price

Summary Cooper Companies (COO) is re-rated from Sell to Hold after a 31% price decline, reflecting a more interesting risk/reward profile but ongoing growth concerns. COO's revenue growth remains weak, with core CooperVision revenues flat and management attributing this to distribution channel destocking, raising questions about underlying demand. Gross margin expansion to 67% is largely driven by inventory write-offs, making COO's margin improvement less robust than Alcon's operational gains. At a P/E of ~18 and P/FCF of 15, COO's valuation still appears rich given flatlining growth, especially compared to Alcon's stronger growth and margin trajectory. Read the full article on Seeking Alpha
JNJ
US$267.20
Johnson & Johnson
7D
-0.7%
1Y
51.4%
ISRG
US$377.16
Intuitive Surgical
7D
7.7%
1Y
-13.2%
Seeking Alpha • Sep 15

Intuitive Surgical: My Sell Case Is Losing Ground (Rating Upgrade)

Summary Intuitive Surgical remains a compelling long-term investment, though current valuation still demands strong execution. ISRG's Q2 saw revenue growth moderate to 18.5%, but operating income surged 30.7%, and margins expanded, even after adjusting for tariff refunds. Recurring revenue from instruments, services, and leases drove 86% of incremental sales, while system adoption and installed base growth support future procedures. I move to Hold as lower multiples and resilient earnings offer a better risk-return balance, but procedure growth and demand require close monitoring. Read the full article on Seeking Alpha
NTRA
US$350.78
Natera
7D
8.2%
1Y
100.4%
ABBV
US$263.04
AbbVie
7D
5.7%
1Y
21.6%
VRTX
US$514.63
Vertex Pharmaceuticals
7D
-2.7%
1Y
31.5%
REGN
US$774.11
Regeneron Pharmaceuticals
7D
-4.5%
1Y
34.6%
Narrative Update • Sep 10

REGN: Future Re Rating Will Hinge On Oncology And Legal Overhang

Regeneron Pharmaceuticals' fair value estimate has shifted to about $1,020 from $1,000 as analysts factor in a series of higher price targets, supported by recent research that cites a lower healthcare sector risk premium, product strength in Dupixent, Eylea and Libtayo, and updated biotechnology models following what some describe as solid Q2 results. Analyst Commentary Recent research on Regeneron Pharmaceuticals points to a generally constructive tone from bullish analysts, with several highlighting Q2 execution and key product performance as support for higher valuation frameworks.
MRK
US$143.79
Merck
7D
-3.1%
1Y
77.3%
HCA
US$423.82
HCA Healthcare
7D
5.4%
1Y
6.0%
CI
US$288.90
Cigna Group
7D
4.7%
1Y
-1.8%
TMO
US$641.39
Thermo Fisher Scientific
7D
6.4%
1Y
33.4%
ELV
US$417.54
Elevance Health
7D
3.9%
1Y
34.7%