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

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 54.8x 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.

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

Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 55.9x. Analysts are expecting annual earnings growth of 17.1%, which is higher than its past year's earnings growth of 12.6% per year.

U.S. Healthcare Sector Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Sat, 25 Jul 2026	US$6.8t	US$3.3t	US$123.6b	25.5x	54.8x	2x
Mon, 22 Jun 2026	US$6.4t	US$3.3t	US$121.7b	23.3x	52.4x	1.9x
Wed, 20 May 2026	US$6.2t	US$3.3t	US$122.5b	23x	50.4x	1.9x
Fri, 17 Apr 2026	US$6.3t	US$3.3t	US$121.3b	23.8x	51.8x	1.9x
Sun, 15 Mar 2026	US$6.2t	US$3.3t	US$124.6b	24x	49.9x	1.9x
Tue, 10 Feb 2026	US$6.6t	US$3.3t	US$125.4b	27.2x	52.4x	2x
Thu, 08 Jan 2026	US$6.6t	US$3.2t	US$135.9b	26.6x	48.6x	2.1x
Sat, 06 Dec 2025	US$6.4t	US$3.2t	US$133.6b	25.9x	47.9x	2x
Mon, 03 Nov 2025	US$6.0t	US$3.1t	US$134.4b	26.1x	44.4x	1.9x
Wed, 01 Oct 2025	US$5.7t	US$3.1t	US$137.6b	24x	41.2x	1.8x
Fri, 29 Aug 2025	US$5.7t	US$3.1t	US$137.2b	23.2x	41.5x	1.8x
Sun, 27 Jul 2025	US$5.6t	US$3.1t	US$128.1b	24.6x	43.8x	1.8x
Tue, 24 Jun 2025	US$5.4t	US$3.0t	US$127.5b	23.8x	42.4x	1.8x
Thu, 22 May 2025	US$5.5t	US$3.0t	US$126.3b	22.9x	43.4x	1.8x
Sat, 19 Apr 2025	US$5.3t	US$2.6t	US$97.6b	24.8x	54.1x	2x
Mon, 17 Mar 2025	US$5.7t	US$2.6t	US$74.8b	26.6x	75.6x	2.1x
Wed, 12 Feb 2025	US$5.9t	US$2.6t	US$84.7b	26x	69.3x	2.2x
Fri, 10 Jan 2025	US$5.9t	US$2.9t	US$79.4b	27.3x	74x	2x
Sun, 08 Dec 2024	US$6.1t	US$2.9t	US$77.6b	28.7x	78.2x	2.1x
Tue, 05 Nov 2024	US$6.2t	US$2.9t	US$71.2b	28.1x	86.5x	2.1x
Thu, 03 Oct 2024	US$6.2t	US$2.8t	US$60.0b	30.1x	104x	2.2x
Sat, 31 Aug 2024	US$6.3t	US$2.8t	US$54.1b	32.3x	116.2x	2.2x
Mon, 29 Jul 2024	US$6.4t	US$2.8t	US$60.8b	31.7x	105x	2.2x
Wed, 26 Jun 2024	US$6.2t	US$2.8t	US$62.4b	30.3x	99.7x	2.2x
Fri, 24 May 2024	US$6.2t	US$2.8t	US$64.3b	30.2x	97x	2.2x
Sun, 21 Apr 2024	US$5.9t	US$2.8t	US$84.6b	30.2x	70.1x	2.1x
Tue, 19 Mar 2024	US$6.2t	US$2.8t	US$84.7b	31.5x	73.4x	2.2x
Thu, 15 Feb 2024	US$6.1t	US$2.8t	US$82.0b	31.1x	74.6x	2.2x
Sat, 13 Jan 2024	US$6.4t	US$2.8t	US$90.8b	32.2x	70.2x	2.3x
Mon, 11 Dec 2023	US$6.0t	US$2.8t	US$91.4b	29.4x	65.2x	2.1x
Wed, 08 Nov 2023	US$5.8t	US$2.8t	US$86.9b	25.8x	66.6x	2.1x
Fri, 06 Oct 2023	US$5.8t	US$2.8t	US$98.3b	26.7x	59.1x	2.1x
Sun, 03 Sep 2023	US$6.1t	US$2.8t	US$98.7b	27.4x	61.9x	2.2x
Tue, 01 Aug 2023	US$6.1t	US$2.7t	US$115.7b	28x	52.5x	2.2x


US Market	-1.98%
Healthcare	0.044%
Pharma	1.90%
Life Sciences	0.59%
Healthcare Services	-0.11%
Biotech	-0.53%
Medical Equipment	-3.14%
Healthtech	-7.98%

Company	Last Price	7D	1Y	Valuation
JNJ Johnson & Johnson	US$263.40	4.1% +US$25.6b	56.5%	PE30.2x
LLY Eli Lilly	US$1.20k	1.4% +US$15.1b	47.2%	PE42.2x
TMO Thermo Fisher Scientific	US$568.26	6.7% +US$13.3b	18.8%	PE30.3x
MRK Merck	US$131.07	2.8% +US$8.8b	54.7%	PE36.2x
ABBV AbbVie	US$259.36	1.9% +US$8.6b	36.3%	PE127.5x

Announcement • 11h

Johnson & Johnson Announces Positive Topline Results from the Three-Arm Investigational Phase 3 Monumental-6 Study Evaluating TECVAYLI® (Teclistamab-Cqyv) + TALVEY® (Talquetamab-Tgvs)

Johnson & Johnson announced positive topline results from the three-arm investigational Phase 3 MonumenTAL-6 study evaluating TECVAYLI® (teclistamab-cqyv) + TALVEY® (talquetamab-tgvs), a BCMA and GPRC5D dual antigen targeting regimen, and TALVEY® + pomalidomide in adult patients with relapsed or refractory multiple myeloma (RRMM) who received 1 to 4 prior lines of therapy, including an anti-CD38 antibody and lenalidomide. The study demonstrated statistically significant and clinically meaningful improvements in progression-free survival and overall survival for both investigational arms compared with investigator's choice standard of care. TECVAYLI® + TALVEY® delivered the greatest benefit, reducing the risk of disease progression or death by 89% (HR, 0.11) and the risk of death by 62% (HR, 0.38). This represents the lowest hazard ratio seen across any Phase 3 study evaluating bispecific therapies in relapsed/refractory multiple myeloma. The MonumenTAL-6 study evaluated TECVAYLI® in combination with TALVEY® (Tec-Tal) or TALVEY® with pomalidomide (Tal-P) compared to the investigator's choice of either elotuzumab, pomalidomide, and dexamethasone (EPd) or pomalidomide, bortezomib, and dexamethasone (PVd) in participants with RRMM who have received at least one line of therapy, including an anti-CD38 antibody and lenalidomide. Both the Tec-Tal and Tal-P regimens met the study's primary endpoint of PFS, demonstrating statistically significant and clinically meaningful improvements versus standard of care. Risk of progression or death was reduced in the Tec-Tal arm by 89% (hazard ratio [HR], 0.11; 95% confidence interval [CI], 0.08-0.16; p<0.0001) and 73% (HR, 0.27; 95% CI, 0.2-0.35) in the Tal-P arm. The overall safety profiles for the Tec-Tal and Tal-P treatment arms were consistent with the known safety profiles of each monotherapy. Based on the strength of the data, the Independent Data Monitoring Committee (IDMC) recommended unblinding the study at the first interim analysis. The full results of the Phase 3 MonumenTAL-6 study will be presented at a future major medical meeting and shared with global health authorities. MonumenTAL-6 (NCT06208150) is a global, randomized, Phase 3 study evaluating TECVAYLI® plus TALVEY® and TALVEY® plus pomalidomide versus investigator's choice of elotuzumab, pomalidomide and dexamethasone (EPd) or pomalidomide, bortezomib and dexamethasone (PVd) in patients with relapsed or refractory multiple myeloma who have received one to four prior lines of therapy, including an anti-CD38 monoclonal antibody and lenalidomide. The primary endpoint is progression-free survival (PFS) as assessed by independent review committee. Key secondary endpoints include overall response rate (ORR), complete response or better (=CR), MRD-negative complete response and overall survival (OS).

Announcement • 11h

Gilead Sciences, Inc. Recommends Trodelvy Plus Keytruda In PD-(L)1-Positive First-Line Metastatic Triple-Negative Breast Cancer

Gilead Sciences, Inc. announced that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) has adopted a positive opinion, recommending the marketing authorization of Trodelvy (sacituzumab govitecan-hziy) in combination with Keytruda (pembrolizumab), for the treatment of adult patients with unresectable locally advanced or metastatic triple-negative breast cancer (TNBC) who have not received prior systemic therapy for metastatic disease and whose tumors express PD-L1 with a combined positive score (CPS =10). The European Commission decision on this indication is anticipated later in 2026. The CHMP’s recommendation is based on data from the Phase 3 ASCENT-04 study/KEYNOTE-D19 which demonstrated a highly statistically significant and clinically meaningful progression-free survival of Trodelvy plus Keytruda versus the combination of standard of care chemotherapy plus Keytruda as a first-line treatment in PD-L1 positive patients. In ASCENT-04/KEYNOTE-D19, Trodelvy plus Keytruda demonstrated a 35% reduced risk of disease progression or death in patients with PD-L1 positive metastatic TNBC. The ASCENT-04/KEYNOTE-D19 study utilized a patient-centered crossover design, which allowed patients in the chemotherapy arm to receive Trodelvy after their disease progressed. The European Commission has approved the use of Trodelvy as monotherapy for the treatment of adult patients with unresectable or metastatic TNBC who have not received prior systemic therapy for metastatic disease and are not candidates for PD-1 or PD-L1 inhibitor therapy. The U.S. Food and Drug Administration (FDA) has approved Trodelvy for the first-line treatment of adult patients with unresectable locally advanced or metastatic TNBC. Trodelvy is approved for: either as a single agent for patients who are not candidates for PD-(L)1 inhibitor-based therapy or in combination with Keytruda (pembrolizumab) or Keytruda Qlex (pembrolizumab and berahyaluronidase alfa-mph) for patients whose tumors express PD-L1 (CPS =10) as determined by an FDA-authorized test. TNBC is the most aggressive type of breast cancer and has historically been difficult to treat, accounting for approximately 15% of all breast cancers. TNBC disproportionally impacts younger, premenopausal, and Black and Hispanic women. TNBC cells do not have estrogen and progesterone receptors and have limited HER2 expression. Due to the nature of TNBC, treatment options are extremely limited compared with other breast cancer types. TNBC has a higher chance of recurrence and metastases than other breast cancer types. The average time to metastatic recurrence for TNBC is approximately 2.6 years compared with 5 years for other breast cancers, and the relative five-year survival rate is much lower. Among women with metastatic TNBC, the five-year survival rate is 12%, compared with 28% for those with other types of mBC. Trodelvy (sacituzumab govitecan-hziy) is a first-in-class Trop-2-directed antibody-drug conjugate. Trop-2 is a cell surface antigen highly expressed in multiple tumor types, including in more than 90% of breast. Trodelvy is intentionally designed with a proprietary hydrolyzable linker attached to SN-38, a topoisomerase I inhibitor payload. This unique combination delivers potent activity to both Trop-2 expressing cells and the tumor microenvironment through a bystander effect. Trodelvy is globally approved for use in certain patients with metastatic TNBC and pre-treated HR+HER2- metastatic breast cancer. Healthcare professionals have substantial clinical experience with Trodelvy, with more than 75,000 breast cancer patients treated since 2020. It is the only ADC with four positive Phase 3 trials in HER2-negative metastatic breast cancer and the only Trop-2-directed ADC to demonstrate a meaningful overall survival benefit in two distinct types of metastatic breast cancer. Trodelvy is currently being evaluated in multiple ongoing Phase 3 trials across a range of tumor types with high Trop-2 expression, including in lung and gynecologic cancers, where previous proof-of-concept studies have demonstrated clinical activity. TRODELVY (sacituzumab govitecan-hziy) is a Trop-2–directed antibody and topoisomerase inhibitor conjugate indicated in adult patients: Locally Advanced or Metastatic Triple-Negative Breast Cancer First Line As a single agent for the first-line treatment of unresectable locally advanced or metastatic triple-negative breast cancer (mTNBC) who are not candidates for PD-1 or PD-L1 inhibitor-based therapy In combination with pembrolizumab or pembrolizumab and berahyaluronidase alfa-pmph for the first-line treatment of unresectable locally advanced or mTNBC whose tumors express PD-L1 [Combined Positive Score (CPS =10)] as determined by an FDA-authorized test Second Line or Later For the treatment of unresectable locally advanced or mTNBC who have received two or more prior systemic therapies, at least one of them for metastatic disease. Locally Advanced or Metastatic HR-positive, HER2-negative Breast Cancer For the treatment of unresectable locally advanced or metastatic hormone receptor (HR)-positive, human epidermal growth factor receptor 2 (HER2)-negative (IHC 0, IHC 1+, or IHC 2+/ISH–) breast cancer who have received endocrine-based therapy and at least two additional systemic therapies in the metastatic setting. TRODELVY can cause severe, life-threatening, or fatal neutropenia. Withhold TRODELVY for absolute neutrophil count below 1500/mm3 or neutropenic fever. Monitor blood cell counts periodically during treatment. Primary prophylaxis with G-CSF is recommended for all patients at increased risk of febrile neutropenia. Initiate anti-infective treatment in patients with febrile neutropenia without delay. TRODELVY can cause severe diarrhea. Monitor patients with diarrhea and give fluid and electrolytes as needed. At the onset of diarrhea, evaluate for infectious causes and, if negative, promptly initiate loperamide. If severe diarrhea occurs, withhold TRODELVY until resolved to =Grade 1 and reduce subsequent doses. Severe hypersensitivity reaction to TRODELVY. Neutropenia: Severe, life-threatening, or fatal neutropenia can occur as early as the first cycle of treatment and may require dose modification. Neutropenia occurred in 64% of patients treated with TRODELVY. Grade 3-4 neutropenia occurred in 48% of patients. Febrile neutropenia occurred in 6%. Neutropenic colitis occurred in 1.4%. Primary prophylaxis with G-CSF is recommended starting in the first cycle of treatment in all patients at increased risk of febrile neutropenia, including older patients, patients with previous neutropenia, poor performance status, organ dysfunction, or multiple comorbidities.

U.S. Healthcare Sector Analysis

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Johnson & Johnson Announces Positive Topline Results from the Three-Arm Investigational Phase 3 Monumental-6 Study Evaluating TECVAYLI® (Teclistamab-Cqyv) + TALVEY® (Talquetamab-Tgvs)

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