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U.S. Healthcare Sector Analysis

UpdatedAug 13, 2026
DataAggregated Company Financials
Companies1384
  • 7D2.9%
  • 3M14.9%
  • 1Y28.3%
  • YTD9.6%

The Healthcare industry is up 2.9% in the last week, with Eli Lilly up 4.3%. In the last 12 months, the industry was up 28%. Earnings are forecast to grow by 20% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 13 Aug 2026US$7.1tUS$3.4tUS$116.1b26x61.3x2.1x
Sat, 11 Jul 2026US$7.0tUS$3.3tUS$122.0b25x57.2x2.1x
Mon, 08 Jun 2026US$6.4tUS$3.3tUS$122.5b23.6x52.6x1.9x
Wed, 06 May 2026US$6.2tUS$3.3tUS$117.5b23.8x52.6x1.9x
Fri, 03 Apr 2026US$6.2tUS$3.3tUS$128.3b22.2x48.5x1.9x
Sun, 01 Mar 2026US$6.7tUS$3.3tUS$127.5b25.5x52.2x2x
Tue, 27 Jan 2026US$6.6tUS$3.2tUS$130.6b29.1x50.6x2.1x
Thu, 25 Dec 2025US$6.6tUS$3.2tUS$135.2b26.4x48.5x2.1x
Sat, 22 Nov 2025US$6.2tUS$3.2tUS$133.4b25.8x46.7x2x
Mon, 20 Oct 2025US$6.0tUS$3.1tUS$140.4b24.8x42.5x1.9x
Wed, 17 Sep 2025US$5.7tUS$3.1tUS$137.5b23.8x41.2x1.8x
Fri, 15 Aug 2025US$5.6tUS$3.1tUS$136.9b23.4x40.5x1.8x
Sun, 13 Jul 2025US$5.5tUS$3.0tUS$127.9b24x43.3x1.8x
Tue, 10 Jun 2025US$5.5tUS$3.0tUS$127.2b23.8x43.2x1.8x
Thu, 08 May 2025US$5.4tUS$3.0tUS$127.1b25x42.7x1.8x
Sat, 05 Apr 2025US$5.5tUS$2.6tUS$82.1b24.7x67x2.1x
Mon, 03 Mar 2025US$5.9tUS$2.6tUS$79.3b27.5x74x2.2x
Wed, 29 Jan 2025US$6.2tUS$2.9tUS$85.5b27.9x72x2.1x
Fri, 27 Dec 2024US$5.9tUS$2.9tUS$78.3b27.6x74.8x2x
Sun, 24 Nov 2024US$6.0tUS$2.9tUS$77.3b28.2x78.1x2.1x
Tue, 22 Oct 2024US$6.2tUS$2.8tUS$58.7b32.1x106.4x2.2x
Thu, 19 Sep 2024US$6.3tUS$2.8tUS$60.2b31.1x104.5x2.2x
Sat, 17 Aug 2024US$6.1tUS$2.8tUS$56.1b32.8x109.5x2.2x
Mon, 15 Jul 2024US$6.3tUS$2.8tUS$62.2b31.2x101.7x2.2x
Wed, 12 Jun 2024US$6.2tUS$2.8tUS$63.6b30.2x97.9x2.2x
Fri, 10 May 2024US$6.1tUS$2.8tUS$62.9b30.6x96.7x2.2x
Sun, 07 Apr 2024US$6.2tUS$2.8tUS$84.1b32.4x73.2x2.2x
Tue, 05 Mar 2024US$6.3tUS$2.8tUS$85.0b31x74x2.3x
Thu, 01 Feb 2024US$6.4tUS$2.8tUS$80.6b31.6x79.2x2.3x
Sat, 30 Dec 2023US$6.2tUS$2.8tUS$91.5b32.6x68.2x2.2x
Mon, 27 Nov 2023US$5.9tUS$2.8tUS$91.4b28.6x64.4x2.1x
Wed, 25 Oct 2023US$5.7tUS$2.8tUS$99.6b24.8x57.3x2x
Fri, 22 Sep 2023US$5.9tUS$2.8tUS$98.6b27.4x60.1x2.1x
Sun, 20 Aug 2023US$6.1tUS$2.8tUS$99.2b27.9x61.4x2.2x
Price to Earnings Ratio

61.4x


Total Market Cap: US$6.1tTotal Earnings: US$99.2bTotal 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 61.3x 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 5.4% 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 Market1.02%
Healthcare2.94%
Healthtech11.04%
Biotech4.46%
Medical Equipment4.09%
Life Sciences3.95%
Pharma2.54%
Healthcare Services-0.43%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 55.7x.
    • Analysts are expecting annual earnings growth of 18.7%, which is higher than its past year's earnings growth of 5.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 27% over the next 5 years.
  • However this is lower than its past earnings growth rate of 68% per year.
  • In contrast, the Medical Equipment 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
LLY Eli LillyUS$1.22k4.3%
+US$44.9b		84.8%PE40.7x
MRK MerckUS$132.923.6%
+US$11.0b		60.7%PE103.4x
VRTX Vertex PharmaceuticalsUS$525.738.4%
+US$10.4b		32.8%PE30.2x
TMO Thermo Fisher ScientificUS$603.014.4%
+US$9.3b		24.4%PE32x
ISRG Intuitive SurgicalUS$401.276.9%
+US$9.2b		-16.8%PE45.2x

Latest News

CAH
US$234.16
Cardinal Health
7D
-2.1%
1Y
58.1%
Seeking Alpha • 51m

Cardinal Health: Q4 Presents Positive Signal For The Company's Long-Term Growth

Summary Cardinal Health delivered FY2026 non-GAAP EPS of $11.26, exceeding initial guidance and achieving over 30% growth, despite a slight revenue miss. CAH's profit mix is shifting toward higher-margin specialty and 'Other' businesses, making traditional distributor revenue metrics less relevant to earnings power. Management guides 13–15% EPS growth for FY2027, with my estimate at $13.10, implying 7–14% upside to a $258–$275 target range. I maintain a Buy rating, closely monitoring tuck-in acquisition pace and GMPD segment performance as key drivers for outperformance. Read the full article on Seeking Alpha
TMO
US$603.01
Thermo Fisher Scientific
7D
4.4%
1Y
24.4%
UNH
US$405.59
UnitedHealth Group
7D
-1.7%
1Y
49.2%
BLLN
US$97.45
BillionToOne
7D
-35.0%
1Y
n/a
ISRG
US$401.27
Intuitive Surgical
7D
6.9%
1Y
-16.8%
LLY
US$1,220.28
Eli Lilly
7D
4.3%
1Y
84.8%
Seeking Alpha • 22h

I Underestimated Eli Lilly: Retatrutide Changes The Risk/Reward (Rating Upgrade)

Summary I underestimated Eli Lilly and Company. LLY's Retatrutide showed promising efficacy in TRIUMPH-2/TRIUMPH-3 trials, and if approved by the FDA, I believe it could become the "gold standard" in the obesity market. Meanwhile, Jaypirca generated $192 million in sales for Eli Lilly in Q2, up 56.4% year-on-year, despite competitive pressure from AstraZeneca's Calquence and BeOne Medicines' Brukinsa. Also, Eli Lilly raised its full-year 2026 revenue guidance from $82-$85 billion to $85-$87 billion. In this article, I explain why I'm upgrading my LLY stock rating from Hold to Buy. Read the full article on Seeking Alpha
SION
US$6.25
Sionna Therapeutics
7D
-86.8%
1Y
-70.1%
Seeking Alpha • Aug 12

Sionna's SION-719 Failure Changes Everything (Rating Downgrade)

Summary Sionna Therapeutics is downgraded to Hold after SION-719’s Phase 2a failure, shifting focus to the riskier SION-451 program. SION-719’s lack of efficacy as a Trikafta add-on raises concerns about the NBD1 stabilisation approach’s clinical translation and increases execution risk. SION maintains a strong cash position with $268 million, trading at negative enterprise value, but faces a capital preservation imperative and uncertain pipeline value. Investor attention now centers on whether SION-451 + 2222 can demonstrate efficacy, with management pausing Phase II plans pending a full post-mortem on 719’s failure. Read the full article on Seeking Alpha
ELAN
US$22.13
Elanco Animal Health
7D
-15.6%
1Y
24.3%
Seeking Alpha • Aug 12

Elanco: Innovation Is Turning A Leveraged Portfolio Into A Share-Taking Platform

Summary Elanco Animal Health is transitioning from a leveraged consolidator to an innovative competitor, with new products driving EBITDA growth and market share gains. ELAN's innovation portfolio, including Zenrelia, Credelio Quattro, and Befrena, is capturing share in dermatology and parasiticide markets, challenging Zoetis' key franchises. Margin expansion and deleveraging are underway, supported by the Ascend program and strong cash flow; net leverage is targeted below 3.0x by 2027. Valuation remains discounted versus peers on sales and book multiples, despite innovation-driven growth and a more balanced, diversified business model. Read the full article on Seeking Alpha
EXEL
US$50.38
Exelixis
7D
-11.1%
1Y
30.9%
MRK
US$132.92
Merck
7D
3.6%
1Y
60.7%
Narrative Update • Aug 12

MRK: Pipeline Execution And Patent Cliff Response Will Shape Future Earnings Balance

Merck's updated analyst price target framework now points to a fair value of $136.85, up from $132.78. Analysts link this shift to a series of higher Street targets that emphasize the company's dividend profile, pipeline progress, and M&A optionality.
ABT
US$110.91
Abbott Laboratories
7D
4.9%
1Y
-14.3%
CVS
US$94.72
CVS Health
7D
-4.4%
1Y
43.7%
Seeking Alpha • Aug 10

CVS Health: I Wanted A Beat And Raise, I Got It, And I'm Still At 'Hold'

Summary CVS Health Corporation's strong Q2 results delivered revenue and earnings beats while management raised operating cash flow guidance to $11.5 billion. Aetna turnaround and improved medical benefit ratios boosted first half cash generation, helping drive recent stock gains. Management anticipates higher second half medical costs alongside 2027 headwinds from 340B pricing and pharmacy drug mix shifts. Strengthening cash flow supports deleveraging and dividend safety, but the recent CVS stock rally keeps the thesis at Hold. Read the full article on Seeking Alpha
JNJ
US$260.86
Johnson & Johnson
7D
1.3%
1Y
49.6%
INSM
US$132.28
Insmed
7D
33.6%
1Y
7.7%
Narrative Update • Aug 08

INSM: Respiratory Franchise Execution Will Outweigh Index Removal And Launch Concerns

Insmed's updated analyst price target has moved from $141.28 to $161.00. This reflects analysts' focus on the Brinsupri launch trajectory, revised revenue and margin assumptions, and a higher future P/E multiple anchored in recent research that clusters price targets mostly in the $169 to $218 range.
VTRS
US$16.10
Viatris
7D
-8.8%
1Y
54.7%
Narrative Update • Aug 08

VTRS: Product Approvals And 2026 Outlook Will Drive Multiple Re Rating

Analysts raised their fair value estimate for Viatris from $17.94 to $18.50, reflecting updated assumptions that include a modestly higher discount rate, slightly softer revenue growth, stronger profit margin expectations, and a lower future P/E multiple following the recent $22 price target move from Barclays, which cited strong Q1 results and a supportive product approval outlook. Analyst Commentary Recent research on Viatris centers on how the stock might reflect the company’s execution on its product pipeline and revenue trajectory over the next few years.
VRTX
US$525.73
Vertex Pharmaceuticals
7D
8.4%
1Y
32.8%
Narrative Update • Aug 04

VRTX: Endocrinology Expansion And Nephrology Pipeline Will Drive Next Phase

Analysts have nudged their price targets on Vertex Pharmaceuticals higher, generally into a $550 to $605 range, citing raised FY26 revenue guidance, steady cystic fibrosis performance, and a growing set of potential catalysts across hematology, nephrology, pain, and the newly added endocrinology portfolio. Analyst Commentary Street research on Vertex Pharmaceuticals points to a generally constructive tone, with multiple firms lifting price targets and focusing on execution around the cystic fibrosis franchise, the expanding pipeline and the new endocrinology pillar from the Crinetics deal.