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U.S. Healthcare Sector Analysis

UpdatedSep 28, 2022
DataAggregated Company Financials
Companies1553
  • 7D-3.5%
  • 3M-5.5%
  • 1Y-17.1%
  • YTD-19.5%

Over the last 7 days, the Healthcare industry has dropped 3.5%, driven by a pullback from UnitedHealth Group of 2.8%. Overall the industry is down 17% in 12 months. As for the next few years, earnings are expected to grow by 13% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 28 Sep 2022US$5.5tUS$2.4tUS$155.8b20.5x35.1x2.3x
Fri, 26 Aug 2022US$5.9tUS$2.4tUS$157.1b23.5x37.7x2.5x
Sun, 24 Jul 2022US$5.9tUS$2.6tUS$164.7b24.9x35.9x2.3x
Tue, 21 Jun 2022US$5.4tUS$2.6tUS$165.4b23.1x32.6x2.1x
Thu, 19 May 2022US$5.9tUS$2.6tUS$165.0b25.3x35.5x2.3x
Sat, 16 Apr 2022US$6.5tUS$2.5tUS$175.7b29x37x2.6x
Mon, 14 Mar 2022US$6.1tUS$2.5tUS$170.7b27.4x35.6x2.5x
Wed, 09 Feb 2022US$6.3tUS$2.4tUS$161.6b30x39.2x2.6x
Fri, 07 Jan 2022US$6.6tUS$2.4tUS$145.5b31.3x45.1x2.7x
Sun, 05 Dec 2021US$6.5tUS$2.4tUS$146.5b30x44.2x2.7x
Tue, 02 Nov 2021US$7.0tUS$2.3tUS$132.1b34.2x52.6x3x
Thu, 30 Sep 2021US$6.7tUS$2.3tUS$120.0b35x55.6x2.9x
Sat, 28 Aug 2021US$6.9tUS$2.3tUS$121.1b33x57x3x
Sun, 04 Jul 2021US$6.6tUS$2.3tUS$113.6b32.4x57.7x2.9x
Wed, 07 Apr 2021US$6.0tUS$2.4tUS$93.5b29x64.1x2.5x
Sat, 09 Jan 2021US$5.8tUS$2.3tUS$87.0b29.3x66.5x2.5x
Fri, 02 Oct 2020US$5.1tUS$2.3tUS$104.6b28.7x49.1x2.3x
Mon, 06 Jul 2020US$4.8tUS$2.4tUS$101.2b31.4x47.4x2x
Thu, 09 Apr 2020US$3.9tUS$2.4tUS$99.2b28.8x39x1.6x
Wed, 01 Jan 2020US$4.5tUS$2.3tUS$100.0b29.1x44.5x1.9x
Sat, 05 Oct 2019US$3.8tUS$2.3tUS$84.2b26.2x45.7x1.7x
Price to Earnings Ratio

45.7x


Total Market Cap: US$3.8tTotal Earnings: US$84.2bTotal Revenue: US$2.3tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 48.4x202020212022
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 35.1x which is lower than its 3-year average PE of 48.4x.
  • The industry is trading close to its 3-year average PS ratio of 2.3x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have grown 23% per year over the last three years.
  • Revenues for these companies have grown 2.1% 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-5.79%
Healthcare-3.49%
Pharma-0.35%
Biotech-3.35%
Healthcare Services-3.95%
Healthtech-4.20%
Life Sciences-5.30%
Medical Equipment-6.38%
Industry PE
  • Investors are most optimistic about the Biotech industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 12.2%, which is lower than the prior year's growth of 29.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Healthtech industry, expecting annual earnings growth of 42% over the next 5 years.
  • This is better than its past earnings growth rate of 2.8% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 9.9% 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$311.103.1%
+US$8.9b
40.4%PE51.9x
BMY Bristol-Myers SquibbUS$70.360.9%
+US$1.3b
17.6%PE22.7x
CANO Cano HealthUS$8.6936.9%
+US$542.7m
-36.2%PS0.8x
SAVA Cassava SciencesUS$46.1818.7%
+US$291.5m
-28.9%PB8.5x
MRVI Maravai LifeSciences HoldingsUS$25.108.0%
+US$244.7m
-46.9%PE13.3x
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Latest News

MDT

US$80.89

Medtronic

7D

-8.6%

1Y

-35.8%

DHR

US$260.10

Danaher

7D

-5.2%

1Y

-14.4%

SYK

US$202.68

Stryker

7D

-7.0%

1Y

-24.3%
Sep 21

Cassava Sciences: Trying To Manage Expectations

Summary The second group of patients on simufilam on average experienced a .2 point decline in ADAS-Cog scores after one year. These results are similar to acetylcholinesterase inhibitors for mild Alzheimer's disease. Critics claim that some individuals in the first group who experienced a mean improvement of 3.2 did not have Alzheimer's, whereas supporters claim this is true for the second group. Accurate MMSE numbers for both groups would add more clarity to the situation. The apparent mechanisms of action for simufilam suggest that further decline from baseline is likely. An explanation is needed as to why the first group of fifty trial participants on Cassava Sciences' (SAVA) simufilam experienced a 3.2 improvement in ADAS-Cog scores while the second group experienced a .2 point decline. Critics have asserted that at least some of those in the first group did not have Alzheimer's disease. Cassava Sciences advocates apparently taking their cue from the company now have tried to flip the script by arguing that some in the second group did not have Alzheimer's disease but instead had some other form of dementia or mixed dementia, such as Alzheimer's disease and vascular dementia. That is why they did not perform as well. It is impossible to resolve this controversy with the data at hand, but there are clues to a possible answer. According to Cassava Sciences, the first group had a mean ADAS-cog score of 15.5 and a mean MMSE score of 22.1, but a mean ADAS-cog score of 15.5 corresponds to a mean MMSE score of 25.5 (table one). An MMSE score of between 21 and 24 is usually indicative of mild Alzheimer's disease. Some of those with higher MMSE scores in the first group may have been allowed into the trial based on being amyloid positive. But being amyloid positive is not the same thing as having Alzheimer's disease. Individuals with strong antioxidant levels in their brain can have significant amounts of amyloid and not have Alzheimer's disease (study). It is likely, then, that some people in the first group had mild cognitive impairment, very early Alzheimer's disease, or were cognitively normal. The results from the second group of 50 patients are even more difficult to interpret because there is no public record of their baseline scores and characteristics: MMSE scores, ADAS-cog scores, age, gender, ethnicity, APOE4 status, etc. Nothing. The contention made by some of the company's backers is that some individuals in this group did not go under intensive testing to determine if they had Alzheimer's disease. If that is the case, then some participants were admitted into the trial based solely on their MMSE scores. Just like amyloid, MMSE scores alone cannot be used to provide a definitive diagnosis of Alzheimer's disease. So it is possible that a few of these individuals had either some other form of dementia or mixed dementia. But even if this is the case, treatments that lessen oxidative stress in Alzheimer's disease are likely to have at least some benefits in terms of cognition for those with other forms of dementia (possibility). Knowing the actual MMSE scores of the trial participants in both groups would not completely resolve this debate, but it would go a long way in that direction. If there is a significant gap in terms of baseline MMSE scores between the two groups, this would strongly indicate (but not prove) that more people in the second group had mild Alzheimer's disease than in the first group. If the .2 point decline is reflective of the effects of simufilam for mild Alzheimer's disease, this would put it right in line with acetylcholinesterase inhibitors for mild Alzheimer's disease (chart). And this may be no accident. Acetylcholinesterase inhibitors such as Aricept inhibit oxidative stress as sigma-1 agonists and are peroxynitrite decomposition catalysts (a nitro-oxidant that probably plays a key role in Alzheimer's disease). Simufilam potentially at least can do the same (previous article). About 20 percent of the population does not have a functioning sigma-1 receptor, so they do not benefit from this form of treatment. Sigma-1 receptor activity declines with the progression of Alzheimer's disease, so this type of treatment does not work nearly as well for moderate Alzheimer's disease as it does for mild Alzheimer's disease. This may explain why some participants responded better to simufilam than others. Not only the results but probably the mechanism of action of simufilam is in need of adjustment. Cassava Sciences has always presented itself outside the realm of various other anti-amyloid treatments, but it too is an amyloid-centric approach. The company's stated mechanism of action is that by restoring filamin A to its normal configuration, it reduces amyloid toxicity by "disabling its signalling" via nicotinic acetylcholine and toll-like receptors (publication). Yet, in trials where nearly all amyloid was removed, Alzheimer's disease continues to progress. It does not take a very small amount of amyloid to contribute to Alzheimer's disease, it requires a lot (such as the case with APOE4 carriers). In non-APOE4 carriers who have less amyloid, anti-amyloid drugs don't work at all (latest example from Eli Lilly). It is possible that simufilam produces beneficial results even in the absence of amyloid. For instance, simufilam may be a zinc and copper chelator, which may be of some significance in that zinc and copper contribute to the misfolding of proteins as well as to their toxicity. If this is the case, then it is the presence of copper and zinc and not any particular misfolded protein that can at least early on contribute to the progression of Alzheimer's disease. Eventually, though, copper and zinc are entombed in amyloid plaques, so their role in Alzheimer's disease declines. It is possible, though, that a small part of simufilam's early benefit is as a copper and zinc chelator. The role of misfolded proteins by themselves in Alzheimer's disease is somewhat uncertain. Misfolded amyloid by itself probably does no damage to the brain. Misfolded tau proteins can inhibit neurotransmissions. It is unclear at this point if misfolded filamin A proteins do any damage to the brain or not.

INBX

US$16.09

Inhibrx

7D

21.5%

1Y

-53.6%