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

U.S. Healthcare Sector Analysis

UpdatedMay 23, 2025
DataAggregated Company Financials
Companies1404
  • 7D-0.05%
  • 3M-11.8%
  • 1Y-11.9%
  • YTD-7.5%

The Healthcare is pretty flat in the last 7 days, but UnitedHealth Group has stood out, gaining 8.1%. Unfortunately though, the industry is down 12% over the past 12 months. 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$5.3tUS$3.0tUS$126.7b22.6x42.2x1.8x
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 42.2x 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 8.5% 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-1.37%
Healthcare-0.051%
Biotech2.72%
Healthcare Services1.57%
Pharma0.24%
Life Sciences-1.61%
Medical Equipment-2.40%
Healthtech-4.44%
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 16.5%, 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
UNH UnitedHealth GroupUS$296.678.1%
+US$20.2b		-42.6%PE12.2x
GILD Gilead SciencesUS$106.746.4%
+US$8.0b		61.3%PE22.3x
MRK MerckUS$77.844.1%
+US$7.6b		-40.6%PE11.2x
JNJ Johnson & JohnsonUS$152.612.0%
+US$7.2b		1.9%PE16.8x
PFE PfizerUS$23.041.9%
+US$2.5b		-19.7%PE16.7x
Simply Wall St™
Simply Wall Street Pty Ltd
Level 7, 320 Pitt Street, Sydney
Download on the App StoreGet it on Google Play
Popular Markets
USAUUKINCAZA
About UsCareersPlans & PricingLogin
Help CenterLatest CoveragePodcastsAffiliate ProgramBusiness & EnterpriseWhat's New
Financial Services GuideTerms and ConditionsPrivacy Policy
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

GILD

US$106.74

Gilead Sciences

7D

6.4%

1Y

61.3%

PFE

US$23.04

Pfizer

7D

1.9%

1Y

-19.7%

LLY

US$715.20

Eli Lilly

7D

-2.5%

1Y

-11.5%

BMY

US$47.03

Bristol-Myers Squibb

7D

2.7%

1Y

13.2%

TMO

US$400.48

Thermo Fisher Scientific

7D

-1.1%

1Y

-31.5%

UNH

US$296.67

UnitedHealth Group

7D

8.1%

1Y

-42.6%

MDT

US$80.91

Medtronic

7D

-6.0%

1Y

-0.6%

DHR

US$187.48

Danaher

7D

-1.8%

1Y

-28.3%

Is Danaher (NYSE:DHR) A Risky Investment?

May 22
Is Danaher (NYSE:DHR) A Risky Investment?

MRK

US$77.84

Merck

7D

4.1%

1Y

-40.6%

Merck & Co. Stock: Inventory Doesn't Lie

May 22

ABT

US$131.50

Abbott Laboratories

7D

-1.4%

1Y

26.2%

The Growth Of Medical Devices Needs To Continue In Order To Invest In Abbott

May 21

JNJ

US$152.61

Johnson & Johnson

7D

2.0%

1Y

1.9%

Johnson & Johnson's (NYSE:JNJ) Upcoming Dividend Will Be Larger Than Last Year's

May 21
Johnson & Johnson's (NYSE:JNJ) Upcoming Dividend Will Be Larger Than Last Year's

SYK

US$378.28

Stryker

7D

-3.5%

1Y

14.6%

HCA

US$376.64

HCA Healthcare

7D

-2.3%

1Y

19.4%

ISRG

US$542.67

Intuitive Surgical

7D

-3.1%

1Y

36.2%

BNTX

US$99.07

BioNTech

7D

7.3%

1Y

0.07%

SMMT

US$25.77

Summit Therapeutics

7D

11.6%

1Y

496.5%