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

U.S. Healthcare Services Industry Analysis

UpdatedJan 17, 2026
DataAggregated Company Financials
Companies164
  • 7D-1.2%
  • 3M-2.2%
  • 1Y-10.9%
  • YTD0.6%

Over the last 7 days, the Healthcare Services industry has dropped 1.2%, driven by UnitedHealth Group declining 3.8%. Meanwhile, Cencora actually outperformed within the industry, gaining 5.7% in the last week. Overall the industry is down 11% in 12 months. As for the next few years, earnings are expected to grow by 19% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 17 Jan 2026US$932.4bUS$2.1tUS$34.8b23.5x26.8x0.4x
Mon, 15 Dec 2025US$919.5bUS$2.1tUS$34.8b23.7x26.4x0.4x
Wed, 12 Nov 2025US$873.3bUS$2.1tUS$34.8b21.9x25.1x0.4x
Fri, 10 Oct 2025US$1.0tUS$2.1tUS$49.3b21.5x20.8x0.5x
Sun, 07 Sep 2025US$861.2bUS$2.1tUS$49.3b21.6x17.5x0.4x
Tue, 05 Aug 2025US$737.1bUS$2.1tUS$49.2b20x15x0.4x
Thu, 03 Jul 2025US$912.5bUS$2.1tUS$52.7b22.2x17.3x0.4x
Sat, 31 May 2025US$861.1bUS$2.1tUS$52.5b21.2x16.4x0.4x
Mon, 28 Apr 2025US$922.3bUS$1.7tUS$49.6b23.8x18.6x0.5x
Wed, 26 Mar 2025US$1.0tUS$1.7tUS$41.5b24x24.8x0.6x
Fri, 21 Feb 2025US$1.0tUS$1.7tUS$41.3b24.3x24.9x0.6x
Sun, 19 Jan 2025US$1.0tUS$2.0tUS$42.3b23x24.6x0.5x
Tue, 17 Dec 2024US$1.0tUS$2.0tUS$41.4b22.8x25.2x0.5x
Thu, 14 Nov 2024US$1.2tUS$2.0tUS$41.4b24.8x28.5x0.6x
Sat, 12 Oct 2024US$1.2tUS$1.9tUS$43.4b24.7x27.6x0.6x
Mon, 09 Sep 2024US$1.2tUS$1.9tUS$43.3b26.6x28x0.6x
Wed, 07 Aug 2024US$1.2tUS$1.9tUS$43.3b27.2x27.1x0.6x
Fri, 05 Jul 2024US$1.1tUS$1.9tUS$43.4b24.8x24.8x0.6x
Sun, 02 Jun 2024US$1.1tUS$1.9tUS$43.3b27x25.3x0.6x
Tue, 30 Apr 2024US$1.1tUS$1.9tUS$42.7b26x25.9x0.6x
Thu, 28 Mar 2024US$1.1tUS$1.8tUS$49.6b24.7x22.9x0.6x
Sat, 24 Feb 2024US$1.2tUS$1.8tUS$50.1b24x23.1x0.6x
Mon, 22 Jan 2024US$1.1tUS$1.8tUS$50.8b23.9x22x0.6x
Wed, 20 Dec 2023US$1.1tUS$1.8tUS$51.2b22.5x22.4x0.6x
Fri, 17 Nov 2023US$1.2tUS$1.8tUS$51.2b22.5x22.7x0.6x
Sun, 15 Oct 2023US$1.1tUS$1.8tUS$47.4b22.8x24.2x0.7x
Tue, 12 Sep 2023US$1.1tUS$1.8tUS$46.8b21.5x23.2x0.6x
Thu, 10 Aug 2023US$1.1tUS$1.8tUS$46.8b22.2x24.2x0.6x
Sat, 08 Jul 2023US$1.1tUS$1.7tUS$46.1b23.1x23.2x0.6x
Mon, 05 Jun 2023US$1.1tUS$1.7tUS$45.7b22.5x24.4x0.7x
Wed, 03 May 2023US$1.1tUS$1.7tUS$46.2b22.5x24x0.7x
Fri, 31 Mar 2023US$1.0tUS$1.4tUS$44.4b21.8x23.4x0.7x
Sun, 26 Feb 2023US$1.1tUS$1.4tUS$44.0b22.1x25x0.8x
Tue, 24 Jan 2023US$1.1tUS$1.4tUS$45.0b21.2x24.9x0.8x
Price to Earnings Ratio

24.9x


Total Market Cap: US$1.1tTotal Earnings: US$45.0bTotal Revenue: US$1.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Services Industry Price to Earnings3Y Average 23.4x202420252026
Current Industry PE
  • Investors are optimistic on the American Healthcare industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 26.8x which is higher than its 3-year average PE of 23.4x.
  • The industry is trading close to its 3-year average PS ratio of 0.58x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have declined 8.2% per year over the last three years.
  • Meanwhile revenues for these companies have grown 15% 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, which has decreased profits.

Industry Trends

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

US Market-0.34%
Healthcare-1.18%
Healthcare Services-1.25%
Healthcare Distributors5.38%
Healthcare Services-0.67%
Healthcare Facilities-1.70%
Managed Healthcare-2.58%
Industry PE
  • Investors are most optimistic about the Healthcare Distributors industry which is trading above its 3-year average PE ratio of 39.5x.
    • Analysts are expecting annual earnings growth of 17.2%, which is higher than its past year's earnings growth of 13.7% per year.
  • Investors are most pessimistic about the Healthcare Facilities industry, which is trading below its 3-year average of 20.8x.
Forecasted Growth
  • Analysts are most optimistic on the Healthcare Services industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is better than its past earnings growth rate of 16% per year.
  • In contrast, the Healthcare Facilities industry is expected to see its earnings grow by 13% 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
COR CencoraUS$354.855.7%
+US$3.7b		46.6%PE44.3x
MCK McKessonUS$840.463.0%
+US$3.0b		41.8%PE25.7x
CAH Cardinal HealthUS$212.455.6%
+US$2.7b		68.3%PE31.6x
DGX Quest DiagnosticsUS$189.498.6%
+US$1.7b		25.3%PE21.9x
LH Labcorp HoldingsUS$270.877.6%
+US$1.6b		13.5%PE26.3x

Latest News

LH
US$270.87
Labcorp Holdings
7D
7.6%
1Y
13.5%
HQY
US$85.37
HealthEquity
7D
-9.3%
1Y
-16.6%
HCA
US$469.29
HCA Healthcare
7D
-0.6%
1Y
51.2%
UNH
US$331.02
UnitedHealth Group
7D
-3.8%
1Y
-35.1%

UnitedHealth Group (UNH): Scale, Access, and the Legal Realities of Healthcare

UnitedHealth Group (NYSE: UNH) sits at the center of the U.S. healthcare system. As both a leading insurer and a growing healthcare services provider through Optum, the company touches nearly every stage of patient care—from coverage decisions to clinical delivery and data analytics.
WGS
US$108.08
GeneDx Holdings
7D
-20.2%
1Y
55.6%
OPCH
US$36.03
Option Care Health
7D
13.3%
1Y
23.6%
MCK
US$840.46
McKesson
7D
3.0%
1Y
41.8%

MCK: North American Pharma Strength Will Support FY26 Core AOI Framework

Narrative Update: McKesson Analysts have lifted their McKesson price targets toward a range of about $900 to $1,000, citing solid North American Pharma momentum, modeled core AOI growth of around 7% for FY26, and a robust demand backdrop reflected in peers' recent results. Analyst Commentary Recent research updates reflect a more constructive stance on McKesson, with higher price targets tied to underlying business trends and peer readthroughs rather than short term trading factors.
CAH
US$212.45
Cardinal Health
7D
5.6%
1Y
68.3%

CAH: Specialty Expansion And Policy Shifts Will Shape Future Risk Reward Balance

Analysts have nudged their price targets on Cardinal Health higher, reflected in our fair value estimate moving from $216.60 to $222.20. They highlight strong core Pharma execution, improving margins, and growing confidence in the specialty build out and Solaris driven earnings outlook.
RDNT
US$70.99
RadNet
7D
-9.2%
1Y
18.6%

RDNT: Outpatient Imaging And AI Adoption Will Drive Future Outperformance

Analysts have raised their price target on RadNet to about US$92, citing what they view as reasonable 2025 to 2028 goals, supportive Medicare reimbursement trends, potential capital deployment upside, and growing contributions from AI and outpatient imaging demand. Analyst Commentary Recent research has focused on how RadNet's outpatient imaging footprint, AI initiatives, and long term financial targets could support its valuation and growth ambitions.
CVS
US$78.60
CVS Health
7D
-2.1%
1Y
49.4%

CVS Health: Rebuilding a Healthcare Giant From the Inside Out

CVS Health (NYSE: CVS) has not been an easy stock to own. Over the past year, investors have watched margins compress, guidance get revised, and sentiment sour as healthcare cost inflation collided with reimbursement pressure.
COR
US$354.85
Cencora
7D
5.7%
1Y
46.6%

COR: Global 3PL Buildout And Higher Dividend Will Support Long-Term Upside

Analysts have nudged their price target on Cencora higher to about $388, citing slightly lower modeled revenue growth, a modestly stronger profit margin, and a small uptick in assumed future P/E as key drivers of the updated view. What's in the News Cencora announced investments to expand its third party logistics capabilities in the United States and Europe, including broader specialty logistics services for pharmaceutical companies worldwide.
DGX
US$189.49
Quest Diagnostics
7D
8.6%
1Y
25.3%
MOH
US$191.40
Molina Healthcare
7D
5.5%
1Y
-33.1%

MOH: Government Managed Care Contracts Will Drive Future Earnings Repricing

Analysts have reset their price targets on Molina Healthcare, with our fair value estimate moving from US$279.05 to US$251.88 as they factor in tighter profit margin expectations, a slightly higher discount rate, and a higher future P/E multiple supported by mixed, but generally constructive, research on Medicare Advantage and Medicaid exposure. Analyst Commentary Recent Street commentary on Molina Healthcare reflects a split view, with some firms trimming expectations after Q3 while others see room for recovery in government managed care, particularly around Medicare Advantage and Medicaid valuations.
CI
US$272.21
Cigna Group
7D
-2.4%
1Y
-4.1%

CI: Massive Share Buyback And Clinic Expansion Will Support Future Earnings Upside

Analysts have slightly reduced their price target for Cigna Group, trimming fair value by about $0.69 to $325.57 as they factor in a more moderate revenue growth outlook, along with a small improvement in expected profit margins and future P/E assumptions. What's in the News Hankook Tire America Corp.
DVA
US$104.74
DaVita
7D
-6.0%
1Y
-37.0%

DVA: Clinical Research Pipeline And Buybacks Will Support Earnings Despite Reimbursement Headwinds

Analysts have trimmed their price target for DaVita by about $1.50 to $143, reflecting slightly higher discount rate and P/E assumptions while keeping growth and margin expectations broadly in line. What's in the News DaVita plans to unveil six new studies at the American Society of Nephrology's Kidney Week 2025 in Houston, focused on dialysis treatments, middle molecule clearance, access to transplantation and end of life care (Key Developments).
ELV
US$374.87
Elevance Health
7D
0.5%
1Y
-2.7%

ELV: ACA Subsidy Uncertainty Will Pressure Membership And Earnings Visibility

Analysts now place fair value for Elevance Health at $320, down from $331, reflecting updated price targets that balance slightly higher revenue growth and margin assumptions with a lower future P/E and regulatory and membership headwinds highlighted in recent research. Analyst Commentary Recent research on Elevance Health points to a mixed setup, with some firms lifting price targets while others trim expectations or initiate coverage with a more cautious stance.