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U.S. Healthcare Sector Analysis

UpdatedAug 31, 2026
DataAggregated Company Financials
Companies1379
  • 7D-2.0%
  • 3M17.0%
  • 1Y26.5%
  • YTD11.0%

Over the last 7 days, the Healthcare industry has dropped 2.1%, driven by a pullback from Eli Lilly of 6.4%. On the other hand Veeva Systems is actually up 12%. Over the past 12 months, the industry was up 27%. As for the next few years, earnings are expected to grow by 20% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 31 Aug 2026US$7.2tUS$3.4tUS$116.3b26.5x62.2x2.1x
Wed, 29 Jul 2026US$6.9tUS$3.3tUS$126.2b27.2x54.9x2.1x
Fri, 26 Jun 2026US$6.6tUS$3.3tUS$121.7b24.3x53.9x2x
Sun, 24 May 2026US$6.4tUS$3.3tUS$122.9b23.4x51.9x1.9x
Tue, 21 Apr 2026US$6.4tUS$3.3tUS$121.1b24.3x52.4x1.9x
Thu, 19 Mar 2026US$6.2tUS$3.3tUS$124.4b23x50.1x1.9x
Sat, 14 Feb 2026US$6.5tUS$3.3tUS$126.4b26.8x51.4x2x
Mon, 12 Jan 2026US$6.6tUS$3.2tUS$136.3b26.5x48.5x2.1x
Wed, 10 Dec 2025US$6.2tUS$3.2tUS$133.9b25.5x46.7x2x
Fri, 07 Nov 2025US$6.0tUS$3.2tUS$131.7b24.3x45.6x1.9x
Sun, 05 Oct 2025US$6.0tUS$3.1tUS$137.8b24.7x43.8x2x
Tue, 02 Sep 2025US$5.7tUS$3.1tUS$137.5b23.3x41.4x1.8x
Thu, 31 Jul 2025US$5.5tUS$3.1tUS$126.6b24.1x43.5x1.8x
Sat, 28 Jun 2025US$5.5tUS$3.0tUS$127.5b24.8x43.1x1.8x
Mon, 26 May 2025US$5.3tUS$3.0tUS$126.9b22.6x41.7x1.7x
Wed, 23 Apr 2025US$5.2tUS$2.7tUS$97.7b24.5x53x2x
Fri, 21 Mar 2025US$5.7tUS$2.6tUS$81.5b26.8x70.3x2.2x
Sun, 16 Feb 2025US$5.8tUS$2.6tUS$82.1b26.8x70.8x2.2x
Tue, 14 Jan 2025US$5.8tUS$2.9tUS$78.9b28.2x74x2x
Thu, 12 Dec 2024US$6.0tUS$2.9tUS$77.5b28.1x78x2.1x
Sat, 09 Nov 2024US$6.2tUS$2.9tUS$75.9b28.3x82.1x2.1x
Mon, 07 Oct 2024US$6.2tUS$2.8tUS$60.0b29.7x102.5x2.2x
Wed, 04 Sep 2024US$6.3tUS$2.8tUS$60.4b31.1x104.9x2.2x
Fri, 02 Aug 2024US$6.4tUS$2.9tUS$68.5b32.9x92.7x2.2x
Sun, 30 Jun 2024US$6.2tUS$2.8tUS$62.2b30.5x99.3x2.2x
Tue, 28 May 2024US$6.1tUS$2.8tUS$63.7b30.9x96.4x2.2x
Thu, 25 Apr 2024US$6.0tUS$2.8tUS$84.1b31.3x71.8x2.2x
Sat, 23 Mar 2024US$6.2tUS$2.8tUS$82.1b31.8x75.9x2.2x
Mon, 19 Feb 2024US$6.3tUS$2.8tUS$82.4b30.1x75.9x2.2x
Wed, 17 Jan 2024US$6.4tUS$2.8tUS$90.8b32.2x70.2x2.3x
Fri, 15 Dec 2023US$6.1tUS$2.8tUS$91.5b32.5x67.1x2.2x
Sun, 12 Nov 2023US$5.7tUS$2.8tUS$91.0b26.5x62.1x2x
Tue, 10 Oct 2023US$5.9tUS$2.8tUS$98.3b26.1x59.9x2.1x
Thu, 07 Sep 2023US$6.0tUS$2.8tUS$98.6b27.5x61x2.2x
Price to Earnings Ratio

61x


Total Market Cap: US$6.0tTotal Earnings: US$98.6bTotal 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 62.2x 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 5.7% 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 Market0.67%
Healthcare-2.04%
Healthtech7.82%
Life Sciences-0.66%
Medical Equipment-1.30%
Healthcare Services-1.38%
Biotech-1.94%
Pharma-3.26%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 55.5x.
    • Analysts are expecting annual earnings growth of 18.6%, 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 28% over the next 5 years.
  • However this is lower than its past earnings growth rate of 65% per year.
  • In contrast, the Healthcare Services 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
VEEV Veeva SystemsUS$276.6911.4%
+US$4.4b		2.8%PE44.1x
MCK McKessonUS$893.392.2%
+US$2.3b		30.1%PE22.7x
RMD ResMedUS$240.333.8%
+US$1.3b		-12.5%PE22.8x
SYK StrykerUS$330.690.9%
+US$1.1b		-15.5%PE34x
PURR Hyperliquid StrategiesUS$11.619.1%
+US$864.5m		n/aPE9x

Latest News

PURR
US$11.61
Hyperliquid Strategies
7D
9.1%
1Y
n/a
VEEV
US$276.69
Veeva Systems
7D
11.4%
1Y
2.8%
ABT
US$112.47
Abbott Laboratories
7D
-3.6%
1Y
-15.2%
LLY
US$1,174.61
Eli Lilly
7D
-5.8%
1Y
60.3%
AMGN
US$432.42
Amgen
7D
-2.6%
1Y
50.3%
ABBV
US$255.48
AbbVie
7D
-3.4%
1Y
21.4%
MCK
US$893.39
McKesson
7D
2.2%
1Y
30.1%
SMMT
US$13.73
Summit Therapeutics
7D
7.9%
1Y
-42.1%
DHR
US$216.07
Danaher
7D
0.4%
1Y
5.0%
JNJ
US$268.04
Johnson & Johnson
7D
-1.8%
1Y
51.3%
MRK
US$148.35
Merck
7D
-1.5%
1Y
76.4%
Narrative Update • Aug 26

MRK: Cancer Vaccine Breakthrough Will Support Higher Future Oncology Weighted P E Multiple

Merck's analyst fair value estimate has moved from $155 to $186 as analysts factor in stronger revenue growth assumptions, higher projected profit margins, and a modestly higher future P/E multiple following recent updates to its cancer vaccine and oncology pipeline. Analyst Commentary Recent research on Merck highlights a clear divide between bullish analysts who see the cancer vaccine and oncology pipeline as meaningful long term drivers, and more cautious voices focused on valuation and the upcoming Keytruda loss of exclusivity.
REGN
US$794.19
Regeneron Pharmaceuticals
7D
-4.8%
1Y
36.8%
Seeking Alpha • Aug 25

Regeneron: Why I Still See Upside After The Rally

Summary Regeneron Pharmaceuticals ends August on a high note. The decline in U.S. sales of Eylea following the launch of biosimilars is no longer putting pressure on REGN stock. That’s because REGN's Dupixent sales reached €5.15 billion in the second quarter, up 23.6% sequentially. Moreover, on August 19, the FDA approved Pasatru for the treatment of people living with fibrodysplasia ossificans progressiva, a genetic musculoskeletal condition. In this article, I explain why Regeneron, one of my top picks in the IMIDs market, still offers an appealing risk/reward profile. Read the full article on Seeking Alpha
UNH
US$392.95
UnitedHealth Group
7D
-1.5%
1Y
26.8%
Narrative Update • Aug 25

UNH: Medicare Advantage Recovery Will Support Durable Earnings Resilience

Analysts have lifted the UnitedHealth Group fair value estimate from $492.00 to $529.00. This reflects updated models that factor in recent Q2 earnings strength, Medicare recovery and improved margin expectations at UnitedHealthcare and Optum Health.
SYK
US$330.69
Stryker
7D
0.9%
1Y
-15.5%
RVTY
US$128.80
Revvity
7D
4.7%
1Y
42.9%
Narrative Update • Aug 20

RVTY: Elevated Multiple And Sector Headwinds Will Challenge 2026 Outlook

Analysts have lifted the fair value estimate for Revvity stock from $90 to $100, pointing to updated price targets in the $115 to $130 range and research that highlights steady sector trends, healthier capital spending, and a higher assumed future P/E multiple, despite more conservative profit margin assumptions. Analyst Commentary on Revvity Recent Street research on Revvity points to a mix of optimism and caution.
RMD
US$240.33
ResMed
7D
3.8%
1Y
-12.5%