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U.S. Pharma Industry Analysis

UpdatedJul 06, 2026
DataAggregated Company Financials
Companies319
  • 7D1.4%
  • 3M14.5%
  • 1Y48.6%
  • YTD14.8%

The Pharma industry is up 1.4% in the last week, with Johnson & Johnson up 1.8%. This takes the industry's 12 month performance to a gain of 49%. As for the next few years, earnings are expected to grow by 14% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 06 Jul 2026US$2.6tUS$425.2bUS$65.8b15.4x39.6x6.1x
Wed, 03 Jun 2026US$2.3tUS$424.1bUS$66.3b14.8x35.2x5.5x
Fri, 01 May 2026US$2.1tUS$408.2bUS$66.9b16.1x32.1x5.3x
Sun, 29 Mar 2026US$2.2tUS$405.9bUS$71.7b16.7x30.7x5.4x
Tue, 24 Feb 2026US$2.4tUS$411.5bUS$73.9b19.9x31.9x5.7x
Thu, 22 Jan 2026US$2.3tUS$404.6bUS$73.2b19.6x31x5.6x
Sat, 20 Dec 2025US$2.2tUS$402.8bUS$71.4b19.8x31.1x5.5x
Mon, 17 Nov 2025US$2.1tUS$402.8bUS$71.4b18.8x29.5x5.2x
Wed, 15 Oct 2025US$1.9tUS$389.2bUS$63.5b18.1x29.6x4.8x
Fri, 12 Sep 2025US$1.8tUS$387.9bUS$60.9b19.1x29.3x4.6x
Sun, 10 Aug 2025US$1.6tUS$387.9bUS$60.7b18.4x27x4.2x
Tue, 08 Jul 2025US$1.7tUS$382.7bUS$61.3b18.1x28.5x4.6x
Thu, 05 Jun 2025US$1.7tUS$382.7bUS$61.2b17.9x27.7x4.4x
Sat, 03 May 2025US$1.7tUS$382.7bUS$63.7b17.2x27.3x4.5x
Mon, 31 Mar 2025US$1.8tUS$380.6bUS$41.3b15.8x44.8x4.9x
Wed, 26 Feb 2025US$1.9tUS$381.1bUS$39.2b18.2x48.9x5x
Fri, 24 Jan 2025US$1.8tUS$370.4bUS$30.5b18.4x57.9x4.8x
Sun, 22 Dec 2024US$1.8tUS$369.4bUS$31.1b16.7x57.2x4.8x
Tue, 19 Nov 2024US$1.8tUS$373.9bUS$30.5b19x58.5x4.8x
Thu, 17 Oct 2024US$2.0tUS$365.3bUS$23.7b18.8x85.8x5.6x
Sat, 14 Sep 2024US$2.0tUS$364.2bUS$25.5b18.8x80.1x5.6x
Mon, 12 Aug 2024US$2.0tUS$362.1bUS$22.0b16.7x89.6x5.4x
Wed, 10 Jul 2024US$2.0tUS$357.6bUS$13.8b15.4x141.9x5.5x
Fri, 07 Jun 2024US$1.9tUS$358.3bUS$14.1b15.5x135.6x5.3x
Sun, 05 May 2024US$1.8tUS$358.0bUS$13.8b21.4x131.1x5.1x
Tue, 02 Apr 2024US$1.9tUS$355.2bUS$22.7b22.5x84.2x5.4x
Thu, 29 Feb 2024US$1.9tUS$355.1bUS$23.8b24.3x80x5.4x
Sat, 27 Jan 2024US$1.8tUS$375.2bUS$33.9b24.6x51.6x4.7x
Mon, 25 Dec 2023US$1.7tUS$375.1bUS$33.9b32x49.3x4.4x
Wed, 22 Nov 2023US$1.6tUS$375.1bUS$33.9b25.8x48.1x4.4x
Fri, 20 Oct 2023US$1.7tUS$382.7bUS$44.7b17.6x37x4.3x
Sun, 17 Sep 2023US$1.7tUS$381.8bUS$43.9b18x39.2x4.5x
Tue, 15 Aug 2023US$1.8tUS$381.5bUS$43.8b19x40.5x4.7x
Thu, 13 Jul 2023US$1.7tUS$392.8bUS$60.2b18.2x27.5x4.2x
Price to Earnings Ratio

27.5x


Total Market Cap: US$1.7tTotal Earnings: US$60.2bTotal Revenue: US$392.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Pharma Industry Price to Earnings3Y Average 54.3x202420252026
Current Industry PE
  • Investors are pessimistic on the American Pharmaceuticals 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 39.6x which is lower than its 3-year average PE of 54.3x.
  • The 3-year average PS ratio of 5.0x is lower than the industry's current PS ratio of 6.1x.
Past Earnings Growth
  • The earnings for companies in the Pharmaceuticals industry have grown 3.0% per year over the last three years.
  • Revenues for these companies have grown 2.7% 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 industry?

US Market1.63%
Healthcare2.29%
Pharma1.37%
Pharma1.37%
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
JNJ Johnson & JohnsonUS$263.041.8%
+US$10.9b		69.4%PE30.1x
TEVA Teva Pharmaceutical IndustriesUS$34.644.0%
+US$1.5b		105.6%PE25.8x
ZTS ZoetisUS$74.802.1%
+US$649.8m		-52.4%PE11.7x
CRNX Crinetics PharmaceuticalsUS$42.2314.3%
+US$557.8m		45.3%PS246.4x
VTRS ViatrisUS$16.702.9%
+US$547.3m		81.5%PS1.3x

Latest News

EWTX
US$39.56
Edgewise Therapeutics
7D
-3.3%
1Y
213.7%
ZTS
US$74.80
Zoetis
7D
2.1%
1Y
-52.4%
Seeking Alpha • 23h

Zoetis: The 60% Decline Was Justified, But Shares Are Finally Buyable

Summary Zoetis has seen its valuation compress dramatically, now trading at just 12x trailing earnings after a 52% 12-month share price decline. Despite decelerating growth—Q1 2026 saw just 3% revenue growth—international and livestock segments are offsetting U.S. pet care weakness. Dividend growth remains robust, with a 12-year streak and a current yield of 2.8% backed by a solid payout ratio. At current levels, ZTS offers a solid risk/reward, with fair value estimates suggesting the potential for 50% upside. Read the full article on Seeking Alpha
MRK
US$129.56
Merck
7D
0.1%
1Y
60.1%
BMY
US$58.13
Bristol-Myers Squibb
7D
-0.7%
1Y
25.0%
Seeking Alpha • Jul 03

Bristol-Myers Squibb: Cash Flow Machine, Outsized Growth Portfolio, And Inflation Beating Incomes

Summary BMY’s growth portfolio now comprises 54.1% of revenues and delivered +9% YoY growth in FQ1’26 against the legacy portfolio's slower erosion, supporting further upside to the currently conservative FY2026 guidance. Strategic partnerships with Jiangsu Hengrui, accretive M&As, and strong uptake of Opdivo Qvantig underpin the company's multi-pronged portfolio renewal efforts, despite the near-term IPRD noise. BMY's intermediate-term top/bottom-line growth prospects are likely to underwhelm due to LOE risks from Eliquis/Opdivo, albeit with secure dividend payouts at 39.2% of free cash flow. I reiterate my Buy rating for patient, income-oriented investors, with the recommendation to accumulate at yields above 4.2% for an inflation beating income thesis. Read the full article on Seeking Alpha
JNJ
US$263.04
Johnson & Johnson
7D
1.8%
1Y
69.4%
Narrative Update • Jul 03

JNJ: Drug Pipeline Optimism Will Face Pressure From Medicare Pricing Rules

For Johnson & Johnson, the analyst price target has been revised higher. The updated fair value estimate has moved from about $181.77 to $212.24 as analysts factor in refreshed revenue growth assumptions, slightly adjusted discount and margin inputs, and a higher future P/E in light of recent research pointing to ongoing new drug momentum and broadly supportive earnings expectations.
DFTX
US$44.19
Definium Therapeutics
7D
-5.1%
1Y
513.8%
VTRS
US$16.70
Viatris
7D
2.9%
1Y
81.5%
LLY
US$1,213.91
Eli Lilly
7D
-1.3%
1Y
57.1%
TEVA
US$34.64
Teva Pharmaceutical Industries
7D
4.0%
1Y
105.6%
CRNX
US$42.23
Crinetics Pharmaceuticals
7D
14.3%
1Y
45.3%
PFE
US$24.32
Pfizer
7D
-0.2%
1Y
-3.6%
LQDA
US$78.93
Liquidia
7D
5.1%
1Y
534.0%
INDV
US$39.80
Indivior Pharmaceuticals
7D
-3.5%
1Y
155.9%
Narrative Update • Jun 26

INDV: Raised Guidance And Buybacks Will Support A Turnaround Repricing

Analysts have lifted their price target for Indivior Pharmaceuticals from $50 to about $58, citing expectations for improved revenue growth, a slightly higher discount rate, adjusted profit margins, and a modestly higher future P/E multiple. These expectations are supported by recent research highlighting the company's turnaround plan and its focus on accelerating Sublocade and profitability.
AGMB
US$12.65
AgomAb Therapeutics
7D
-29.0%
1Y
n/a
JAZZ
US$243.47
Jazz Pharmaceuticals
7D
2.4%
1Y
126.3%
Narrative Update • Jun 23

JAZZ: HER2 GEA Priority Review Will Support Future Oncology Leadership Narrative

Analysts have lifted the central analyst price target for Jazz Pharmaceuticals stock from $225.53 to $257.00, pointing to stronger conviction in Ziihera's potential uptake in gastroesophageal adenocarcinoma and biliary tract cancer, a firmer outlook for the oncology portfolio, and perceived resilience of the Xywav franchise. Analyst Commentary Recent research on Jazz Pharmaceuticals highlights a clear split between bullish analysts focused on Ziihera driven growth and oncology expansion, and more cautious voices focused on neurology concentration risk and competitive pressure.
BLTE
US$146.63
Belite Bio
7D
-5.2%
1Y
150.1%
Analysis Article • Jun 17

Belite Bio (BLTE) Stock Could Be 35% Undervalued After Tinlarebant NDA Submission

Why Belite Bio Stock Is Back in Focus After Tinlarebant NDA Milestone Belite Bio (BLTE) is drawing attention after completing its rolling New Drug Application submission to the FDA for tinlarebant, an oral therapy candidate for Stargardt disease type 1, a rare inherited retinal condition with no approved treatments. See our latest analysis for Belite Bio. Belite Bio’s latest regulatory milestone comes after a period where momentum has cooled in the share price, with the stock down 14.35% on a...