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U.S. Healthcare Sector Analysis

UpdatedFeb 17, 2026
DataAggregated Company Financials
Companies1385
  • 7D-0.2%
  • 3M2.5%
  • 1Y7.4%
  • YTD-0.3%

Over the last 7 days, the Healthcare industry has dropped 1.1%, driven by a pullback from Thermo Fisher Scientific of 7.7%. On the other hand UnitedHealth Group is actually up 6.3%. This takes the industry's 12 month performance to a gain of 7.4%. Looking forward, earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 17 Feb 2026US$6.5tUS$3.3tUS$128.9b26.2x50.8x2x
Thu, 15 Jan 2026US$6.6tUS$3.2tUS$136.3b27x48.2x2.1x
Sat, 13 Dec 2025US$6.4tUS$3.2tUS$134.0b26.3x47.7x2x
Mon, 10 Nov 2025US$6.0tUS$3.2tUS$133.4b25.5x45x1.9x
Wed, 08 Oct 2025US$6.0tUS$3.1tUS$137.9b24.2x43.6x1.9x
Fri, 05 Sep 2025US$5.7tUS$3.1tUS$137.6b22.8x41.4x1.8x
Sun, 03 Aug 2025US$5.4tUS$3.1tUS$126.7b22.7x42.7x1.8x
Tue, 01 Jul 2025US$5.5tUS$3.0tUS$127.5b24.4x43.1x1.8x
Thu, 29 May 2025US$5.4tUS$3.0tUS$126.9b22.8x42.3x1.8x
Sat, 26 Apr 2025US$5.4tUS$2.7tUS$118.4b24.8x45.6x2x
Mon, 24 Mar 2025US$5.7tUS$2.6tUS$81.8b26.6x69.9x2.2x
Wed, 19 Feb 2025US$5.8tUS$2.6tUS$82.1b26.1x70.8x2.2x
Fri, 17 Jan 2025US$5.9tUS$2.9tUS$78.9b27.5x74.3x2x
Sun, 15 Dec 2024US$5.9tUS$2.9tUS$77.7b28.3x76x2x
Tue, 12 Nov 2024US$6.3tUS$2.9tUS$76.4b28.5x82.3x2.2x
Thu, 10 Oct 2024US$6.2tUS$2.8tUS$60.1b29.7x102.3x2.2x
Sat, 07 Sep 2024US$6.2tUS$2.8tUS$60.4b30.5x102.3x2.2x
Mon, 05 Aug 2024US$6.4tUS$2.9tUS$64.1b31x99.1x2.2x
Wed, 03 Jul 2024US$6.1tUS$2.8tUS$62.3b29.9x98.8x2.2x
Fri, 31 May 2024US$6.0tUS$2.8tUS$64.2b29.8x94.1x2.1x
Sun, 28 Apr 2024US$6.0tUS$2.8tUS$68.3b31.5x87.7x2.1x
Tue, 26 Mar 2024US$6.2tUS$2.8tUS$82.2b31.8x75.9x2.2x
Thu, 22 Feb 2024US$6.2tUS$2.8tUS$86.0b31.3x72.3x2.2x
Sat, 20 Jan 2024US$6.3tUS$2.8tUS$90.8b32.4x69.4x2.2x
Mon, 18 Dec 2023US$6.1tUS$2.8tUS$91.5b32.3x66.5x2.2x
Wed, 15 Nov 2023US$5.7tUS$2.8tUS$90.9b27.8x62.7x2x
Fri, 13 Oct 2023US$5.9tUS$2.8tUS$98.3b25.7x59.9x2.1x
Sun, 10 Sep 2023US$6.1tUS$2.8tUS$98.6b27.5x61.8x2.2x
Tue, 08 Aug 2023US$6.1tUS$2.8tUS$97.9b28.3x62.7x2.2x
Thu, 06 Jul 2023US$6.0tUS$2.7tUS$110.2b26x54.4x2.2x
Sat, 03 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Mon, 01 May 2023US$6.0tUS$2.5tUS$118.4b24.7x50.4x2.4x
Wed, 29 Mar 2023US$5.7tUS$2.5tUS$123.6b23.7x45.8x2.3x
Fri, 24 Feb 2023US$5.8tUS$2.5tUS$123.3b24.3x47.2x2.4x
Price to Earnings Ratio

47.2x


Total Market Cap: US$5.8tTotal Earnings: US$123.3bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.3x202420252026
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 50.8x which is lower than its 3-year average PE of 65.3x.
  • 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 9.8% 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 and as a result, profits have held steady.

Industry Trends

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

US Market-1.93%
Healthcare-0.25%
Healthcare Services3.93%
Pharma0.82%
Biotech-0.57%
Medical Equipment-1.31%
Life Sciences-6.35%
Healthtech-7.07%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry, which is trading close to its 3-year average PE ratio of 56.3x.
    • Analysts are expecting annual earnings growth of 16.4%, which is higher than its past year's earnings growth of 7.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 21% over the next 5 years.
  • However this is lower than its past earnings growth rate of 56% 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
UNH UnitedHealth GroupUS$293.196.3%
+US$15.8b		-44.0%PE22x
ABBV AbbVieUS$231.503.7%
+US$14.6b		20.0%PE96.8x
JNJ Johnson & JohnsonUS$243.452.0%
+US$11.7b		55.9%PE21.9x
MRK MerckUS$121.413.2%
+US$9.3b		46.3%PE16.5x
HCA HCA HealthcareUS$540.298.6%
+US$7.2b		70.9%PE17.8x

Latest News

JNJ
US$243.45
Johnson & Johnson
7D
2.1%
1Y
57.1%
LLY
US$1,040.00
Eli Lilly
7D
1.5%
1Y
21.3%
RMD
US$252.55
ResMed
7D
-8.5%
1Y
8.4%

RMD: AI Sleep Therapy Personalization And Buyback Will Support Long Term Upside

Our updated ResMed narrative reflects a modest lift in the implied analyst price target to about $297.47, with analysts pointing to slightly higher assumed revenue growth, a small improvement in profit margins, and a marginally lower future P/E multiple as key drivers of the change. Analyst Commentary Recent Street research shows a cluster of upward price target revisions for ResMed, with several firms lifting their targets by between $3 and $15.
VRTX
US$491.47
Vertex Pharmaceuticals
7D
6.0%
1Y
6.4%
GILD
US$154.98
Gilead Sciences
7D
5.3%
1Y
47.2%
HCA
US$540.29
HCA Healthcare
7D
7.6%
1Y
70.6%
ZTS
US$126.65
Zoetis
7D
-1.2%
1Y
-19.1%
MEDP
US$428.03
Medpace Holdings
7D
-19.3%
1Y
25.8%

Medpace Holdings, Inc. (NASDAQ:MEDP) Just Reported, And Analysts Assigned A US$491 Price Target

Feb 13
Medpace Holdings, Inc. (NASDAQ:MEDP) Just Reported, And Analysts Assigned A US$491 Price Target
ICLR
US$93.00
ICON
7D
-39.8%
1Y
-50.1%
MRK
US$121.41
Merck
7D
3.6%
1Y
45.8%
DHR
US$212.58
Danaher
7D
-3.3%
1Y
3.9%
ABBV
US$231.50
AbbVie
7D
4.1%
1Y
18.0%

ABBV: Future Returns Will Depend On Immunology Pipeline Clarity And M&A Uncertainty

Analysts have trimmed their price targets for AbbVie by a small amount. This reflects slightly lower revenue growth and P/E assumptions, while also incorporating a modestly higher profit margin and recent mixed research views around competition and pipeline visibility.
ISRG
US$485.84
Intuitive Surgical
7D
-1.9%
1Y
-19.1%

ISRG: Future Procedure And Platform Execution Will Test Premium Multiple Assumptions

Analysts nudged their price targets higher on Intuitive Surgical, with a modest fair value move to about $468 per share. They recalibrated assumptions around slightly lower revenue growth, higher profit margins, and a somewhat lower future P/E multiple, following a mix of recent target hikes and trims across the Street.
IQV
US$166.94
IQVIA Holdings
7D
-13.4%
1Y
-13.7%
TMO
US$504.82
Thermo Fisher Scientific
7D
-6.5%
1Y
-3.5%

TMO: 2026 Tools Upside And AI Partnerships Will Reshape Earnings Power

Analysts have lifted their fair value estimate for Thermo Fisher Scientific from about $662 to roughly $743, citing updated views on discount rates, revenue growth, profit margins, and future P/E assumptions in light of recent price target increases across the Street. Analyst Commentary Street research around Thermo Fisher Scientific has turned more constructive, with a series of higher price targets that align with the updated fair value estimate.
UNH
US$293.19
UnitedHealth Group
7D
7.3%
1Y
-41.4%