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U.S. Healthcare Sector Analysis

UpdatedFeb 16, 2026
DataAggregated Company Financials
Companies1385
  • 7D-1.1%
  • 3M3.1%
  • 1Y7.4%
  • YTD-0.3%

Over the last 7 days, the Healthcare industry has dropped 1.1%, driven by a pullback from Eli Lilly of 1.7%. Meanwhile, UnitedHealth Group actually outperformed within the industry, gaining 6.0% in the last week. Over the past 12 months, the industry was up 7.4%. As for the next few years, earnings are expected to grow by 16% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 16 Feb 2026US$6.5tUS$3.3tUS$128.8b26.5x50.8x2x
Wed, 14 Jan 2026US$6.6tUS$3.2tUS$136.3b26.8x48.5x2.1x
Fri, 12 Dec 2025US$6.3tUS$3.2tUS$134.1b26.2x47.2x2x
Sun, 09 Nov 2025US$6.0tUS$3.2tUS$133.5b25.5x45x1.9x
Tue, 07 Oct 2025US$6.0tUS$3.1tUS$137.8b24.6x43.8x2x
Thu, 04 Sep 2025US$5.7tUS$3.1tUS$137.6b23x41.5x1.8x
Sat, 02 Aug 2025US$5.4tUS$3.1tUS$126.5b23.2x42.6x1.7x
Mon, 30 Jun 2025US$5.5tUS$3.0tUS$127.5b24.8x43.1x1.8x
Wed, 28 May 2025US$5.3tUS$3.0tUS$126.9b22.9x41.7x1.7x
Fri, 25 Apr 2025US$5.3tUS$2.7tUS$98.2b25.4x54.2x2x
Sun, 23 Mar 2025US$5.7tUS$2.6tUS$81.8b26.6x69.9x2.2x
Tue, 18 Feb 2025US$5.8tUS$2.6tUS$82.1b26.7x70.8x2.2x
Thu, 16 Jan 2025US$5.8tUS$2.9tUS$78.9b27.7x73.9x2x
Sat, 14 Dec 2024US$5.9tUS$2.9tUS$77.7b28.3x76.1x2x
Mon, 11 Nov 2024US$6.3tUS$2.9tUS$76.0b28.3x82.8x2.2x
Wed, 09 Oct 2024US$6.1tUS$2.8tUS$60.1b29.4x101.7x2.2x
Fri, 06 Sep 2024US$6.3tUS$2.8tUS$60.4b31.3x104.1x2.2x
Sun, 04 Aug 2024US$6.4tUS$2.9tUS$63.7b31x99.9x2.2x
Tue, 02 Jul 2024US$6.2tUS$2.8tUS$62.2b30.3x99.3x2.2x
Thu, 30 May 2024US$6.1tUS$2.8tUS$64.2b29.7x94.7x2.2x
Sat, 27 Apr 2024US$6.0tUS$2.8tUS$68.2b31.5x87.7x2.1x
Mon, 25 Mar 2024US$6.2tUS$2.8tUS$82.2b31.8x75.9x2.2x
Wed, 21 Feb 2024US$6.2tUS$2.8tUS$82.5b30.5x75.4x2.2x
Fri, 19 Jan 2024US$6.3tUS$2.8tUS$90.8b32.2x69.4x2.2x
Sun, 17 Dec 2023US$6.1tUS$2.8tUS$91.5b32.3x66.5x2.2x
Tue, 14 Nov 2023US$5.7tUS$2.8tUS$91.1b26.5x62.6x2x
Thu, 12 Oct 2023US$5.9tUS$2.8tUS$98.3b25.9x59.9x2.1x
Sat, 09 Sep 2023US$6.1tUS$2.8tUS$98.6b26.7x61.9x2.2x
Mon, 07 Aug 2023US$6.1tUS$2.8tUS$100.3b28.7x60.9x2.2x
Wed, 05 Jul 2023US$6.0tUS$2.7tUS$110.2b26.4x54.4x2.2x
Fri, 02 Jun 2023US$5.9tUS$2.7tUS$110.5b24.7x53.1x2.2x
Sun, 30 Apr 2023US$6.0tUS$2.5tUS$118.4b24.7x50.4x2.4x
Tue, 28 Mar 2023US$5.7tUS$2.5tUS$124.2b23.8x45.8x2.3x
Thu, 23 Feb 2023US$5.8tUS$2.5tUS$131.3b23.9x44.3x2.4x
Price to Earnings Ratio

44.3x


Total Market Cap: US$5.8tTotal Earnings: US$131.3bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.3x202420252026
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 50.8x which is lower than its 3-year average PE of 65.3x.
  • 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 9.8% 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 Market-1.34%
Healthcare-1.06%
Healthcare Services2.86%
Pharma-0.38%
Biotech-1.06%
Medical Equipment-1.76%
Life Sciences-6.89%
Healthtech-7.23%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry, which is trading close to its 3-year average PE ratio of 56.3x.
    • Analysts are expecting annual earnings growth of 16.4%, which is higher than its past year's earnings growth of 7.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 21% 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 11% 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
UNH UnitedHealth GroupUS$293.196.3%
+US$15.8b		-44.0%PE22x
ABBV AbbVieUS$231.503.7%
+US$14.6b		20.0%PE96.8x
JNJ Johnson & JohnsonUS$243.452.0%
+US$11.7b		55.9%PE21.9x
MRK MerckUS$121.413.2%
+US$9.3b		46.3%PE16.5x
HCA HCA HealthcareUS$540.298.6%
+US$7.2b		70.9%PE17.8x

Latest News

BDX
US$175.89
Becton Dickinson
7D
-15.2%
1Y
-21.8%
RMD
US$252.55
ResMed
7D
-8.5%
1Y
8.4%

RMD: AI Sleep Therapy Personalization And Buyback Will Support Long Term Upside

Our updated ResMed narrative reflects a modest lift in the implied analyst price target to about $297.47, with analysts pointing to slightly higher assumed revenue growth, a small improvement in profit margins, and a marginally lower future P/E multiple as key drivers of the change. Analyst Commentary Recent Street research shows a cluster of upward price target revisions for ResMed, with several firms lifting their targets by between $3 and $15.
JNJ
US$243.45
Johnson & Johnson
7D
2.0%
1Y
55.9%
VRTX
US$491.47
Vertex Pharmaceuticals
7D
4.4%
1Y
7.1%
GILD
US$154.98
Gilead Sciences
7D
2.2%
1Y
48.9%
HCA
US$540.29
HCA Healthcare
7D
8.6%
1Y
70.9%
ICLR
US$93.00
ICON
7D
-39.8%
1Y
-50.1%
MCK
US$934.75
McKesson
7D
-2.9%
1Y
57.4%
AMGN
US$369.19
Amgen
7D
-1.8%
1Y
26.8%
MRK
US$121.41
Merck
7D
3.2%
1Y
46.3%
LLY
US$1,040.00
Eli Lilly
7D
-0.4%
1Y
23.2%

LLY: Government Pricing Deals Will Compress Obesity Franchise Economics Going Forward

Analysts have raised their fair value estimate for Eli Lilly from US$770 to about US$884 per share, reflecting updated assumptions on long term obesity opportunities, recent price target increases across several firms, and steady expectations around margins and future P/E multiples. Analyst Commentary The latest batch of research on Eli Lilly revolves around its weight loss and cardiometabolic franchises, expectations for new product launches, and the implications of recent policy developments on pricing and access.
ABBV
US$231.50
AbbVie
7D
3.7%
1Y
20.0%

ABBV: Future Returns Will Depend On Immunology Pipeline Clarity And M&A Uncertainty

Analysts have trimmed their price targets for AbbVie by a small amount. This reflects slightly lower revenue growth and P/E assumptions, while also incorporating a modestly higher profit margin and recent mixed research views around competition and pipeline visibility.
IQV
US$166.94
IQVIA Holdings
7D
-13.4%
1Y
-13.7%
TMO
US$504.82
Thermo Fisher Scientific
7D
-7.7%
1Y
-5.1%

TMO: 2026 Tools Upside And AI Partnerships Will Reshape Earnings Power

Analysts have lifted their fair value estimate for Thermo Fisher Scientific from about $662 to roughly $743, citing updated views on discount rates, revenue growth, profit margins, and future P/E assumptions in light of recent price target increases across the Street. Analyst Commentary Street research around Thermo Fisher Scientific has turned more constructive, with a series of higher price targets that align with the updated fair value estimate.
UNH
US$293.19
UnitedHealth Group
7D
6.3%
1Y
-44.0%
ELV
US$346.80
Elevance Health
7D
5.9%
1Y
-10.9%

ELV: Medicare Advantage Policy Path Will Drive Future Margin Recovery Potential

The analyst price target for Elevance Health has been trimmed by about $5 to $389.55 as analysts factor in softer revenue growth and profit margin assumptions, partially offset by a slightly higher future P/E multiple and recent mixed target changes across the Street. Analyst Commentary Recent research on Elevance Health reflects a mix of optimism and caution, with several firms adjusting price targets in both directions and updating views on managed care, Medicare Advantage, and the broader policy backdrop.