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U.S. Healthcare Sector Analysis

UpdatedNov 24, 2024
DataAggregated Company Financials
Companies1401
  • 7D1.9%
  • 3M-6.4%
  • 1Y10.7%
  • YTD3.5%

Over the last 7 days, the Healthcare industry has risen 1.9%, driven by gains from AbbVie of 7.2%. In the same time, HCA Healthcare was down 5.3%. This means that the industry has gained 11% over the past year. As for the next few years, earnings are expected to grow by 22% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 24 Nov 2024US$6.0tUS$2.9tUS$77.3b28.2x78.1x2.1x
Tue, 22 Oct 2024US$6.2tUS$2.8tUS$58.7b32.1x106.4x2.2x
Thu, 19 Sep 2024US$6.3tUS$2.8tUS$60.2b31.1x104.5x2.2x
Sat, 17 Aug 2024US$6.1tUS$2.8tUS$56.1b32.8x109.5x2.2x
Mon, 15 Jul 2024US$6.3tUS$2.8tUS$62.2b31.2x101.7x2.2x
Wed, 12 Jun 2024US$6.2tUS$2.8tUS$63.6b30.2x97.9x2.2x
Fri, 10 May 2024US$6.1tUS$2.8tUS$62.9b30.6x96.7x2.2x
Sun, 07 Apr 2024US$6.2tUS$2.8tUS$84.1b32.4x73.2x2.2x
Tue, 05 Mar 2024US$6.3tUS$2.8tUS$85.0b31x74x2.3x
Thu, 01 Feb 2024US$6.4tUS$2.8tUS$80.6b31.6x79.2x2.3x
Sat, 30 Dec 2023US$6.2tUS$2.8tUS$91.5b32.6x68.2x2.2x
Mon, 27 Nov 2023US$5.9tUS$2.8tUS$91.4b28.6x64.4x2.1x
Wed, 25 Oct 2023US$5.7tUS$2.8tUS$99.6b24.8x57.3x2x
Fri, 22 Sep 2023US$5.9tUS$2.8tUS$98.6b27.4x60.1x2.1x
Sun, 20 Aug 2023US$6.1tUS$2.8tUS$99.2b27.9x61.4x2.2x
Tue, 18 Jul 2023US$6.0tUS$2.7tUS$110.9b26.1x54x2.2x
Thu, 15 Jun 2023US$6.0tUS$2.7tUS$110.1b25.6x54.1x2.2x
Sat, 13 May 2023US$6.0tUS$2.7tUS$114.6b24.7x52.3x2.2x
Mon, 10 Apr 2023US$5.9tUS$2.5tUS$124.4b24.6x47.6x2.4x
Wed, 08 Mar 2023US$5.7tUS$2.5tUS$122.3b24.8x46.5x2.3x
Fri, 03 Feb 2023US$6.0tUS$2.5tUS$135.3b23.8x44.5x2.4x
Sun, 01 Jan 2023US$6.1tUS$2.5tUS$135.6b23.1x44.7x2.5x
Tue, 29 Nov 2022US$6.0tUS$2.4tUS$133.6b23.8x44.8x2.5x
Thu, 27 Oct 2022US$5.8tUS$2.4tUS$157.4b22.8x37.1x2.4x
Sat, 24 Sep 2022US$5.5tUS$2.4tUS$155.9b20.7x35.4x2.3x
Mon, 22 Aug 2022US$6.0tUS$2.4tUS$157.0b24x38.4x2.5x
Wed, 20 Jul 2022US$5.9tUS$2.6tUS$165.3b24.9x35.8x2.3x
Fri, 17 Jun 2022US$5.4tUS$2.6tUS$165.3b22.8x32.4x2.1x
Sun, 15 May 2022US$5.7tUS$2.6tUS$164.8b25x34.9x2.2x
Tue, 12 Apr 2022US$6.5tUS$2.5tUS$174.7b29.4x37.5x2.6x
Thu, 10 Mar 2022US$6.2tUS$2.5tUS$171.0b28.1x36.1x2.5x
Sat, 05 Feb 2022US$6.3tUS$2.4tUS$165.0b29.7x38.2x2.6x
Mon, 03 Jan 2022US$6.9tUS$2.4tUS$145.5b32.9x47.5x2.9x
Wed, 01 Dec 2021US$6.6tUS$2.4tUS$146.5b30.6x44.8x2.7x
Price to Earnings Ratio

44.8x


Total Market Cap: US$6.6tTotal Earnings: US$146.5bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 59.5x202220232024
Current Industry PE
  • Investors are optimistic on the American Healthcare industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 78.1x which is higher than its 3-year average PE of 59.5x.
  • The 3-year average PS ratio of 2.3x is higher than the industry's current PS ratio of 2.1x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have declined 19% per year over the last three years.
  • Meanwhile revenues for these companies have grown 6.8% 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 Market2.21%
Healthcare1.85%
Life Sciences2.84%
Biotech2.50%
Healthtech2.12%
Healthcare Services1.61%
Pharma1.56%
Medical Equipment1.48%
Industry PE
  • Investors are most optimistic about the Life Sciences industry which is trading above its 3-year average PE ratio of 56.3x.
    • Analysts are expecting annual earnings growth of 18.4%, which is higher than its past year's earnings decline of 4.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Healthtech industry, expecting annual earnings growth of 31% 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 17% 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
ABBV AbbVieUS$176.957.2%
+US$21.1b		27.6%PE61.5x
MRK MerckUS$99.183.0%
+US$7.3b		-2.6%PE20.7x
ISRG Intuitive SurgicalUS$547.873.8%
+US$7.2b		72.3%PE87x
CVS CVS HealthUS$58.019.1%
+US$6.1b		-16.4%PE14.6x
AMGN AmgenUS$294.533.9%
+US$5.9b		11.0%PE37.4x
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Latest News

MRK

US$99.18

Merck

7D

3.0%

1Y

-2.6%

ABBV

US$176.95

AbbVie

7D

7.2%

1Y

27.6%

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Nov 22

REGN

US$738.00

Regeneron Pharmaceuticals

7D

-2.5%

1Y

-7.6%

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Nov 22
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PFE

US$25.65

Pfizer

7D

3.4%

1Y

-15.9%

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Nov 21

UNH

US$590.87

UnitedHealth Group

7D

-0.2%

1Y

8.0%

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Nov 21

SYK

US$384.85

Stryker

7D

-1.3%

1Y

31.1%

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Nov 21
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CVS

US$58.01

CVS Health

7D

9.1%

1Y

-16.4%

AMGN

US$294.53

Amgen

7D

3.9%

1Y

11.0%

MDT

US$86.21

Medtronic

7D

-1.5%

1Y

9.2%

BMY

US$58.87

Bristol-Myers Squibb

7D

4.7%

1Y

18.3%

THC

US$143.63

Tenet Healthcare

7D

-7.5%

1Y

111.2%

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Nov 17
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BSX

US$90.00

Boston Scientific

7D

3.5%

1Y

61.8%

HCA

US$324.93

HCA Healthcare

7D

-5.3%

1Y

28.8%

ISRG

US$547.87

Intuitive Surgical

7D

3.8%

1Y

72.3%

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Nov 14

VRTX

US$450.97

Vertex Pharmaceuticals

7D

-3.2%

1Y

27.7%

DXCM

US$72.83

DexCom

7D

-4.0%

1Y

-35.5%

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Nov 08
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