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U.S. Healthcare Sector Analysis

UpdatedMay 04, 2026
DataAggregated Company Financials
Companies1400
  • 7D0.8%
  • 3M-5.0%
  • 1Y8.4%
  • YTD-5.5%

Last week, the Healthcare industry hasn't moved much but Eli Lilly is up 11% in that time. As for the the longer term, the industry is up 8.4% over the past 12 months. Earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 05 May 2026US$6.2tUS$3.3tUS$118.0b23.6x52.3x1.9x
Thu, 02 Apr 2026US$6.2tUS$3.3tUS$128.2b22.7x48x1.9x
Sat, 28 Feb 2026US$6.6tUS$3.3tUS$126.9b25.6x51.9x2x
Mon, 26 Jan 2026US$6.6tUS$3.2tUS$130.6b28.5x50.6x2.1x
Wed, 24 Dec 2025US$6.5tUS$3.2tUS$135.2b26.3x48.4x2x
Fri, 21 Nov 2025US$6.3tUS$3.2tUS$133.1b25x47.1x2x
Sun, 19 Oct 2025US$6.0tUS$3.1tUS$140.4b24.8x42.5x1.9x
Tue, 16 Sep 2025US$5.7tUS$3.1tUS$137.5b23.6x41.7x1.9x
Thu, 14 Aug 2025US$5.4tUS$3.1tUS$140.7b24.1x38.7x1.8x
Sat, 12 Jul 2025US$5.6tUS$3.0tUS$127.9b24.4x43.5x1.8x
Mon, 09 Jun 2025US$5.5tUS$3.0tUS$127.2b24x43.2x1.8x
Wed, 07 May 2025US$5.5tUS$2.7tUS$125.5b24.5x44.1x2x
Fri, 04 Apr 2025US$5.6tUS$2.6tUS$82.0b25.6x68.2x2.1x
Sun, 02 Mar 2025US$5.9tUS$2.6tUS$79.3b27.5x74x2.2x
Tue, 28 Jan 2025US$6.1tUS$2.9tUS$85.5b28.4x70.8x2.1x
Thu, 26 Dec 2024US$5.9tUS$2.9tUS$78.3b26.9x74.8x2x
Sat, 23 Nov 2024US$6.0tUS$2.9tUS$77.3b28.3x77.9x2.1x
Mon, 21 Oct 2024US$6.2tUS$2.8tUS$58.8b32.2x106.2x2.2x
Wed, 18 Sep 2024US$6.3tUS$2.8tUS$60.1b31.2x105.5x2.2x
Fri, 16 Aug 2024US$6.1tUS$2.8tUS$55.7b31.3x109.4x2.2x
Sun, 14 Jul 2024US$6.3tUS$2.8tUS$62.2b31.2x101.7x2.2x
Tue, 11 Jun 2024US$6.2tUS$2.8tUS$63.6b30x97.9x2.2x
Thu, 09 May 2024US$6.1tUS$2.8tUS$65.4b30.7x93.4x2.2x
Sat, 06 Apr 2024US$6.1tUS$2.8tUS$83.9b32.4x72.7x2.2x
Mon, 04 Mar 2024US$6.3tUS$2.8tUS$85.0b31.2x74.2x2.3x
Wed, 31 Jan 2024US$6.4tUS$2.8tUS$80.0b31.9x79.7x2.3x
Fri, 29 Dec 2023US$6.2tUS$2.8tUS$91.5b32.8x68x2.2x
Sun, 26 Nov 2023US$5.9tUS$2.8tUS$91.4b28.6x64.4x2.1x
Tue, 24 Oct 2023US$5.7tUS$2.8tUS$99.6b24.8x57.3x2x
Thu, 21 Sep 2023US$6.0tUS$2.8tUS$98.6b28.2x60.7x2.2x
Sat, 19 Aug 2023US$6.1tUS$2.8tUS$99.3b27.7x61.4x2.2x
Mon, 17 Jul 2023US$6.0tUS$2.7tUS$110.9b26.3x54x2.2x
Wed, 14 Jun 2023US$6.0tUS$2.7tUS$110.0b26x54.7x2.2x
Fri, 12 May 2023US$6.0tUS$2.7tUS$112.0b24.9x53.7x2.2x
Price to Earnings Ratio

53.7x


Total Market Cap: US$6.0tTotal Earnings: US$112.0bTotal 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 52.3x 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 remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 6.5% 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 Market0.91%
Healthcare0.77%
Pharma4.44%
Healthcare Services2.61%
Healthtech2.52%
Life Sciences-0.62%
Biotech-1.70%
Medical Equipment-4.11%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 55.1x.
    • Analysts are expecting annual earnings growth of 15.9%, which is higher than its past year's earnings growth of 13.2% 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 40% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 14% 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$967.9311.5%
+US$86.2b		17.8%PE34.1x
ABBV AbbVieUS$208.165.5%
+US$19.1b		6.2%PE102.4x
UNH UnitedHealth GroupUS$370.754.5%
+US$14.6b		-8.4%PE28x
MRK MerckUS$113.112.6%
+US$7.1b		36.5%PE31.3x
GILD Gilead SciencesUS$132.733.9%
+US$6.2b		29.1%PE19.4x

Latest News

BSX
US$56.85
Boston Scientific
7D
-5.2%
1Y
-45.5%
UNH
US$370.75
UnitedHealth Group
7D
4.5%
1Y
-8.4%
ABBV
US$208.16
AbbVie
7D
5.5%
1Y
6.2%
SYK
US$290.88
Stryker
7D
-11.6%
1Y
-23.7%
LLY
US$967.93
Eli Lilly
7D
11.5%
1Y
17.8%
ABT
US$87.54
Abbott Laboratories
7D
-5.7%
1Y
-34.0%
ISRG
US$452.35
Intuitive Surgical
7D
-4.0%
1Y
-14.9%
MRK
US$113.11
Merck
7D
2.6%
1Y
36.5%

MRK: Oncology Reorg And Deals For Targeted Therapies Will Support Higher P E Multiple

Analysts nudged the Merck price target higher by a few dollars per share, reflecting updated expectations for slightly lower revenue growth, a modestly higher profit margin, and a somewhat lower future P/E multiple, supported by recent research commentary on the pipeline and business development moves. Analyst Commentary Recent research has tilted positive around Merck, with several large firms adjusting their models and price targets to reflect updated views on the pipeline, partnered programs, and business development activity.
DHR
US$174.04
Danaher
7D
-3.6%
1Y
-11.8%

DHR: Masimo Cash Acquisition Will Support Premium Future Earnings Multiple

Danaher’s updated analyst price target moves lower by about $8 per share to roughly $250, as analysts factor in more conservative assumptions for growth, profitability and future P/E multiples following a recent series of mostly downward target revisions across the Street. Analyst Commentary Recent research on Danaher reflects a mixed but generally cautious tone, with several price target cuts offset by one modest increase and a change in rating context at another company linked to Danaher’s pending acquisition activity.
TEVA
US$35.35
Teva Pharmaceutical Industries
7D
13.1%
1Y
115.7%
AMGN
US$323.85
Amgen
7D
-4.8%
1Y
15.6%
GILD
US$132.73
Gilead Sciences
7D
3.9%
1Y
29.1%

GILD: Future Returns Will Hinge On Executing Oncology And ADC Acquisitions

Analysts have raised the Gilead Sciences fair value estimate by about $2 to $128.42 per share, supported by refreshed models that reflect updated revenue growth, profitability, and future P/E assumptions following a wave of higher Street price targets. Analyst Commentary Street research on Gilead has tilted constructive in recent weeks, with several firms lifting price targets and at least one new Buy rating added.
HCA
US$427.18
HCA Healthcare
7D
-4.2%
1Y
22.3%
CNC
US$53.56
Centene
7D
23.1%
1Y
-10.4%

CNC: Policy And Exchange Uncertainty Will Pressure Margins And Constrain Upside

Analysts have trimmed the fair value estimate for Centene to $43.47 from $44.18, reflecting updated views on revenue growth, margin potential, and a lower expected future P/E multiple, even as several recent price target revisions highlight ongoing debate around the stock. Analyst Commentary Recent Street research paints a mixed picture for Centene, with several firms adjusting price targets and ratings as they reassess the company after Q4 results, updated guidance, and regulatory developments.
MDT
US$78.30
Medtronic
7D
-5.6%
1Y
-6.2%
CVS
US$82.01
CVS Health
7D
4.7%
1Y
22.2%

CVS: Medicare Advantage Turnaround And FTC Settlement Will Support Future Earnings

CVS Health's analyst price targets have edged higher by a few dollars, as analysts factor in slightly stronger revenue and margin assumptions, a modestly lower discount rate, and a somewhat lower future P/E multiple in light of recent research that highlights Medicare Advantage exposure, potential earnings stability in pharmacy, and reduced regulatory uncertainty tied to a possible FTC settlement. Analyst Commentary Recent research on CVS Health reflects a mix of cautious optimism and ongoing concern, with analysts adjusting price targets by only a few dollars in either direction as they reassess earnings quality, regulatory risks, and Medicare Advantage exposure.