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U.S. Healthcare Sector Analysis

UpdatedJul 15, 2026
DataAggregated Company Financials
Companies1406
  • 7D-3.9%
  • 3M7.6%
  • 1Y21.8%
  • YTD3.2%

Over the last 7 days, the Healthcare industry has dropped 3.9%, driven by a pullback from Eli Lilly of 6.7%. In the past year, the industry has gained 22%. As for the next few years, earnings are expected to grow by 18% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Sat, 22 Jul 2023US$6.2tUS$2.7tUS$110.9b26.9x55.5x2.2x
Price to Earnings Ratio

55.5x


Total Market Cap: US$6.2tTotal Earnings: US$110.9bTotal Revenue: US$2.7tTotal 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 56.5x 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 3.2% per year over the last three years.
  • Revenues for these companies have grown 6.6% 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 Market0.22%
Healthcare-3.87%
Life Sciences2.21%
Healthcare Services0.094%
Healthtech-0.88%
Biotech-5.11%
Pharma-5.34%
Medical Equipment-6.03%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 56.0x.
    • Analysts are expecting annual earnings growth of 17.0%, which is higher than its past year's earnings growth of 5.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 25% over the next 5 years.
  • However this is lower than its past earnings growth rate of 55% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 15% 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
TMO Thermo Fisher ScientificUS$534.073.4%
+US$6.5b		27.8%PE29x
CI Cigna GroupUS$303.355.8%
+US$4.4b		0.3%PE12.8x
DHR DanaherUS$199.052.5%
+US$3.4b		3.2%PE38.3x
CVS CVS HealthUS$106.181.8%
+US$2.4b		66.1%PE46.2x
ELV Elevance HealthUS$426.791.9%
+US$1.7b		26.9%PE17.7x

Latest News

JNJ
US$253.85
Johnson & Johnson
7D
-5.0%
1Y
63.6%
Seeking Alpha • 4h

Johnson & Johnson Q2: Solid (If Not Spectacular) Performance Satisfies Wall Street

Summary Johnson & Johnson delivered strong Q2 2026 results, with 6.6% annual revenue growth and robust performance across Pharma and MedTech divisions. JNJ maintains mid-to-high single digit revenue growth, a portfolio of 15+ "blockbuster" drugs, and a solid pipeline, supporting its blue-chip status. I am downgrading JNJ from Strong Buy to Buy due to valuation normalization and tempered forward share price expectations, despite continued operational strength. JNJ offers stable dividends (>2% yield), high profitability (27.5% operating margin in 2025), and remains a reliable 'buy and hold' within Big Pharma. Read the full article on Seeking Alpha
HCA
US$363.60
HCA Healthcare
7D
-14.1%
1Y
-2.2%
Seeking Alpha • 9h

HCA Healthcare's Warning Prices In All The Bad News (Upgrade)

Summary HCA Healthcare is upgraded to "Buy" after recent underperformance, with shares now reflecting payer mix and policy headwinds. HCA's Q2 results beat expectations due to a $400 million one-time Medicaid payment, masking underlying margin compression from a worsening payer mix. Guidance was cut, with 2026 EPS now seen at $29–$30 (excluding windfall: ~$28), and free cash flow run-rate at ~$6 billion, reflecting persistent policy pressures. At 13x earnings and a 7.5% free cash flow yield, HCA appears de-risked, with fair value estimated at $400 as policy headwinds are now priced in. Read the full article on Seeking Alpha
DHR
US$199.05
Danaher
7D
2.5%
1Y
3.2%
ABT
US$88.96
Abbott Laboratories
7D
-7.2%
1Y
-32.3%
VRTX
US$476.31
Vertex Pharmaceuticals
7D
-8.8%
1Y
2.6%
LLY
US$1,152.54
Eli Lilly
7D
-6.7%
1Y
49.3%
HUM
US$406.77
Humana
7D
3.1%
1Y
83.3%
ELV
US$426.79
Elevance Health
7D
1.9%
1Y
26.9%
Narrative Update • Jul 14

ELV: Stable Policy Backdrop And Medicaid Uncertainty Will Shape Margin Recovery

Analysts have increased the Elevance Health fair value estimate from $418.67 to $436.52, as higher price targets across the Street cite constructive earnings expectations for healthcare services, steadier trends in Medicare Advantage and exchanges, and a more stable policy backdrop, partially offset by ongoing uncertainty around Medicaid performance. Analyst Commentary Recent research on Elevance Health points to a generally constructive tone, with many bullish analysts adjusting price targets higher while still flagging areas where execution and policy risk could affect valuation and growth.
CNC
US$68.72
Centene
7D
3.9%
1Y
129.1%
Narrative Update • Jul 14

CNC: Medicaid Margin Recovery And Cost Actions Will Shape Balanced Earnings Outlook

Centene's analyst price target has been revised higher, with fair value moving from about $61.83 to $63.78 as analysts highlight more supportive exchange trends, early signs of Medicaid margin recovery, and sector wide adjustments that reflect a steadier policy backdrop. Analyst Commentary Recent research on Centene clusters around a more constructive view on earnings power, supported by exchange trends, Medicare Advantage performance, and early signs of Medicaid margin recovery, while still flagging several execution and policy risks that could affect valuation.
CVS
US$106.18
CVS Health
7D
1.8%
1Y
66.1%
BBIO
US$84.09
BridgeBio Pharma
7D
7.9%
1Y
79.0%
Seeking Alpha • Jul 12

BridgeBio: "Strong Buy" Attruby Differentiation And Several NDA Submissions In Play

Summary BridgeBio Pharma (BBIO) remains a "Strong Buy," driven by regulatory approvals, robust pipeline progress, and significant commercial momentum for Attruby in ATTR-CM. Company has achieved U.S. and international approvals for acoramidis, with Q1 2026 U.S. net product revenue reaching $180.6 million, and is pursuing further pipeline expansion. Positive phase 3 PROPEL 3 data for oral infigratinib in achondroplasia supports an NDA submission in Q3 2026, targeting a $2.9B global market. Recent $1B preferred equity raise secures BBIO's cash runway for at least 12 months, supporting ongoing NDA submissions and commercialization efforts. Read the full article on Seeking Alpha
ISRG
US$379.50
Intuitive Surgical
7D
-11.2%
1Y
-25.9%
ABBV
US$244.78
AbbVie
7D
-3.9%
1Y
31.3%
MRK
US$120.78
Merck
7D
-6.3%
1Y
48.2%
TMO
US$534.07
Thermo Fisher Scientific
7D
3.4%
1Y
27.8%
Narrative Update • Jul 09

TMO: AI Tools And Biopharma Collaborations Will Drive Future Performance

Thermo Fisher Scientific's analyst price target has been trimmed slightly, with the fair value estimate moving from $611.56 to about $590.77 as analysts factor in a modestly higher discount rate and slightly softer long term revenue growth and margin assumptions, alongside a mix of cautious sector views and continued confidence in the company's role across life science tools and diagnostics. Analyst Commentary Recent research on Thermo Fisher Scientific shows a mix of optimism and caution, with several firms updating price targets, ratings, and sector views as they reassess growth drivers, capital spending trends, and long term organic growth expectations.
CI
US$303.35
Cigna Group
7D
5.8%
1Y
0.3%