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

U.S. Healthcare Sector Analysis

UpdatedJan 29, 2026
DataAggregated Company Financials
Companies1390
  • 7D-2.8%
  • 3M8.0%
  • 1Y6.0%
  • YTD-0.2%

Over the last 7 days, the Healthcare industry has dropped 2.8%, driven by declines in Eli Lilly and UnitedHealth Group of 5.1% and 15%, respectively. This takes the industry's 12 month performance to a gain of 6.0%. Looking forward, 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
Fri, 30 Jan 2026US$6.5tUS$3.2tUS$126.1b27.2x51.8x2x
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
Price to Earnings Ratio

44.9x


Total Market Cap: US$6.0tTotal Earnings: US$133.6bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.2x202420252026
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 51.8x which is lower than its 3-year average PE of 65.2x.
  • 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 Market0.90%
Healthcare-2.81%
Biotech-0.058%
Pharma-1.51%
Medical Equipment-2.51%
Healthtech-2.58%
Life Sciences-4.94%
Healthcare Services-8.77%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 59.3x.
    • Analysts are expecting annual earnings growth of 17.3%, 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 22% over the next 5 years.
  • However this is lower than its past earnings growth rate of 56% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 12% 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
JNJ Johnson & JohnsonUS$227.294.0%
+US$21.2b		48.7%PE20.4x
GILD Gilead SciencesUS$139.556.4%
+US$10.4b		43.9%PE21.3x
ABBV AbbVieUS$220.431.1%
+US$4.1b		25.5%PE165.9x
HCA HCA HealthcareUS$482.533.5%
+US$3.7b		44.2%PE16.2x
VRTX Vertex PharmaceuticalsUS$475.681.8%
+US$2.1b		8.5%PE32.8x

Latest News

TMO
US$592.16
Thermo Fisher Scientific
7D
-7.4%
1Y
-2.4%
HCA
US$482.53
HCA Healthcare
7D
3.5%
1Y
44.2%
JNJ
US$227.29
Johnson & Johnson
7D
4.0%
1Y
48.7%
BSX
US$92.33
Boston Scientific
7D
1.1%
1Y
-10.4%
DHR
US$219.62
Danaher
7D
-8.5%
1Y
-1.6%
UNH
US$292.29
UnitedHealth Group
7D
-17.5%
1Y
-46.4%
TEVA
US$33.07
Teva Pharmaceutical Industries
7D
4.5%
1Y
85.4%
ELV
US$346.98
Elevance Health
7D
-6.8%
1Y
-13.1%
GILD
US$139.55
Gilead Sciences
7D
6.4%
1Y
43.9%
ISRG
US$507.55
Intuitive Surgical
7D
-3.5%
1Y
-12.5%
HUM
US$196.67
Humana
7D
-26.1%
1Y
-33.8%
ABBV
US$220.43
AbbVie
7D
1.1%
1Y
25.5%
LLY
US$1,024.14
Eli Lilly
7D
-5.8%
1Y
24.4%

LLY: Government GLP 1 Pricing Deals Will Pressure Obesity Margins

Analysts have nudged their price targets on Eli Lilly slightly higher, citing continued confidence in the obesity and GLP 1 franchise, supportive government pricing agreements, and potential upside from acquisitions and pipeline catalysts, even as some firms fine tune their models and individual targets by low single digit amounts such as Guggenheim's recent US$2 trim. Analyst Commentary Recent research on Eli Lilly has been dominated by optimism around obesity treatments and government pricing agreements, but there is also a pocket of caution that is worth paying attention to if you are thinking about valuation, execution and long term growth risk.
CVS
US$74.44
CVS Health
7D
-10.0%
1Y
31.0%

CVS: Medicare Advantage And Great Healthcare Plan Will Support Earnings Rebound

Analysts have nudged their average price targets for CVS Health higher, with increases such as Bernstein moving to $91 from $87, BofA to $100 from $89, and RBC to $93 from $81. These changes reflect views that recent policy developments and Q3 results support a steadier outlook for government managed care earnings and potential catalysts in Medicare Advantage.
VRTX
US$475.68
Vertex Pharmaceuticals
7D
1.8%
1Y
8.5%

VRTX: CF Cash Flows And Renal Data Will Shape Balanced Next Phase

Analysts have nudged their fair value estimate for Vertex Pharmaceuticals higher to about $504, citing a slightly richer assumed future P/E multiple and modestly stronger revenue growth expectations, even as they factor in a lower profit margin and a slightly higher discount rate. Analyst Commentary Recent Street research on Vertex Pharmaceuticals has turned more constructive, with several firms shifting to more positive ratings and setting price targets above the current fair value estimate.
ONC
US$350.00
BeOne Medicines
7D
3.3%
1Y
54.3%

ONC: Hematology Franchise And Oncology Pipeline Are Expected To Re Rate Shares

Analysts have lifted their price targets on BeOne Medicines into the low US$400s, and our fair value estimate has edged up to about US$508 as they highlight what they see as underappreciation of the pipeline, the potential for best in class hematology assets, and additional upside from oncology trial updates. Analyst Commentary Recent Street research on BeOne Medicines has tilted clearly positive, with a series of price target increases into the low US$400s range and at least one rating upgrade.