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U.S. Healthcare Sector Analysis

UpdatedAug 23, 2026
DataAggregated Company Financials
Companies1380
  • 7D4.2%
  • 3M17.0%
  • 1Y28.6%
  • YTD13.4%

Over the last 7 days, the Healthcare industry has risen 4.2%, driven by gains from Eli Lilly of 6.4%. This means that the industry has gained 29% over the past year. As for the next few years, earnings are expected to grow by 20% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 23 Aug 2026US$7.4tUS$3.4tUS$116.0b27.1x63.8x2.2x
Tue, 21 Jul 2026US$6.9tUS$3.3tUS$123.3b25.2x55.6x2.1x
Thu, 18 Jun 2026US$6.5tUS$3.3tUS$122.0b23x52.9x1.9x
Sat, 16 May 2026US$6.7tUS$3.3tUS$122.7b22.7x54.5x2x
Mon, 13 Apr 2026US$6.2tUS$3.3tUS$127.2b22.7x48.8x1.9x
Wed, 11 Mar 2026US$6.4tUS$3.3tUS$124.4b25x51.7x2x
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
Price to Earnings Ratio

62.3x


Total Market Cap: US$6.2tTotal Earnings: US$99.0bTotal Revenue: US$2.8tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.5x202420252026
Current Industry PE
  • Investors are relatively neutral on the American Healthcare industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 65.5x.
  • 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 grown 5.4% per year over the last three years.
  • Revenues for these companies have grown 6.7% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

US Market-1.49%
Healthcare4.20%
Life Sciences7.40%
Biotech7.11%
Pharma5.84%
Healthtech2.49%
Medical Equipment0.37%
Healthcare Services-1.43%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 55.5x.
    • Analysts are expecting annual earnings growth of 18.6%, which is higher than its past year's earnings growth of 9.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 28% over the next 5 years.
  • However this is lower than its past earnings growth rate of 65% per year.
  • 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
LLY Eli LillyUS$1.26k6.4%
+US$67.1b		76.4%PE41.9x
MRK MerckUS$152.5512.3%
+US$41.2b		74.6%PE118.6x
MRNA ModernaUS$145.13129.2%
+US$32.7b		435.1%PS26x
ABBV AbbVieUS$264.966.2%
+US$27.4b		25.8%PE74.7x
JNJ Johnson & JohnsonUS$270.243.8%
+US$23.8b		50.7%PE31x

Latest News

ABBV
US$264.96
AbbVie
7D
6.2%
1Y
25.8%
JNJ
US$270.24
Johnson & Johnson
7D
3.8%
1Y
50.7%
Seeking Alpha • 9h

Johnson & Johnson: Buy IMAAVY Label Expansion First And Continued CAPLYTA Sales Push

Summary Johnson & Johnson (JNJ) maintains a 'Buy' rating, driven by robust Q2 2026 sales growth and pipeline advancements. JNJ's top-performing drugs, DARZALEX and TREMFYA, fueled a 6.6% revenue increase to $25.3 billion, prompting raised full-year 2026 guidance. CAPLYTA's label expansion for schizophrenia relapse prevention and IMAAVY's potential first-mover status in wAIHA represent major growth catalysts. Risks include uncertain sustainability of high sales growth rates and regulatory outcomes for key pipeline assets. Read the full article on Seeking Alpha
CAH
US$229.51
Cardinal Health
7D
-2.4%
1Y
55.0%
SYK
US$329.45
Stryker
7D
-2.9%
1Y
-16.4%
DHR
US$218.85
Danaher
7D
8.1%
1Y
3.3%
MRK
US$152.55
Merck
7D
12.3%
1Y
74.6%
TMO
US$629.27
Thermo Fisher Scientific
7D
7.0%
1Y
25.9%
LLY
US$1,255.40
Eli Lilly
7D
6.4%
1Y
76.4%
Narrative Update • Aug 22

LLY: Obesity Franchise Concentration And Pricing Pressure Will Constrain Future Upside

Analysts have lifted the Eli Lilly fair value estimate from $899.73 to $982.09. Higher price targets reflect confidence that strong incretin demand, obesity franchise momentum and updated long-term guidance support a slightly higher assumed future P/E and profit margin, even with a modestly higher discount rate and tempered revenue growth inputs.
MRNA
US$145.13
Moderna
7D
129.2%
1Y
435.1%
ISRG
US$378.81
Intuitive Surgical
7D
-4.0%
1Y
-20.4%
Seeking Alpha • Aug 21

Intuitive Surgical: Stock Price Too High Even For Great Business

Summary Intuitive Surgical remains a high-quality business with a likely wide economic moat, driven by high switching costs and recurring revenue. Despite robust Q2/26 results—18.5% revenue growth and 26.5% EPS growth—ISRG trades at elevated valuation multiples, even after a 36% pullback. Management guides for 13.5–15.5% revenue growth and 68–69% gross margin in 2026, supported by strong market expansion and margin improvement. I rate ISRG a hold, as even optimistic DCF scenarios suggest the stock is at or above intrinsic value. Read the full article on Seeking Alpha
UNH
US$390.11
UnitedHealth Group
7D
-2.9%
1Y
26.9%
AMGN
US$439.33
Amgen
7D
5.8%
1Y
49.6%
Narrative Update • Aug 20

AMGN: IRS And Regulatory Setbacks Will Restrain Pipeline Driven Repricing

Amgen's analyst fair value estimate has moved from about $252.61 to roughly $271.69, reflecting a series of higher Street price targets that analysts link to Q2 earnings strength, an updated revenue and margin outlook, and confidence in the company’s pipeline and recently launched products. Analyst Commentary Street research on Amgen after Q2 clusters around a clear message.
CVS
US$93.02
CVS Health
7D
-4.3%
1Y
30.5%
CI
US$277.51
Cigna Group
7D
-1.8%
1Y
-8.8%
Seeking Alpha • Aug 17

Cigna: I'm Buying What Others Are Ignoring

Summary Cigna Group remains a "Buy," with double-digit adjusted EPS growth intact and shares trading 28% below fair value. CI’s Accredo and AI-powered Pharmacy Forward platforms are key growth drivers, supporting robust revenue and margin expansion through 2028. The company boasts an A- S&P credit rating, strong free cash flow, and a secure, growing dividend with low payout ratios. CI offers mid-teens annual total return potential through 2031, underpinned by consistent earnings beats and disciplined capital allocation. Read the full article on Seeking Alpha
BSX
US$50.37
Boston Scientific
7D
-2.8%
1Y
-52.6%
ALGN
US$162.55
Align Technology
7D
-10.3%
1Y
8.7%