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U.S. Healthcare Sector Analysis

UpdatedJan 08, 2026
DataAggregated Company Financials
Companies1396
  • 7D3.6%
  • 3M11.4%
  • 1Y12.9%
  • YTD3.2%

Over the last 7 days, the Healthcare industry has risen 3.6%, driven by gains from Eli Lilly of 3.1%. In the last 12 months, the industry was up 13%. Looking forward, earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 08 Jan 2026US$6.6tUS$3.2tUS$135.9b26.6x48.6x2.1x
Sat, 06 Dec 2025US$6.4tUS$3.2tUS$133.6b25.9x47.9x2x
Mon, 03 Nov 2025US$6.0tUS$3.1tUS$134.4b26.1x44.4x1.9x
Wed, 01 Oct 2025US$5.7tUS$3.1tUS$137.6b24x41.2x1.8x
Fri, 29 Aug 2025US$5.7tUS$3.1tUS$137.2b23.2x41.5x1.8x
Sun, 27 Jul 2025US$5.6tUS$3.1tUS$128.1b24.6x43.8x1.8x
Tue, 24 Jun 2025US$5.4tUS$3.0tUS$127.5b23.8x42.4x1.8x
Thu, 22 May 2025US$5.5tUS$3.0tUS$126.3b22.9x43.4x1.8x
Sat, 19 Apr 2025US$5.3tUS$2.6tUS$97.6b24.8x54.1x2x
Mon, 17 Mar 2025US$5.7tUS$2.6tUS$74.8b26.6x75.6x2.1x
Wed, 12 Feb 2025US$5.9tUS$2.6tUS$84.7b26x69.3x2.2x
Fri, 10 Jan 2025US$5.9tUS$2.9tUS$79.4b27.3x74x2x
Sun, 08 Dec 2024US$6.1tUS$2.9tUS$77.6b28.7x78.2x2.1x
Tue, 05 Nov 2024US$6.2tUS$2.9tUS$71.2b28.1x86.5x2.1x
Thu, 03 Oct 2024US$6.2tUS$2.8tUS$60.0b30.1x104x2.2x
Sat, 31 Aug 2024US$6.3tUS$2.8tUS$54.1b32.3x116.2x2.2x
Mon, 29 Jul 2024US$6.4tUS$2.8tUS$60.8b31.7x105x2.2x
Wed, 26 Jun 2024US$6.2tUS$2.8tUS$62.4b30.3x99.7x2.2x
Fri, 24 May 2024US$6.2tUS$2.8tUS$64.3b30.2x97x2.2x
Sun, 21 Apr 2024US$5.9tUS$2.8tUS$84.6b30.2x70.1x2.1x
Tue, 19 Mar 2024US$6.2tUS$2.8tUS$84.7b31.5x73.4x2.2x
Thu, 15 Feb 2024US$6.1tUS$2.8tUS$82.0b31.1x74.6x2.2x
Sat, 13 Jan 2024US$6.4tUS$2.8tUS$90.8b32.2x70.2x2.3x
Mon, 11 Dec 2023US$6.0tUS$2.8tUS$91.4b29.4x65.2x2.1x
Wed, 08 Nov 2023US$5.8tUS$2.8tUS$86.9b25.8x66.6x2.1x
Fri, 06 Oct 2023US$5.8tUS$2.8tUS$98.3b26.7x59.1x2.1x
Sun, 03 Sep 2023US$6.1tUS$2.8tUS$98.7b27.4x61.9x2.2x
Tue, 01 Aug 2023US$6.1tUS$2.7tUS$115.7b28x52.5x2.2x
Thu, 29 Jun 2023US$6.0tUS$2.7tUS$109.9b26.3x54.2x2.2x
Sat, 27 May 2023US$5.8tUS$2.7tUS$110.5b24.4x52.6x2.1x
Mon, 24 Apr 2023US$6.0tUS$2.5tUS$117.6b24.9x51x2.4x
Wed, 22 Mar 2023US$5.7tUS$2.5tUS$124.2b23.4x45.9x2.3x
Fri, 17 Feb 2023US$5.9tUS$2.5tUS$130.3b24.5x45.1x2.4x
Sun, 15 Jan 2023US$6.1tUS$2.5tUS$135.9b22.9x44.6x2.5x
Price to Earnings Ratio

44.6x


Total Market Cap: US$6.1tTotal Earnings: US$135.9bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.1x202420252026
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 48.6x which is lower than its 3-year average PE of 65.1x.
  • 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 9.1% 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 Market1.52%
Healthcare3.59%
Life Sciences6.41%
Healthtech6.24%
Biotech4.11%
Medical Equipment3.44%
Healthcare Services2.99%
Pharma2.74%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 59.9x.
    • Analysts are expecting annual earnings growth of 17.5%, which is higher than its past year's earnings decline of 0.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 23% 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 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
LLY Eli LillyUS$1.11k3.1%
+US$29.9b		40.8%PE53.9x
RGC Regencell Bioscience HoldingsUS$52.88151.8%
+US$15.8b		39,147.1%PB5380.1x
TMO Thermo Fisher ScientificUS$617.156.5%
+US$14.2b		13.3%PE35.3x
UNH UnitedHealth GroupUS$341.703.5%
+US$10.5b		-34.9%PE17.6x
ISRG Intuitive SurgicalUS$592.274.6%
+US$9.2b		8.9%PE76.4x

Latest News

ABBV
US$233.42
AbbVie
7D
2.2%
1Y
30.8%

AbbVie's (NYSE:ABBV) Dividend Will Be Increased To $1.73

Jan 08
AbbVie's (NYSE:ABBV) Dividend Will Be Increased To $1.73
LLY
US$1,108.09
Eli Lilly
7D
3.1%
1Y
40.8%
VRTX
US$484.15
Vertex Pharmaceuticals
7D
6.8%
1Y
17.5%
MRK
US$108.60
Merck
7D
3.2%
1Y
8.8%
TMO
US$617.15
Thermo Fisher Scientific
7D
6.5%
1Y
13.3%

TMO: Life Science Scale And 2026 Tools Demand Will Support Steady Performance

Analysts have nudged their fair value estimate for Thermo Fisher Scientific higher from about $626 to roughly $642, citing a series of recent price target increases that reflect updated models after Q3 results, expectations for healthier end markets and tools demand into 2026, and the company's scale in life science tools and lab supplies. Analyst Commentary Recent Street research on Thermo Fisher Scientific clusters around a consistent, more constructive view on the company, with several firms lifting their fair value estimates following the latest Q3 update.
ZBIO
US$16.51
Zenas BioPharma
7D
-54.5%
1Y
77.9%
RYTM
US$101.59
Rhythm Pharmaceuticals
7D
-5.1%
1Y
75.5%

RYTM: March Obesity Decision And Prader Willi Data Will Shape Upside

Analysts have nudged their fair value estimate for Rhythm Pharmaceuticals higher to about US$139 per share from roughly US$138, reflecting recent price target increases from several firms, along with views that upcoming label expansion and clinical readouts are already largely reflected in the current share price. Analyst Commentary Recent Street research on Rhythm Pharmaceuticals shows a mix of enthusiasm around the commercial trajectory and upcoming label events, alongside some caution on how much of that story is already reflected in the share price.
RGC
US$52.88
Regencell Bioscience Holdings
7D
151.8%
1Y
39,147.1%
UHS
US$208.39
Universal Health Services
7D
-4.4%
1Y
9.5%

UHS: Strong Q3 Execution And Buybacks Will Test Policy Risk Concerns

Analysts have lifted their price target framework for Universal Health Services by about US$2 to reflect modestly higher long term fair value, with recent research citing stronger Q3 EBITDA, updated 2027 estimates, solid demand trends, and an undemanding P/E multiple, even as some highlight ongoing policy and admissions volume risks. Analyst Commentary Bullish Takeaways Bullish analysts point to Q3 results that came in above guidance and consensus, which they see as a sign of improving execution and a foundation for their higher long term fair value views.
UNH
US$341.70
UnitedHealth Group
7D
3.5%
1Y
-34.9%

UNH: Medicare Advantage Margin Normalization Will Drive Multi-Year Earnings Recovery Ahead

Analysts have nudged their fair value estimate for UnitedHealth Group slightly higher, with the price target rising by about $4 to around $392 per share as they factor in a stronger multi year earnings recovery driven by disciplined repricing, Medicare Advantage and Medicaid margin normalization, and improving visibility into Optum restructuring benefits. Analyst Commentary Recent Street research on UnitedHealth Group reflects a generally constructive stance, with multiple bullish analysts lifting price targets and emphasizing the durability of the company’s earnings recovery as Medicare Advantage and Medicaid margins normalize and Optum restructuring gains traction.
MDGL
US$561.13
Madrigal Pharmaceuticals
7D
-3.6%
1Y
68.3%

MDGL: Elevated Expectations For Cirrhosis Opportunity Will Face Heightened Competitive Pressures

Madrigal Pharmaceuticals' analyst price target has risen sharply from approximately $312 to $502 per share, as analysts factor in stronger long term profitability and higher penetration assumptions for Rezdiffra across F2-F3 and F4c MASH populations, despite moderating top line growth expectations and a modestly higher discount rate. Analyst Commentary Recent Street research reflects a broadly constructive outlook on Madrigal Pharmaceuticals, with multiple firms lifting price targets in response to stronger than expected Rezdiffra uptake and expanding commercial visibility in both F2 F3 and compensated F4c MASH populations.
AXSM
US$170.69
Axsome Therapeutics
7D
-6.5%
1Y
106.7%
ISRG
US$592.27
Intuitive Surgical
7D
4.6%
1Y
8.9%

ISRG: Elevated Expectations Will Expose Premium Pricing To Utilization And Margin Disappointments

Analysts have raised their price targets on Intuitive Surgical by roughly $50-$60 per share, citing stronger than expected Q3 revenue and EPS growth, improving profitability despite tariff and mix headwinds, and encouraging trends in system utilization that support a higher fair value of about $468 per share, even as valuation remains a key consideration. Analyst Commentary Recent Street research on Intuitive Surgical reflects a mix of optimism on the company’s operational momentum and caution around valuation and risk-reward.
BBIO
US$74.27
BridgeBio Pharma
7D
-2.9%
1Y
152.2%

BBIO: Late-Stage Pipeline Progress Will Drive Bullish Repricing Ahead

BridgeBio Pharma's analyst price target has been raised meaningfully, with fair value estimates climbing from approximately $88 to $110 as analysts factor in stronger visibility on late stage programs like Attruby, infigratinib, encaleret, and BBP-418. These programs collectively de risk the pipeline and support higher long term profitability.
MDLN
US$40.43
Medline
7D
-3.7%
1Y
n/a
CNTA
US$22.69
Centessa Pharmaceuticals
7D
-9.3%
1Y
40.9%