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

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 55.2x 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.

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

Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 55.9x. Analysts are expecting annual earnings growth of 15.8%, which is higher than its past year's earnings growth of 12.6% per year.

U.S. Healthcare Sector Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Thu, 30 Jul 2026	US$7.0t	US$3.3t	US$127.6b	26.3x	55.2x	2.1x
Sat, 27 Jun 2026	US$6.7t	US$3.3t	US$121.7b	24.8x	54.6x	2x
Mon, 25 May 2026	US$6.4t	US$3.3t	US$122.9b	23.4x	51.9x	1.9x
Wed, 22 Apr 2026	US$6.3t	US$3.3t	US$121.2b	23.6x	52x	1.9x
Fri, 20 Mar 2026	US$6.2t	US$3.3t	US$124.3b	22.8x	49.5x	1.9x
Sun, 15 Feb 2026	US$6.5t	US$3.3t	US$128.1b	26.5x	51.1x	2x
Tue, 13 Jan 2026	US$6.6t	US$3.2t	US$136.3b	26.6x	48.4x	2.1x
Thu, 11 Dec 2025	US$6.3t	US$3.2t	US$134.1b	26.2x	46.9x	2x
Sat, 08 Nov 2025	US$6.0t	US$3.2t	US$132.2b	25.5x	45.4x	1.9x
Mon, 06 Oct 2025	US$6.0t	US$3.1t	US$137.8b	24.7x	43.8x	2x
Wed, 03 Sep 2025	US$5.7t	US$3.1t	US$137.6b	23.3x	41.4x	1.8x
Fri, 01 Aug 2025	US$5.5t	US$3.1t	US$127.6b	23.4x	43.1x	1.8x
Sun, 29 Jun 2025	US$5.5t	US$3.0t	US$127.5b	24.8x	43.1x	1.8x
Tue, 27 May 2025	US$5.3t	US$3.0t	US$126.9b	22.6x	41.7x	1.7x
Thu, 24 Apr 2025	US$5.3t	US$2.7t	US$98.1b	24.8x	54x	2x
Sat, 22 Mar 2025	US$5.7t	US$2.6t	US$81.8b	26.6x	70x	2.2x
Mon, 17 Feb 2025	US$5.8t	US$2.6t	US$82.1b	26.7x	70.8x	2.2x
Wed, 15 Jan 2025	US$5.8t	US$2.9t	US$78.9b	28.1x	73.9x	2x
Fri, 13 Dec 2024	US$6.0t	US$2.9t	US$77.6b	28.6x	77x	2x
Sun, 10 Nov 2024	US$6.3t	US$2.9t	US$76.0b	28.3x	82.8x	2.2x
Tue, 08 Oct 2024	US$6.2t	US$2.8t	US$60.1b	30.3x	102.4x	2.2x
Thu, 05 Sep 2024	US$6.3t	US$2.8t	US$60.4b	31.6x	104.2x	2.2x
Sat, 03 Aug 2024	US$6.4t	US$2.9t	US$63.3b	31.8x	100.9x	2.2x
Mon, 01 Jul 2024	US$6.2t	US$2.8t	US$62.2b	30.5x	99.3x	2.2x
Wed, 29 May 2024	US$6.1t	US$2.8t	US$63.8b	30.3x	96.3x	2.2x
Fri, 26 Apr 2024	US$6.0t	US$2.8t	US$72.2b	30.4x	82.7x	2.1x
Sun, 24 Mar 2024	US$6.2t	US$2.8t	US$82.2b	31.8x	75.9x	2.2x
Tue, 20 Feb 2024	US$6.3t	US$2.8t	US$82.6b	30.1x	75.9x	2.2x
Thu, 18 Jan 2024	US$6.3t	US$2.8t	US$90.8b	32x	69.5x	2.2x
Sat, 16 Dec 2023	US$6.1t	US$2.8t	US$91.5b	32.3x	66.5x	2.2x
Mon, 13 Nov 2023	US$5.7t	US$2.8t	US$91.1b	26.3x	62.2x	2x
Wed, 11 Oct 2023	US$5.9t	US$2.8t	US$98.3b	26.9x	60.2x	2.1x
Fri, 08 Sep 2023	US$6.1t	US$2.8t	US$98.6b	26.9x	62x	2.2x
Sun, 06 Aug 2023	US$6.1t	US$2.8t	US$100.3b	28.8x	60.8x	2.2x


US Market	-2.63%
Healthcare	3.18%
Healthtech	9.92%
Medical Equipment	7.28%
Life Sciences	7.17%
Pharma	3.36%
Biotech	0.47%
Healthcare Services	-0.40%

Company	Last Price	7D	1Y	Valuation
SYK Stryker	US$348.04	9.1% +US$11.1b	-11.4%	PE40x
REGN Regeneron Pharmaceuticals	US$738.41	13.3% +US$8.8b	35.4%	PE17x
AMGN Amgen	US$387.74	4.4% +US$8.8b	31.4%	PE26.8x
ISRG Intuitive Surgical	US$352.97	6.3% +US$7.4b	-26.6%	PE39.7x
ABT Abbott Laboratories	US$105.61	4.8% +US$7.3b	-16.3%	PE33.8x

Announcement • 3h

Johnson & Johnson Receives U.S. FDA Priority Review For RYBREVANT FASPRO As Potential First-In-Class EGFR- And MET-Targeted Subcutaneous Treatment For Advanced Head And Neck Cancer

Johnson & Johnson has received Priority Review from the U.S. Food and Drug Administration for the supplemental Biologics License Application for subcutaneous amivantamab and hyaluronidase-lpuj for adults with recurrent or metastatic head and neck squamous cell carcinoma. If approved, it would provide a new treatment for patients whose disease has progressed following platinum-based chemotherapy and a PD-1 or PD-L1 inhibitor. Priority Review is granted to medicines that may offer significant improvements in safety or effectiveness for serious conditions and shortens the FDA review timeline to approximately six months. Subcutaneous amivantamab was designed to target both epidermal growth factor receptor (EGFR) and mesenchymal-epithelial transition (MET) while engaging the immune system, offering a differentiated scientific approach in recurrent or metastatic head and neck squamous cell carcinoma. Overexpression of EGFR and MET receptors is seen in 80 to 90% of head and neck squamous cell carcinoma tumors and has been implicated in tumor progression and treatment resistance. The FDA's decision to grant Priority Review is supported by results from the pivotal Phase 1b/2 OrigAMI-4 study, which showed that 42% of patients responded to treatment with monotherapy subcutaneous amivantamab, with more than one-third of responders achieving a complete response. The study excluded patients with oropharyngeal squamous cell carcinoma caused by human papillomavirus, as well as those who had received prior anti-EGFR therapy. RYBREVANT FASPRO is approved in more than 40 countries, including the United States, Europe, and Japan, as a subcutaneous treatment for non-small cell lung cancer and continues to be evaluated in additional tumor types. OrigAMI-4 is an open-label Phase 1b/2 study evaluating RYBREVANT FASPRO in recurrent or metastatic head and neck squamous cell carcinoma. The study includes six cohorts exploring RYBREVANT FASPRO across different treatment settings and regimens. Cohort 1 evaluated RYBREVANT FASPRO as monotherapy in patients with recurrent or metastatic head and neck squamous cell carcinoma who had received prior platinum-based chemotherapy and PD-1/PD-L1 immunotherapy. Patients with HPV-positive oropharyngeal squamous cell carcinoma were excluded, as well as those with prior anti-EGFR therapy. RYBREVANT FASPRO was administered on a weekly schedule during the initial treatment period followed by dosing every three weeks, with weight-based dosing adjustments. The primary endpoint across cohorts is overall response rate, as assessed by investigators, using RECIST v1.1. RYBREVANT FASPRO (amivantamab and hyaluronidase-lpuj) received U.S. FDA approval in December 2025 and is approved in multiple markets worldwide for the treatment of adults with EGFR-mutated non-small cell lung cancer, including those with exon 19 deletions, exon 21 L858R substitution mutations, and exon 20 insertion mutations. It is the only subcutaneous therapy approved for these EGFR-mutated non-small cell lung cancer populations and may be used as monotherapy or in combination with LAZCLUZE or chemotherapy, depending on the specific mutation and treatment setting. For eligible patients, RYBREVANT FASPRO offers a once-monthly dosing option following initial weekly dosing. RYBREVANT FASPRO is co-formulated with recombinant human hyaluronidase PH20, Halozyme's ENHANZE drug delivery technology. RYBREVANT FASPRO is approved in the U.S. for the same indications as intravenous RYBREVANT across multiple markets. RYBREVANT is a first-in-class, fully human bispecific antibody targeting EGFR and MET, designed to inhibit tumor growth while engaging the immune system. The effectiveness of RYBREVANT FASPRO is supported by the established clinical profile of RYBREVANT, including data from multiple Phase 3 studies such as MARIPOSA, which demonstrated improvements in progression-free and overall survival when used in combination with LAZCLUZE in first-line advanced EGFR-mutated non-small cell lung cancer. The National Comprehensive Cancer Network Clinical Practice Guidelines in Oncology include amivantamab-vmjw across its FDA-approved treatment settings, including as a Category 1 preferred option in combination with lazertinib for first-line treatment of patients with locally advanced or metastatic non-small cell lung cancer with EGFR exon 19 deletions or exon 21 L858R mutations. Subcutaneous amivantamab and hyaluronidase-lpuj may be substituted for intravenous amivantamab-vmjw where appropriate. The NCCN Guidelines for Central Nervous System Cancers also include amivantamab-based regimens, including in combination with lazertinib, as the only NCCN-preferred combination options for patients with EGFR-mutated non-small cell lung cancer and brain metastases. Beyond non-small cell lung cancer, RYBREVANT-based therapies are being investigated across other solid tumors, including head and neck and colorectal cancers. RYBREVANT FASPRO and RYBREVANT are indicated in combination with LAZCLUZE for the first-line treatment of adult patients with locally advanced or metastatic non-small cell lung cancer with EGFR exon 19 deletions or exon 21 L858R substitution mutations, as detected by an FDA-approved test; in combination with carboplatin and pemetrexed for the treatment of adult patients with locally advanced or metastatic non-small cell lung cancer with EGFR exon 19 deletions or exon 21 L858R substitution mutations, whose disease has progressed on or after treatment with an EGFR tyrosine kinase inhibitor; in combination with carboplatin and pemetrexed for the first-line treatment of adult patients with locally advanced or metastatic non-small cell lung cancer with EGFR exon 20 insertion mutations, as detected by an FDA-approved test; as a single agent for the treatment of adult patients with locally advanced or metastatic non-small cell lung cancer with EGFR exon 20 insertion mutations, as detected by an FDA approved test, whose disease has progressed on or after platinum-based chemotherapy. RYBREVANT FASPRO is contraindicated in patients with known hypersensitivity to hyaluronidase or to any of its excipients.

Announcement • Jul 29

Amgen Receives Positive CHMP Opinion for Expanded Use of Repatha to Reduce Cardiovascular Risk in High-Risk Adults

Amgen announced the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) has adopted a positive opinion for Repatha (evolocumab) for adults with established or at high risk for atherosclerotic cardiovascular disease to reduce cardiovascular risk by lowering LDL-C levels, as an adjunct to correction of other risk factors. The recommendation is based on results from the Phase 3 VESALIUS-CV trial, which demonstrated that Repatha significantly reduced the risk of major adverse cardiovascular events (MACE) in high-risk adults without a prior heart attack or stroke, when added to statins or other LDL-C-lowering treatments. Repatha is the only PCSK9 inhibitor proven in a Phase 3 clinical trial to reduce the risk of a first major cardiovascular event. If approved by the European Commission, this expanded indication has the potential to redefine cardiovascular care for appropriate patients in Europe. Cardiovascular disease is the leading cause of death worldwide. Recent research shows that more than 99% of people who experience a first-time cardiovascular event have at least one traditional risk factor, including high LDL-C, which is one of the most modifiable risk factors for heart attack or stroke. While the European Society of Cardiology (ESC) and European Atherosclerosis Society (EAS) guidelines recommend intensive LDL-C lowering based on cardiovascular risk, many high-risk patients remain above recommended LDL-C targets despite available lipid-lowering therapies. Repatha was initially approved in the European Union in 2015 for the treatment of adults and pediatric patients with primary hypercholesterolemia or mixed dyslipidemia, as well as to reduce cardiovascular risk in adults with established ASCVD. The European Commission is expected to make a final decision on the application in the coming months. VESALIUS-CV is a Phase 3, double-blind, randomized, placebo-controlled, global clinical trial designed to evaluate the impact of LDL-C lowering with evolocumab on MACE in adults at high CV risk without prior heart attack or stroke. Results were published in the New England Journal of Medicine in November 2025. Repatha demonstrated a 25% relative reduction in the risk of a composite of coronary heart disease (CHD) death, heart attack or ischemic stroke (3-P MACE), and 19% reduction in a broader composite that also included any ischemia-driven arterial revascularization (4-P MACE). Evolocumab also reduced the risk of heart attack by 36%. A consistent benefit was seen with evolocumab vs. placebo across all three endpoints, including the reduced risk of heart attack by 36%. In a lipid sub-study, adding evolocumab to a maximally tolerated dose of statin and/or ezetimibe substantially lowered LDL-C levels among observed patients, with a median level of 45 mg/dL compared to 109 mg/dL in the placebo group. VESALIUS-CV enrolled more than 12,000 patients with known ASCVD or high-risk diabetes, who had no history of heart attack or stroke, an LDL-C = 90 mg/dL, or non-high-density lipoprotein cholesterol (non-HDL-C) = 120 mg/dL, or apolipoprotein B = 80 mg/dL; and treated with highest tolerated dose of statin and/or ezetimibe. The median baseline LDL-C was 122 mg/dL (IQR, 104-149 mg/dL) on local lab testing. Participants were randomized to receive evolocumab or placebo in addition to optimized lipid-lowering therapy and were followed for a median of approximately 4.6 years. Repatha is a human monoclonal antibody that inhibits proprotein convertase subtilisin/kexin type 9 (PCSK9). Repatha binds to PCSK9 and inhibits circulating PCSK9 from binding to the low-density lipoprotein (LDL) receptor (LDLR), preventing PCSK9-mediated LDLR degradation and permitting LDLR to recycle back to the liver cell surface. By inhibiting the binding of PCSK9 to LDLR, Repatha increases the number of LDLRs available to clear LDL from the blood, thereby lowering LDL-C levels. Repatha is one of the most extensively studied PCSK9 inhibitors, with clinical and real-world evidence across diverse populations and CV risk profiles. The clinical benefits and safety of Repatha have been studied for 15 years in 51 clinical trials with over 57,000 patients. Repatha is the only PCSK9 inhibitor to demonstrate a significant reduction of cardiovascular events as both high-risk primary and secondary prevention, with patients achieving and maintaining dramatic LDL-C reductions using Repatha only once every two weeks. Repatha was first approved in 2015 and has since been used by more than 10 million patients globally. In August 2025, the U.S. Food and Drug Administration broadened the approved use of Repatha to include adults at increased risk for major adverse CV events due to uncontrolled LDL-C. Repatha is approved in 74 countries, including the U.S., Japan, Canada and in all 28 countries that are members of the European Union. Applications in other countries are pending. In Europe Repatha is approved for use in: Hypercholesterolemia and mixed dyslipidemia. Repatha is indicated in adults with primary hypercholesterolemia (heterozygous familial and non-familial) or mixed dyslipidemia, as an adjunct to diet: in combination with a statin or statin with other lipid lowering therapies in patients unable to reach LDL-C goals with the maximum tolerated dose of a statin or, alone or in combination with other lipid-lowering therapies in patients who are statin-intolerant, or for whom a statin is contraindicated. Homozygous familial hypercholesterolemia. Repatha is indicated in adults and adolescents aged 12 years and over with homozygous familial hypercholesterolemia in combination with other lipid-lowering therapies. Atherosclerotic cardiovascular disease. Repatha is indicated in adults with established or at high risk for atherosclerotic cardiovascular disease to reduce cardiovascular risk by lowering LDL-C levels, as an adjunct to correction of other risk factors: in combination with the maximum tolerated dose of a statin with or without other lipid-lowering therapies or, alone or in combination with other lipid-lowering therapies in patients who are statin-intolerant, or for whom a statin is contraindicated.

U.S. Healthcare Sector Analysis

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Latest News

Price target increased by 13% to US$392

Alnylam Pharmaceuticals, Inc. Updates Earnings Guidance for the Full Year 2026

Johnson & Johnson Receives U.S. FDA Priority Review For RYBREVANT FASPRO As Potential First-In-Class EGFR- And MET-Targeted Subcutaneous Treatment For Advanced Head And Neck Cancer

Bristol Myers Squibb: Upgrading To Buy On Positive Q2 Earnings, Long-Term Outlook

Abbott Launches Major TriClip Heart Valve Postmarket Study Targeting 1,000 Patients

Teva Pharmaceutical Industries Limited Updates Earnings Guidance for 2026

Amgen Receives Positive CHMP Opinion for Expanded Use of Repatha to Reduce Cardiovascular Risk in High-Risk Adults

Centene's Margin Recovery Keeps The Upside Alive

MRK: Pipeline Execution And Policy Headwinds Will Restrain Multiple Expansion

UNH: Medicare Reset And AI Efficiency Gains Will Drive Multi Year Margin Recovery

Intuitive Surgical, Inc. Announces Recall for Da Vinci Sp Instrument Arm Drape Recall

Regeneron: I'm Not Concerned About The Declining ROIC And Operating Margins

LLY: GLP-1 Leadership And Retatrutide Data Will Shape Balanced Outlook

Fourth quarter dividend increased to US$0.94

CVS: GLP‑1 Expansion And Legal Settlements Will Shape Future Earnings Stability

Stryker Debuts Mako RPS Handheld Robotic System for Knee Replacement in the U.S.