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U.S. Healthcare Sector Analysis

UpdatedDec 28, 2025
DataAggregated Company Financials
Companies1385
  • 7D1.0%
  • 3M15.9%
  • 1Y12.0%
  • YTD12.9%

The Healthcare industry is up 1.0% in the last week, with Merck up 5.6%. This takes the industry's 12 month performance to a gain of 12%. Earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 28 Dec 2025US$6.6tUS$3.2tUS$135.2b26.5x48.5x2.1x
Tue, 25 Nov 2025US$6.4tUS$3.2tUS$133.7b25.9x47.5x2x
Thu, 23 Oct 2025US$6.0tUS$3.1tUS$140.7b25.3x43x1.9x
Sat, 20 Sep 2025US$5.7tUS$3.1tUS$137.6b23.9x41.6x1.8x
Mon, 18 Aug 2025US$5.7tUS$3.1tUS$136.9b23.2x41.3x1.8x
Wed, 16 Jul 2025US$5.5tUS$3.0tUS$127.9b23.4x43.4x1.8x
Fri, 13 Jun 2025US$5.6tUS$3.0tUS$127.2b24.1x43.6x1.8x
Sun, 11 May 2025US$5.4tUS$3.0tUS$126.6b24.2x42.4x1.8x
Tue, 08 Apr 2025US$5.2tUS$2.6tUS$82.2b24.9x63.5x2x
Thu, 06 Mar 2025US$5.8tUS$2.6tUS$79.2b27.5x73.3x2.2x
Sat, 01 Feb 2025US$6.2tUS$2.9tUS$85.1b27.8x72.5x2.1x
Mon, 30 Dec 2024US$5.8tUS$2.9tUS$78.3b26.8x74.4x2x
Wed, 27 Nov 2024US$6.1tUS$2.9tUS$77.1b28.4x79.1x2.1x
Fri, 25 Oct 2024US$6.1tUS$2.8tUS$58.7b29.5x104.2x2.2x
Sun, 22 Sep 2024US$6.3tUS$2.8tUS$60.1b30.1x104.6x2.2x
Tue, 20 Aug 2024US$6.2tUS$2.8tUS$56.0b32.1x109.9x2.2x
Thu, 18 Jul 2024US$6.4tUS$2.8tUS$61.0b31.8x105.1x2.3x
Sat, 15 Jun 2024US$6.2tUS$2.8tUS$62.4b29.9x99.4x2.2x
Mon, 13 May 2024US$6.1tUS$2.8tUS$64.0b30.6x95.5x2.2x
Wed, 10 Apr 2024US$6.1tUS$2.8tUS$85.3b32.7x72x2.2x
Fri, 08 Mar 2024US$6.3tUS$2.8tUS$83.1b32.2x75.9x2.3x
Sun, 04 Feb 2024US$6.4tUS$2.8tUS$76.5b31.9x84.1x2.3x
Tue, 02 Jan 2024US$6.2tUS$2.8tUS$91.5b32.8x68.1x2.2x
Thu, 30 Nov 2023US$5.8tUS$2.8tUS$91.4b28.2x63.7x2.1x
Sat, 28 Oct 2023US$5.5tUS$2.8tUS$99.5b24.1x55.6x2x
Mon, 25 Sep 2023US$5.9tUS$2.8tUS$98.6b27.7x60x2.1x
Wed, 23 Aug 2023US$6.1tUS$2.8tUS$99.0b28.1x61.6x2.2x
Fri, 21 Jul 2023US$6.1tUS$2.7tUS$110.8b26.6x55x2.2x
Sun, 18 Jun 2023US$6.0tUS$2.7tUS$109.9b26.4x54.8x2.2x
Tue, 16 May 2023US$6.0tUS$2.7tUS$114.7b24.7x52.4x2.2x
Thu, 13 Apr 2023US$5.9tUS$2.5tUS$123.2b24.4x48.2x2.4x
Sat, 11 Mar 2023US$5.5tUS$2.5tUS$123.0b23.5x44.9x2.2x
Mon, 06 Feb 2023US$6.0tUS$2.5tUS$133.6b23.5x44.9x2.4x
Wed, 04 Jan 2023US$6.0tUS$2.5tUS$135.5b22.5x44.2x2.4x
Price to Earnings Ratio

44.2x


Total Market Cap: US$6.0tTotal Earnings: US$135.5bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.1x20242025
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 48.5x which is lower than its 3-year average PE of 65.1x.
  • 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 9.3% 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 Market1.25%
Healthcare1.05%
Life Sciences1.87%
Pharma1.31%
Biotech1.10%
Healthcare Services1.06%
Healthtech0.54%
Medical Equipment0.23%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 60.2x.
    • Analysts are expecting annual earnings growth of 17.6%, which is higher than its past year's earnings decline of 0.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 24% over the next 5 years.
  • However this is lower than its past earnings growth rate of 56% per year.
  • In contrast, the Medical Equipment 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
MRK MerckUS$106.785.6%
+US$14.1b		7.1%PE13.9x
LLY Eli LillyUS$1.08k0.6%
+US$5.6b		37.6%PE52.4x
ABBV AbbVieUS$229.981.4%
+US$5.6b		29.2%PE173.1x
TMO Thermo Fisher ScientificUS$580.742.3%
+US$4.9b		10.4%PE33.2x
UNH UnitedHealth GroupUS$331.831.3%
+US$4.0b		-34.9%PE17.1x

Latest News

ABT
US$124.84
Abbott Laboratories
7D
-0.5%
1Y
8.6%

ABT: Exact Sciences Deal And Legal Wins Will Drive Future Returns

Analysts modestly raised their average price target for Abbott Laboratories to about $144 per share, citing resilient mid-single digit organic revenue growth, double digit earnings power supported by a diversified healthcare portfolio, accelerating momentum in Medical Devices despite some near term lumpiness, and potential strategic upside from the pending Exact Sciences acquisition at a premium takeout valuation. Analyst Commentary Street research remains broadly constructive on Abbott, with recent notes highlighting both upside drivers and areas of near term scrutiny as investors digest the Exact Sciences transaction and mixed quarterly optics.
TMO
US$580.74
Thermo Fisher Scientific
7D
2.3%
1Y
10.4%
INCY
US$100.11
Incyte
7D
-2.5%
1Y
44.6%

INCY: Future Returns Will Hinge On Executing High-Expectation Pipeline Under New Leadership

Analysts have nudged their price target on Incyte slightly higher, to $82 from $81. This reflects a modestly improved fair value estimate even as they caution that the recent share rally has largely priced in high expectations for key pipeline assets and new management.
PFE
US$25.09
Pfizer
7D
-0.4%
1Y
-5.7%

PFE: Obesity Bid And Margin Outlook May Drive Re-Rating Ahead

Analysts have nudged their price target on Pfizer higher by $2 to $30, citing improving margin expectations and a more constructive sector backdrop, despite tempered revenue growth assumptions. Analyst Commentary Bullish analysts highlight that the latest price target increase reinforces a gradually improving sentiment toward Pfizer, with investors starting to look past the near term revenue slowdown and focus more on medium term cash flow durability and pipeline execution.
BLLN
US$89.30
BillionToOne
7D
-13.0%
1Y
n/a

BillionToOne: An Interesting Set-Up Into 2026

Dec 25
MRK
US$106.78
Merck
7D
5.6%
1Y
7.1%

MRK: Cidara Flu Deal Will Likely Expose Overstated Long Term Expectations

Analysts have nudged their fair value estimate for Merck higher, lifting the price target by $1 to $83 as they factor in stronger revenue growth, improved profit margins, and a lower future P/E multiple supported by recent positive research initiations and deal activity. Analyst Commentary Street research around Merck has turned more constructive in recent weeks, with several firms highlighting an improving growth outlook and a more attractive risk reward profile.
MDT
US$96.52
Medtronic
7D
-2.1%
1Y
19.5%

MDT: Future Performance Will Reflect Cardiovascular Pipeline And New Surgical Platform Momentum

Medtronic's analyst price target has moved moderately higher toward a range of roughly $114 to $118, as analysts point to consistent Q2 revenue and EPS beats, accelerating cardiovascular and top line growth, and a strengthening product pipeline that supports sustained mid single digit plus organic growth. Analyst Commentary Analyst commentary around Medtronic has turned more constructive as recent quarters have demonstrated improving revenue performance, consistent EPS outperformance, and clearer visibility into an accelerating growth trajectory supported by the product pipeline.
ABBV
US$229.98
AbbVie
7D
1.4%
1Y
29.2%

ABBV: Future Returns Will Hinge On Post-Humira Immunology And Pipeline Execution

Analysts have nudged our AbbVie fair value estimate slightly higher, from $243.55 to $244.68. This reflects modestly stronger long term revenue growth expectations for key immunology franchises and pipeline assets, partially offset by slightly lower margin assumptions and a broadly constructive but mixed backdrop of recent price target revisions and rating changes across the Street.
MRNA
US$31.20
Moderna
7D
-7.7%
1Y
-22.3%

MRNA: Oncology Advances And Buyout Optionality Will Offset Debt And Litigation Risks

Analysts have modestly raised their price target on Moderna to align with a slightly higher fair value estimate of about $36.75, citing incremental improvements in long term revenue growth and profitability assumptions supported by recent Investor and Analyst Day updates, revised 2026 to 2028 guidance, and Ares financing. Analyst Commentary Recent Street research reflects a cautious but incrementally more constructive stance toward Moderna, with several firms refining their models following Investor and Analyst Day presentations and the announcement of new financing.
LLY
US$1,077.75
Eli Lilly
7D
0.6%
1Y
37.6%
JNJ
US$207.63
Johnson & Johnson
7D
0.6%
1Y
43.1%

JNJ Future Portfolio Separation And Litigation Resolution Will Shape Balanced Risk Reward Outlook

Analysts have raised their average price target on Johnson & Johnson by about $7 to roughly $209, reflecting slightly faster expected revenue growth, a modestly higher future earnings multiple, and confidence that portfolio reshaping and pipeline execution can offset near term margin pressure. Analyst Commentary Street research on Johnson & Johnson has turned incrementally more constructive, with multiple firms lifting price targets in response to stronger fundamentals and portfolio actions that are viewed as supportive of a faster growth profile.
UNH
US$331.83
UnitedHealth Group
7D
1.3%
1Y
-34.9%

UNH: Margin Recovery And Policy Risks Will Shape Earnings Trajectory

Analysts have raised their fair value estimate for UnitedHealth Group from $198.00 to approximately $304.61 as they factor in a sector wide margin recovery in Medicare Advantage and Medicaid, improved pricing discipline at Optum Health, and a higher forward price to earnings multiple reflecting expectations for significant EPS growth in the coming years. Analyst Commentary Recent Street research on UnitedHealth Group reflects a generally constructive outlook on earnings recovery and valuation, but with a growing emphasis on execution risk around Medicare Advantage repricing, regulatory changes, and the pace of Optum margin normalization.
DHR
US$230.32
Danaher
7D
2.4%
1Y
-0.3%

DHR: Share Repurchases Will Support Premium Multiple As Life Sciences Demand Recovers

Analysts modestly raised their blended fair value estimate for Danaher to about $258 from roughly $256, reflecting slightly lower discount rate and higher future multiple assumptions, even as they trim official price targets toward $220 amid ongoing uncertainty around the pace of life sciences and diagnostics recovery. Analyst Commentary Analysts broadly agree that Danaher's premium valuation assumes a reacceleration of growth across life sciences and diagnostics, but they remain divided on how quickly fundamentals will normalize versus the lingering headwinds in key end markets.
IDXX
US$688.48
IDEXX Laboratories
7D
-1.7%
1Y
65.9%

IDXX Recurring Diagnostics Strength Will Support Premium Earnings Power Ahead

Our updated fair value estimate for IDEXX Laboratories has increased to $850 from $785, as analysts highlight a stronger than expected Q3 performance, accelerating recurring diagnostic revenue growth, and a robust innovation pipeline that supports slightly higher long term growth and margin assumptions despite a modestly higher discount rate. Analyst Commentary Recent Street research reflects a broadly constructive stance on IDEXX Laboratories following its stronger than expected Q3 results and raised 2025 guidance.
AMGN
US$332.93
Amgen
7D
1.7%
1Y
26.8%

AMGN: Margin Expansion And Pipeline Progress Will Drive Long-Term Upside Potential

Analysts have nudged their fair value estimate for Amgen higher to approximately $425 from about $405, reflecting a more constructive view on the company as a defensive large cap biotech with improving margin potential and an innovation pipeline that, while still facing patent expiry and execution risks, is increasingly seen as capable of supporting long term earnings power. Analyst Commentary Recent Street research on Amgen highlights a balanced but gradually improving sentiment backdrop, with a growing cohort of bullish analysts positioning the company as a core large cap biotech holding.
UTHR
US$507.16
United Therapeutics
7D
-1.9%
1Y
40.9%

UTHR: Future Pulmonary Fibrosis Upside Will Prove Overestimated

We are raising our fair value estimate for United Therapeutics to $423 per share from $320.81, as analysts lift price targets following another record Tyvaso quarter, a strong early Yutrepia launch, and growing conviction that pulmonary fibrosis and ex U.S. partnership opportunities can materially accelerate revenue growth and support higher long term margins. Analyst Commentary Street research following the latest quarter has been broadly constructive, with several firms lifting price targets on the back of record Tyvaso performance and a better than expected Yutrepia launch.