Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Healthcare Sector Analysis

UpdatedFeb 23, 2026
DataAggregated Company Financials
Companies1389
  • 7D0.2%
  • 3M0.1%
  • 1Y7.1%
  • YTD-0.2%

Over the last 7 days, the Healthcare industry has remained flat, although notably Intuitive Surgical gained 3.7%. The past year has been better, since the industry has gained 7.1% in that time. As for the next few years, earnings are expected to grow by 16% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 23 Feb 2026US$6.6tUS$3.3tUS$128.1b26.6x51.1x2x
Wed, 21 Jan 2026US$6.5tUS$3.2tUS$136.3b27.8x48x2x
Fri, 19 Dec 2025US$6.4tUS$3.2tUS$135.2b26.6x47.6x2x
Sun, 16 Nov 2025US$6.2tUS$3.2tUS$133.4b25.9x46.8x2x
Tue, 14 Oct 2025US$5.9tUS$3.1tUS$137.9b24.1x42.9x1.9x
Thu, 11 Sep 2025US$5.8tUS$3.1tUS$137.7b22.7x41.9x1.9x
Sat, 09 Aug 2025US$5.3tUS$3.1tUS$138.6b22.9x38.5x1.7x
Mon, 07 Jul 2025US$5.6tUS$3.0tUS$127.9b24.3x43.4x1.8x
Wed, 04 Jun 2025US$5.4tUS$3.0tUS$127.2b23.6x42.5x1.8x
Fri, 02 May 2025US$5.5tUS$2.7tUS$117.5b25.2x46.7x2.1x
Sun, 30 Mar 2025US$5.6tUS$2.6tUS$81.6b26.4x69.1x2.1x
Tue, 25 Feb 2025US$5.8tUS$2.6tUS$80.7b26.5x72.1x2.2x
Thu, 23 Jan 2025US$6.0tUS$2.9tUS$78.9b28.2x75.6x2x
Sat, 21 Dec 2024US$5.7tUS$2.9tUS$78.2b27.1x72.7x1.9x
Mon, 18 Nov 2024US$5.9tUS$2.9tUS$76.6b27.6x77.4x2x
Wed, 16 Oct 2024US$6.2tUS$2.8tUS$59.2b30x104.9x2.2x
Fri, 13 Sep 2024US$6.3tUS$2.8tUS$60.3b30.2x103.8x2.2x
Sun, 11 Aug 2024US$6.0tUS$2.8tUS$55.3b30.4x108.9x2.1x
Tue, 09 Jul 2024US$6.1tUS$2.8tUS$62.2b30.2x98.5x2.2x
Thu, 06 Jun 2024US$6.2tUS$2.8tUS$64.1b30.6x96x2.2x
Sat, 04 May 2024US$6.0tUS$2.8tUS$65.2b31.1x92.3x2.1x
Mon, 01 Apr 2024US$6.4tUS$2.8tUS$84.0b33.4x75.7x2.3x
Wed, 28 Feb 2024US$6.3tUS$2.8tUS$85.8b31x73.5x2.3x
Fri, 26 Jan 2024US$6.3tUS$2.8tUS$90.9b32x69.3x2.2x
Sun, 24 Dec 2023US$6.2tUS$2.8tUS$91.5b32.6x67.4x2.2x
Tue, 21 Nov 2023US$5.8tUS$2.8tUS$90.7b27.8x63.6x2x
Thu, 19 Oct 2023US$5.8tUS$2.8tUS$99.8b26x58.5x2.1x
Sat, 16 Sep 2023US$6.0tUS$2.8tUS$98.6b28.9x61.3x2.2x
Mon, 14 Aug 2023US$6.2tUS$2.8tUS$99.1b28.5x62.5x2.2x
Wed, 12 Jul 2023US$5.9tUS$2.7tUS$110.3b26.3x53.6x2.2x
Fri, 09 Jun 2023US$6.0tUS$2.7tUS$110.4b25.5x53.9x2.2x
Sun, 07 May 2023US$6.0tUS$2.7tUS$114.0b25x53x2.2x
Tue, 04 Apr 2023US$5.8tUS$2.5tUS$121.7b24.4x47.9x2.3x
Thu, 02 Mar 2023US$5.7tUS$2.5tUS$123.0b24.8x46.2x2.3x
Price to Earnings Ratio

46.2x


Total Market Cap: US$5.7tTotal Earnings: US$123.0bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.4x202420252026
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 51.1x which is lower than its 3-year average PE of 65.4x.
  • 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 9.9% 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 Market1.04%
Healthcare0.19%
Healthtech4.53%
Medical Equipment2.46%
Biotech1.00%
Life Sciences0.49%
Healthcare Services-0.79%
Pharma-1.30%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry, which is trading close to its 3-year average PE ratio of 56.2x.
    • Analysts are expecting annual earnings growth of 16.5%, which is higher than its past year's earnings growth of 7.4% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 22% over the next 5 years.
  • However this is lower than its past earnings growth rate of 59% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 11% 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
ISRG Intuitive SurgicalUS$504.053.7%
+US$6.5b		-14.8%PE62.7x
SYK StrykerUS$380.233.9%
+US$5.4b		-0.7%PE44.8x
MDLN MedlineUS$49.8011.8%
+US$4.4b		n/aPE32.7x
INSM InsmedUS$164.9110.9%
+US$3.8b		103.4%PS58.6x
MRNA ModernaUS$49.8718.1%
+US$3.2b		40.4%PS10.1x

Latest News

ABBV
US$224.81
AbbVie
7D
-2.9%
1Y
11.2%
ISRG
US$504.05
Intuitive Surgical
7D
3.7%
1Y
-14.8%

ISRG: Future Returns Will Hinge On Procedure Utilization Versus Sector Rotation Risk

We have raised our Intuitive Surgical fair value estimate by about $15 to $611.82 per share, as analysts factor in slightly higher revenue growth expectations tied to the Dv5 rollout and sector recovery, partly offset by modestly lower margin assumptions. Analyst Commentary Recent Street research around Intuitive Surgical reflects a mix of optimism about growth drivers such as the Dv5 rollout and capital spending trends, alongside more cautious views on valuation and policy risk.
PFE
US$26.65
Pfizer
7D
-3.4%
1Y
1.3%

PFE: Obesity Pipeline Progress Will Drive Post LOE Re Rating

Pfizer's updated analyst price target edges lower to about $35 per share. This reflects analysts' focus on ongoing losses of exclusivity, a slightly softer revenue and margin outlook, and tempered expectations for future P/E as some firms initiate or assume coverage with more cautious views around the next few years.
ALNY
US$336.19
Alnylam Pharmaceuticals
7D
6.9%
1Y
34.2%

ALNY: Fair View Weighs TTR Franchise Guidance Against Launch Execution Risks

The updated analyst price target for Alnylam Pharmaceuticals has decreased by about $45 per share, as analysts refresh their models with slightly softer revenue growth assumptions, a modestly higher long-term profit margin, and a reduced future P/E multiple. Analyst Commentary Recent Street research on Alnylam Pharmaceuticals points to a mixed backdrop, with several firms revisiting their models following Q4 results, preannounced revenue figures, and updated 2026 guidance.
MDT
US$96.86
Medtronic
7D
-2.6%
1Y
7.7%

MDT: Future Performance Will Reflect New Launches And Execution Toward Fiscal 2027

Our Medtronic price target edges up to $111.77 from $110.88 as analysts factor in recent Q3 results, modestly higher modeled revenue growth and profit margins, as well as a slightly lower future P/E multiple, alongside mixed but generally constructive Street views on new product launches and fiscal 2027 growth plans. Analyst Commentary Street research around Medtronic after fiscal Q3 clusters into two camps, with bullish analysts leaning into new product momentum and fiscal 2027 plans, and more cautious voices focusing on valuation, segment mix, and how durable current growth and profit trends might be.
INSM
US$164.91
Insmed
7D
10.9%
1Y
103.4%
VRTX
US$476.90
Vertex Pharmaceuticals
7D
-3.0%
1Y
-1.5%

VRTX: CF Reliance Will Expose Renal Pipeline Execution Risks

Vertex Pharmaceuticals' updated analyst price target reflects an increase of $23.78 to $401.30, as analysts incorporate refreshed Q4 outcomes, pipeline commentary on programs like povetacicept and IgAN, and modest adjustments to assumptions for revenue growth, profit margin, and future P/E. Analyst Commentary Street research around Vertex Pharmaceuticals has been active following the latest Q4 update, with several firms revisiting their models, refreshing pipeline assumptions, and revising price targets.
SYK
US$380.23
Stryker
7D
3.9%
1Y
-0.7%

SYK: Diversified Medtech Portfolio And Robotics Execution Will Support 2026 Upside

Analysts made a modest trim to their blended Stryker price target, reflecting mixed recent revisions that range from higher targets up to $465 with Outperform ratings to lower targets near $390 and $399 with a Hold rating, as they weigh the company's broader product reach and expected sales and earnings trends against valuation and sector-level risks. Analyst Commentary Recent research on Stryker reflects a split view, with some analysts leaning into the growth story and others more guarded on valuation and sector risks.
LLY
US$1,009.52
Eli Lilly
7D
-2.9%
1Y
15.5%
GILD
US$151.40
Gilead Sciences
7D
-2.3%
1Y
37.7%

GILD: Elevated Future Expectations Will Hinge On Execution In Oncology

Gilead Sciences' updated analyst price target has moved sharply higher to $122.64 from $91.83, as analysts broadly lift their targets into the $140 to $170 range, citing steadier HIV franchise expectations, contributions from recent launches, and adjusted assumptions for expenses and oncology assets. Analyst Commentary Recent Street research shows a clear tilt toward higher valuation frameworks for Gilead Sciences, with several firms taking their targets into a broad US$140 to US$170 range.
CI
US$280.31
Cigna Group
7D
-3.8%
1Y
-6.5%

CI: Higher Margin Outlook And Onsite Care Expansion Will Support Upside

Analysts have modestly lifted their price target on Cigna Group to $332.62 from $326.92, citing updated assumptions that combine slightly lower revenue growth with a higher profit margin and a future P/E of 15.62. What's in the News A class action lawsuit has been filed against Express Scripts, Cigna, and Evernorth, alleging a rebate diversion scheme that used an offshore entity, Ascent, to collect billions of dollars in kickbacks labeled as fees instead of passing rebates through to pharmacy benefit management clients, including the Plumbers' Welfare Fund.
MRNA
US$49.87
Moderna
7D
18.1%
1Y
40.4%
IBRX
US$8.70
ImmunityBio
7D
46.3%
1Y
154.4%
UNH
US$290.00
UnitedHealth Group
7D
-1.1%
1Y
-37.8%

UnitedHealth Group's Future Revenue Grows by 3.59%: What Will It Mean?

UnitedHealth (UNH): A Data Giant Hidden in an Insurer's Crisis Investment Narrative – February 2026 Price Target (12m): $395.00 (+35% upside) Rating: Strong Buy (Contrarian) 1. The Core Thesis: The "Optum" Mispricing The market is currently valuing UnitedHealth through the narrow lens of a traditional insurer struggling with Medicare Advantage (MA) rate cuts and CMS regulatory headwinds for 2027.
AMGN
US$374.75
Amgen
7D
1.5%
1Y
23.7%

AMGN: Long Patent Expiries And Heavier Spending Will Pressure Future Earnings

Analysts have lifted their price targets on Amgen by about $12 to reflect updated views on fair value, profitability, and future P/E assumptions, while also factoring in a higher discount rate and lower projected revenue growth. Analyst Commentary Recent research on Amgen points to a split view, with several firms lifting price targets while others are turning more cautious.
MDLN
US$49.80
Medline
7D
11.8%
1Y
n/a