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U.S. Healthcare Sector Analysis

UpdatedMar 10, 2026
DataAggregated Company Financials
Companies1395
  • 7D-2.5%
  • 3M1.0%
  • 1Y6.5%
  • YTD-2.1%

In the last week, the Healthcare industry is down 2.5% with Johnson & Johnson down the most at 2.4%. Over the past 12 months, the industry was up 6.5%. 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
Wed, 11 Mar 2026US$6.4tUS$3.3tUS$125.9b25.5x50.5x1.9x
Fri, 06 Feb 2026US$6.5tUS$3.2tUS$126.3b27x51.7x2x
Sun, 04 Jan 2026US$6.5tUS$3.2tUS$135.6b25.7x47.8x2x
Tue, 02 Dec 2025US$6.5tUS$3.2tUS$133.5b25.9x48.9x2.1x
Thu, 30 Oct 2025US$6.1tUS$3.1tUS$137.4b25.2x44.1x1.9x
Sat, 27 Sep 2025US$5.6tUS$3.1tUS$137.6b23.6x40.7x1.8x
Mon, 25 Aug 2025US$5.7tUS$3.1tUS$137.2b23.7x41.8x1.9x
Wed, 23 Jul 2025US$5.4tUS$3.0tUS$128.4b24.9x41.9x1.8x
Fri, 20 Jun 2025US$5.5tUS$3.0tUS$127.5b22.8x42.8x1.8x
Sun, 18 May 2025US$5.4tUS$3.0tUS$126.1b23.3x42.9x1.8x
Tue, 15 Apr 2025US$5.3tUS$2.6tUS$82.2b25.4x64.6x2x
Thu, 13 Mar 2025US$5.7tUS$2.6tUS$78.6b25.9x72.2x2.1x
Sat, 08 Feb 2025US$5.9tUS$2.6tUS$89.7b26.5x65.9x2.2x
Mon, 06 Jan 2025US$5.8tUS$2.9tUS$79.3b27.3x73.5x2x
Wed, 04 Dec 2024US$6.2tUS$2.9tUS$77.4b28.3x79.6x2.1x
Fri, 01 Nov 2024US$6.1tUS$2.9tUS$71.8b26.8x85.2x2.1x
Sun, 29 Sep 2024US$6.2tUS$2.9tUS$70.6b30.1x87.9x2.1x
Tue, 27 Aug 2024US$6.3tUS$2.8tUS$56.5b31.9x111.2x2.2x
Thu, 25 Jul 2024US$6.3tUS$2.8tUS$60.9b31.6x104.1x2.2x
Sat, 22 Jun 2024US$6.2tUS$2.8tUS$62.5b30x98.8x2.2x
Mon, 20 May 2024US$6.2tUS$2.8tUS$64.1b31.1x97.2x2.2x
Wed, 17 Apr 2024US$5.9tUS$2.8tUS$85.4b31.3x69.7x2.1x
Fri, 15 Mar 2024US$6.3tUS$2.8tUS$84.5b31.7x74.4x2.3x
Sun, 11 Feb 2024US$6.2tUS$2.8tUS$76.3b31.6x81x2.2x
Tue, 09 Jan 2024US$6.3tUS$2.8tUS$90.0b31.5x70.1x2.2x
Thu, 07 Dec 2023US$5.9tUS$2.8tUS$91.4b29.3x65.1x2.1x
Sat, 04 Nov 2023US$5.7tUS$2.8tUS$88.4b26.7x65x2x
Mon, 02 Oct 2023US$5.9tUS$2.8tUS$98.2b27.6x59.7x2.1x
Wed, 30 Aug 2023US$6.2tUS$2.8tUS$99.0b27.7x62.3x2.2x
Fri, 28 Jul 2023US$6.1tUS$2.7tUS$113.2b27.7x54x2.2x
Sun, 25 Jun 2023US$6.0tUS$2.7tUS$109.8b26.6x54.8x2.2x
Tue, 23 May 2023US$6.0tUS$2.7tUS$110.8b24.6x54x2.2x
Thu, 20 Apr 2023US$6.0tUS$2.5tUS$118.4b24.5x50.5x2.4x
Sat, 18 Mar 2023US$5.6tUS$2.5tUS$123.9b23.3x45.3x2.3x
Price to Earnings Ratio

45.3x


Total Market Cap: US$5.6tTotal Earnings: US$123.9bTotal 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 50.5x 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 Market-1.50%
Healthcare-2.51%
Healthtech4.61%
Biotech-1.19%
Life Sciences-1.67%
Pharma-2.23%
Healthcare Services-3.61%
Medical Equipment-4.20%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 56.1x.
    • Analysts are expecting annual earnings growth of 16.1%, which is higher than its past year's earnings growth of 6.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 23% over the next 5 years.
  • However this is lower than its past earnings growth rate of 50% 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
VRTX Vertex PharmaceuticalsUS$499.175.3%
+US$6.3b		2.2%PE32.1x
PFE PfizerUS$27.162.2%
+US$3.3b		4.5%PE19.9x
MRNA ModernaUS$54.9810.3%
+US$2.0b		62.9%PS11.2x
BBIO BridgeBio PharmaUS$74.3215.2%
+US$1.9b		129.8%PS28.7x
HIMS Hims & Hers HealthUS$23.4748.4%
+US$1.7b		-32.4%PE41.7x

Latest News

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Dianthus Therapeutics
7D
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1Y
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ABBV
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AbbVie
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1Y
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VRTX
US$499.17
Vertex Pharmaceuticals
7D
5.3%
1Y
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SYK
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Stryker
7D
-6.7%
1Y
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PFE
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Pfizer
7D
2.2%
1Y
4.5%
HIMS
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Hims & Hers Health
7D
48.4%
1Y
-32.4%
XENE
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Xenon Pharmaceuticals
7D
38.4%
1Y
74.4%

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UTHR
US$535.81
United Therapeutics
7D
7.5%
1Y
76.0%
MDT
US$89.89
Medtronic
7D
-7.1%
1Y
-3.6%
MRK
US$117.09
Merck
7D
-2.3%
1Y
23.6%
JNJ
US$243.71
Johnson & Johnson
7D
-1.2%
1Y
46.9%
MCK
US$928.69
McKesson
7D
-6.7%
1Y
42.2%
BBIO
US$74.32
BridgeBio Pharma
7D
15.2%
1Y
129.8%

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MRNA
US$54.98
Moderna
7D
10.3%
1Y
62.9%
DHR
US$195.22
Danaher
7D
-4.3%
1Y
-5.1%

DHR: Masimo Cash Deal Will Support Re Rating And Premium Multiple

The analyst price target for Danaher has moved higher by a mid single digit dollar amount, reflecting updated assumptions for slightly stronger revenue growth and margins, alongside recent Street research that raised targets following the Masimo acquisition announcement and sector wide target adjustments. Analyst Commentary Recent Street research around Danaher reflects a mix of optimism on the Masimo acquisition and valuation, alongside a more cautious stance on deal terms and execution risk.
UNH
US$282.34
UnitedHealth Group
7D
-2.4%
1Y
-41.9%

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