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

U.S. Healthcare Sector Analysis

UpdatedAug 17, 2026
DataAggregated Company Financials
Companies1380
  • 7D0.8%
  • 3M15.9%
  • 1Y25.3%
  • YTD8.9%

Over the last 7 days, the Healthcare industry has remained flat, although notably Merck gained 3.8%. As for the the longer term, the industry is up 25% over the past 12 months. Earnings are forecast to grow by 20% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 17 Aug 2026US$7.1tUS$3.4tUS$115.7b25.7x61.3x2.1x
Wed, 15 Jul 2026US$6.9tUS$3.3tUS$122.0b25x56.5x2.1x
Fri, 12 Jun 2026US$6.4tUS$3.3tUS$122.2b23.1x52.7x1.9x
Sun, 10 May 2026US$6.2tUS$3.3tUS$123.8b22.9x50.2x1.9x
Tue, 07 Apr 2026US$6.2tUS$3.3tUS$127.9b22.5x48.5x1.9x
Thu, 05 Mar 2026US$6.5tUS$3.3tUS$126.3b25.6x51.5x2x
Sat, 31 Jan 2026US$6.5tUS$3.2tUS$126.6b27.8x51.1x2x
Mon, 29 Dec 2025US$6.6tUS$3.2tUS$135.2b26.5x48.5x2.1x
Wed, 26 Nov 2025US$6.4tUS$3.2tUS$133.6b26.7x48.3x2x
Fri, 24 Oct 2025US$6.1tUS$3.1tUS$140.8b25.5x43.1x2x
Sun, 21 Sep 2025US$5.7tUS$3.1tUS$137.6b23.9x41.4x1.8x
Tue, 19 Aug 2025US$5.7tUS$3.1tUS$136.9b23x41.3x1.8x
Thu, 17 Jul 2025US$5.4tUS$3.0tUS$127.9b23.3x42.6x1.8x
Sat, 14 Jun 2025US$5.6tUS$3.0tUS$127.4b23.5x43.8x1.8x
Mon, 12 May 2025US$5.4tUS$3.0tUS$126.6b24.2x42.4x1.8x
Wed, 09 Apr 2025US$5.2tUS$2.6tUS$81.6b24.1x63.6x2x
Fri, 07 Mar 2025US$5.9tUS$2.6tUS$79.1b27x74.2x2.2x
Sun, 02 Feb 2025US$6.1tUS$2.9tUS$85.1b27.8x72x2.1x
Tue, 31 Dec 2024US$5.8tUS$2.9tUS$79.3b27.5x73.4x2x
Thu, 28 Nov 2024US$6.1tUS$2.9tUS$77.1b28.5x79.4x2.1x
Sat, 26 Oct 2024US$6.1tUS$2.9tUS$59.1b29.1x102.6x2.1x
Mon, 23 Sep 2024US$6.3tUS$2.8tUS$60.1b30.1x104.6x2.2x
Wed, 21 Aug 2024US$6.2tUS$2.8tUS$55.9b31.9x110.8x2.2x
Fri, 19 Jul 2024US$6.4tUS$2.8tUS$60.8b31.3x105.5x2.3x
Sun, 16 Jun 2024US$6.2tUS$2.8tUS$62.4b29.9x99.1x2.2x
Tue, 14 May 2024US$6.1tUS$2.8tUS$63.9b30.6x95.7x2.2x
Thu, 11 Apr 2024US$6.2tUS$2.8tUS$85.2b32.1x72.4x2.2x
Sat, 09 Mar 2024US$6.3tUS$2.8tUS$82.9b32.5x75.9x2.3x
Mon, 05 Feb 2024US$6.4tUS$2.8tUS$76.4b31.9x84.1x2.3x
Wed, 03 Jan 2024US$6.3tUS$2.8tUS$90.3b32.5x69.9x2.2x
Fri, 01 Dec 2023US$5.8tUS$2.8tUS$91.4b28.4x63.8x2.1x
Sun, 29 Oct 2023US$5.5tUS$2.8tUS$99.5b24.1x55.6x2x
Tue, 26 Sep 2023US$5.9tUS$2.8tUS$98.5b27.9x60.2x2.1x
Thu, 24 Aug 2023US$6.1tUS$2.8tUS$99.0b28.4x61.8x2.2x
Price to Earnings Ratio

61.8x


Total Market Cap: US$6.1tTotal Earnings: US$99.0bTotal 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 61.3x 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 5.3% 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 Market0.63%
Healthcare0.82%
Healthtech4.69%
Medical Equipment2.68%
Pharma0.61%
Biotech0.54%
Life Sciences0.16%
Healthcare Services-0.18%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 55.6x.
    • Analysts are expecting annual earnings growth of 18.8%, 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 27% 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
MRK MerckUS$135.843.8%
+US$12.1b		61.3%PE105.6x
GILD Gilead SciencesUS$138.364.0%
+US$6.6b		17.3%PS5.6x
ABT Abbott LaboratoriesUS$111.252.4%
+US$4.6b		-14.6%PE35.6x
ABBV AbbVieUS$249.460.6%
+US$2.6b		20.8%PE70.3x
MDT MedtronicUS$91.272.1%
+US$2.4b		-1.7%PE24.3x

Latest News

LLY
US$1,180.16
Eli Lilly
7D
-4.2%
1Y
69.1%
MDT
US$91.27
Medtronic
7D
2.1%
1Y
-1.7%
TMO
US$588.29
Thermo Fisher Scientific
7D
-1.9%
1Y
20.7%
Seeking Alpha • Aug 16

Thermo Fisher Scientific: Biopharma Recovery And Share Gains Support The Upside

Summary Thermo Fisher Scientific is rated a Buy, supported by accelerating organic growth and improving Pharma and Biotech end markets. TMO’s recent acquisitions of Clario and Solventum’s Filtration and Separation business expand capabilities, enabling greater share of customer spending and revenue synergies. Q2 2026 results showed 10% revenue growth, 5% organic growth, and improved margins, with Pharma and Biotech driving mid-single-digit gains. Valuation is reasonable versus peers and history; with 9-10% expected EPS growth and potential for multiple expansion, risk/reward appears attractive. Read the full article on Seeking Alpha
ABBV
US$249.46
AbbVie
7D
0.6%
1Y
20.8%
GILD
US$138.36
Gilead Sciences
7D
4.0%
1Y
17.3%
JNJ
US$260.35
Johnson & Johnson
7D
-0.6%
1Y
47.7%
Seeking Alpha • Aug 15

Johnson & Johnson: Quality, But It Doesn't Deserve A Mid-20s Multiple Right Now

Summary Johnson & Johnson has delivered a 28% total return YTD, outperforming SPY and XLV, but now trades at a premium valuation. Despite solid Q2 results and raised FY 2026 guidance, JNJ's stock is deemed fully priced, warranting a reiterated hold rating. Key risks include MedTech growth softness, ongoing litigation, and macro uncertainties, while Pharma momentum drives guidance upgrades. Technically, JNJ remains in an uptrend, but negative RSI divergence and valuation suggest potential near-term consolidation. Read the full article on Seeking Alpha
UNH
US$401.73
UnitedHealth Group
7D
-1.7%
1Y
30.2%
BSX
US$51.83
Boston Scientific
7D
2.7%
1Y
-49.7%
DHR
US$202.45
Danaher
7D
-3.3%
1Y
-3.1%
Seeking Alpha • Aug 14

Danaher: 2027 Growth Reacceleration Should Drive Upside

Summary Danaher is rated a Buy, with revenue growth expected to accelerate in 2027 as respiratory headwinds fade and bioprocessing shipments recover. DHR’s valuation is reasonable, trading at a 12% discount to its five-year average P/E, supported by strong recurring revenues and operational excellence. Life Sciences segment shows robust recovery, with 5.5% core growth and margin expansion, driven by improved pharma spending and biotech funding. Bioprocessing order delays are temporary, with over $100 million in revenue shifting to 2027, positioning DHR for future upside. Read the full article on Seeking Alpha
VRTX
US$505.75
Vertex Pharmaceuticals
7D
-3.5%
1Y
29.7%
Seeking Alpha • Aug 14

Vertex Pharmaceuticals: I Was Wrong About Its Near-Term Prospects (Rating Upgrade)

Summary I was too cautious previously on Vertex Pharmaceuticals' prospects. Revenue from its cystic fibrosis franchise grew 10% quarter-on-quarter and 10.6% year-on-year to about $3.21 billion in Q2. On July 6, VRTX announced the acquisition of Crinetics Pharmaceuticals for about $10 billion, thereby strengthening its position in the endocrinology drugs market. The company raised its full-year 2026 revenue guidance from $12.95-13.1 billion to $13.1-$13.2 billion. In this article, I explain why I'm upgrading my Vertex rating from Hold to Buy. Read the full article on Seeking Alpha
IDXX
US$550.96
IDEXX Laboratories
7D
-7.5%
1Y
-13.6%
MDLN
US$35.74
Medline
7D
5.7%
1Y
n/a
Narrative Update • Aug 13

MDLN: FDA Compliance And Legal Overhang Will Shape Future Upside Potential

Analysts have trimmed their price target on Medline to $44.62 from $50.65 as they now factor in a slightly higher discount rate, more moderate revenue growth, a lower profit margin outlook, and a marginally higher future P/E assumption. What’s in the News for Medline Medline Inc.
MRK
US$135.84
Merck
7D
3.8%
1Y
61.3%
Narrative Update • Aug 12

MRK: Pipeline Execution And Patent Cliff Response Will Shape Future Earnings Balance

Merck's updated analyst price target framework now points to a fair value of $136.85, up from $132.78. Analysts link this shift to a series of higher Street targets that emphasize the company's dividend profile, pipeline progress, and M&A optionality.
ABT
US$111.25
Abbott Laboratories
7D
2.4%
1Y
-14.6%
CVS
US$97.16
CVS Health
7D
1.6%
1Y
38.5%
Seeking Alpha • Aug 10

CVS Health: I Wanted A Beat And Raise, I Got It, And I'm Still At 'Hold'

Summary CVS Health Corporation's strong Q2 results delivered revenue and earnings beats while management raised operating cash flow guidance to $11.5 billion. Aetna turnaround and improved medical benefit ratios boosted first half cash generation, helping drive recent stock gains. Management anticipates higher second half medical costs alongside 2027 headwinds from 340B pricing and pharmacy drug mix shifts. Strengthening cash flow supports deleveraging and dividend safety, but the recent CVS stock rally keeps the thesis at Hold. Read the full article on Seeking Alpha
SYK
US$339.21
Stryker
7D
-1.9%
1Y
-11.1%