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U.S. Healthcare Sector Analysis

UpdatedMay 22, 2025
DataAggregated Company Financials
Companies1400
  • 7D1.8%
  • 3M-12.0%
  • 1Y-12.6%
  • YTD-7.1%

Over the last 7 days, the Healthcare industry has risen 1.8%, driven by gains from Johnson & Johnson of 4.7%. In contrast, the industry has lost 13% in the last 12 months. 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
Fri, 23 May 2025US$5.5tUS$3.0tUS$126.3b22.9x43.4x1.8x
Sun, 20 Apr 2025US$5.3tUS$2.6tUS$97.6b24.8x54.1x2x
Tue, 18 Mar 2025US$5.7tUS$2.6tUS$74.8b26.7x75.6x2.1x
Thu, 13 Feb 2025US$5.8tUS$2.6tUS$84.4b26.1x69.1x2.2x
Sat, 11 Jan 2025US$5.9tUS$2.9tUS$78.8b27.6x74.6x2x
Mon, 09 Dec 2024US$6.1tUS$2.9tUS$77.6b28.7x78.2x2.1x
Wed, 06 Nov 2024US$6.1tUS$2.9tUS$74.9b28.8x81.9x2.1x
Fri, 04 Oct 2024US$6.2tUS$2.8tUS$60.0b30.1x103.3x2.2x
Sun, 01 Sep 2024US$6.3tUS$2.8tUS$60.3b32.2x105x2.2x
Tue, 30 Jul 2024US$6.4tUS$2.8tUS$60.8b32.1x105x2.2x
Thu, 27 Jun 2024US$6.2tUS$2.8tUS$62.4b29.9x99.4x2.2x
Sat, 25 May 2024US$6.2tUS$2.8tUS$64.1b30.9x96.1x2.2x
Mon, 22 Apr 2024US$5.9tUS$2.8tUS$84.6b30.2x70x2.1x
Wed, 20 Mar 2024US$6.3tUS$2.8tUS$84.2b31.8x74.4x2.3x
Fri, 16 Feb 2024US$6.2tUS$2.8tUS$82.3b30.8x75.2x2.2x
Sun, 14 Jan 2024US$6.4tUS$2.8tUS$90.8b32.2x70.2x2.3x
Tue, 12 Dec 2023US$6.0tUS$2.8tUS$91.3b30.1x65.5x2.1x
Thu, 09 Nov 2023US$5.8tUS$2.8tUS$88.8b25.8x65.1x2.1x
Sat, 07 Oct 2023US$5.9tUS$2.8tUS$98.3b26.7x59.7x2.1x
Mon, 04 Sep 2023US$6.1tUS$2.8tUS$98.7b27.4x61.9x2.2x
Wed, 02 Aug 2023US$6.0tUS$2.7tUS$98.2b28.6x61.5x2.2x
Fri, 30 Jun 2023US$6.0tUS$2.7tUS$109.9b26.5x54.5x2.2x
Sun, 28 May 2023US$5.8tUS$2.7tUS$110.5b24.4x52.6x2.1x
Tue, 25 Apr 2023US$6.0tUS$2.5tUS$117.7b24.9x51.1x2.4x
Thu, 23 Mar 2023US$5.6tUS$2.5tUS$124.3b23.1x45.2x2.3x
Sat, 18 Feb 2023US$5.9tUS$2.5tUS$131.2b24.7x45.1x2.4x
Mon, 16 Jan 2023US$6.1tUS$2.5tUS$135.9b22.9x44.6x2.5x
Wed, 14 Dec 2022US$6.2tUS$2.4tUS$133.7b23.5x46.1x2.5x
Fri, 11 Nov 2022US$6.0tUS$2.4tUS$136.4b23.7x43.7x2.5x
Sun, 09 Oct 2022US$5.5tUS$2.4tUS$155.7b21.4x35.6x2.3x
Tue, 06 Sep 2022US$5.7tUS$2.4tUS$156.5b22.2x36.2x2.4x
Thu, 04 Aug 2022US$6.0tUS$2.6tUS$164.2b24.6x36.8x2.3x
Sat, 02 Jul 2022US$5.9tUS$2.6tUS$165.5b23.8x35.4x2.3x
Mon, 30 May 2022US$6.0tUS$2.6tUS$165.6b25.5x36.2x2.3x
Price to Earnings Ratio

36.2x


Total Market Cap: US$6.0tTotal Earnings: US$165.6bTotal Revenue: US$2.6tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 64x202320242025
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 43.4x which is lower than its 3-year average PE of 64.0x.
  • The 3-year average PS ratio of 2.2x is higher than the industry's current PS ratio of 1.8x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have declined 8.6% per year over the last three years.
  • Meanwhile revenues for these companies have grown 5.4% 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, which has decreased profits.

Industry Trends

Which industries have driven the changes within the U.S. Healthcare sector?

US Market-1.15%
Healthcare1.78%
Biotech5.12%
Pharma3.21%
Healthcare Services1.49%
Medical Equipment-0.26%
Life Sciences-1.54%
Healthtech-4.65%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 60.7x.
    • Analysts are expecting annual earnings growth of 16.6%, which is higher than its past year's earnings decline of 1.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 24% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Medical Equipment industry is expected to see its earnings grow by 12% 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
JNJ Johnson & JohnsonUS$153.184.7%
+US$16.4b		-0.2%PE16.9x
GILD Gilead SciencesUS$107.729.5%
+US$11.6b		58.9%PE22.5x
MRK MerckUS$76.984.8%
+US$8.8b		-41.3%PE11.1x
LLY Eli LillyUS$724.951.3%
+US$8.4b		-9.7%PE58.6x
ABT Abbott LaboratoriesUS$133.053.5%
+US$7.8b		26.9%PE17.2x
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