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U.S. Healthcare Sector Analysis

UpdatedSep 15, 2025
DataAggregated Company Financials
Companies1363
  • 7D-0.2%
  • 3M3.7%
  • 1Y-12.4%
  • YTD-0.9%

The Healthcare is pretty flat in the last 7 days, but UnitedHealth Group has stood out, gaining 12%. As for the longer term, the industry has declined 12% in the last year. Earnings are forecast to grow by 15% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 15 Sep 2025US$5.7tUS$3.1tUS$137.6b22.7x41.6x1.9x
Wed, 13 Aug 2025US$5.4tUS$3.1tUS$140.0b23.4x38.5x1.7x
Fri, 11 Jul 2025US$5.6tUS$3.0tUS$127.9b24.4x43.5x1.8x
Sun, 08 Jun 2025US$5.5tUS$3.0tUS$127.2b24x43.2x1.8x
Tue, 06 May 2025US$5.6tUS$2.7tUS$126.0b24.7x44.2x2x
Thu, 03 Apr 2025US$5.5tUS$2.6tUS$81.7b26.5x67.9x2.1x
Sat, 01 Mar 2025US$5.8tUS$2.6tUS$79.3b27.5x73.2x2.2x
Mon, 27 Jan 2025US$6.0tUS$2.9tUS$85.5b27.9x70.7x2.1x
Wed, 25 Dec 2024US$5.8tUS$2.9tUS$78.3b27.4x74.5x2x
Fri, 22 Nov 2024US$6.0tUS$2.9tUS$77.0b27.9x77.6x2x
Sun, 20 Oct 2024US$6.2tUS$2.8tUS$58.8b32.2x106.2x2.2x
Tue, 17 Sep 2024US$6.3tUS$2.8tUS$60.2b30.6x105.1x2.2x
Thu, 15 Aug 2024US$6.1tUS$2.8tUS$55.7b30x109.1x2.2x
Sat, 13 Jul 2024US$6.3tUS$2.8tUS$62.2b31.2x101.1x2.2x
Mon, 10 Jun 2024US$6.2tUS$2.8tUS$63.6b30x97.5x2.2x
Wed, 08 May 2024US$6.1tUS$2.8tUS$64.8b32x94.3x2.2x
Fri, 05 Apr 2024US$6.2tUS$2.8tUS$83.9b32.1x73.6x2.2x
Sun, 03 Mar 2024US$6.3tUS$2.8tUS$85.0b31.2x74.1x2.3x
Tue, 30 Jan 2024US$6.3tUS$2.8tUS$90.7b32x69.8x2.2x
Thu, 28 Dec 2023US$6.2tUS$2.8tUS$91.5b33.1x68x2.2x
Sat, 25 Nov 2023US$5.9tUS$2.8tUS$91.4b28.6x64.4x2.1x
Mon, 23 Oct 2023US$5.7tUS$2.8tUS$99.6b25.6x57.7x2.1x
Wed, 20 Sep 2023US$6.0tUS$2.8tUS$98.6b28.3x60.9x2.2x
Fri, 18 Aug 2023US$6.1tUS$2.8tUS$99.3b28.2x61.9x2.2x
Sun, 16 Jul 2023US$6.0tUS$2.7tUS$110.9b26.3x54x2.2x
Tue, 13 Jun 2023US$6.0tUS$2.7tUS$110.0b25.8x54.4x2.2x
Thu, 11 May 2023US$6.0tUS$2.7tUS$111.8b24.9x54x2.2x
Sat, 08 Apr 2023US$5.9tUS$2.5tUS$121.9b24.2x48.6x2.4x
Mon, 06 Mar 2023US$5.8tUS$2.5tUS$122.5b25.3x47.3x2.3x
Wed, 01 Feb 2023US$6.0tUS$2.5tUS$133.9b23.8x44.5x2.4x
Fri, 30 Dec 2022US$6.0tUS$2.5tUS$135.9b23x44.4x2.5x
Sun, 27 Nov 2022US$6.0tUS$2.4tUS$133.6b24.1x45.1x2.5x
Tue, 25 Oct 2022US$5.7tUS$2.4tUS$156.7b21.6x36.1x2.3x
Thu, 22 Sep 2022US$5.6tUS$2.4tUS$156.1b20.8x35.6x2.3x
Price to Earnings Ratio

35.6x


Total Market Cap: US$5.6tTotal Earnings: US$156.1bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 64.7x202320242025
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 41.6x which is lower than its 3-year average PE of 64.7x.
  • The 3-year average PS ratio of 2.2x is higher than the industry's current PS ratio of 1.9x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have declined 4.1% per year over the last three years.
  • Meanwhile revenues for these companies have grown 8.8% 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 Market1.57%
Healthcare-0.16%
Healthcare Services4.04%
Pharma0.35%
Biotech-0.80%
Medical Equipment-1.95%
Healthtech-2.06%
Life Sciences-2.41%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 57.4x.
    • Analysts expect its future annual earnings growth (12.8%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 25% over the next 5 years.
  • However this is lower than its past earnings growth rate of 69% per year.
  • In contrast, the Healthcare Services industry is expected to see its earnings grow by 12% 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$352.5110.1%
+US$29.2b		-40.2%PE15x
ABBV AbbVieUS$218.344.1%
+US$15.1b		11.6%PE103.6x
LLY Eli LillyUS$755.392.3%
+US$15.0b		-18.2%PE49.1x
CVS CVS HealthUS$74.986.7%
+US$6.0b		28.5%PE21x
ABT Abbott LaboratoriesUS$133.731.2%
+US$2.7b		13.7%PE16.7x

Latest News

ABT
US$133.73
Abbott Laboratories
7D
1.2%
1Y
13.7%

There's No Escaping Abbott Laboratories' (NYSE:ABT) Muted Earnings

Sep 15
There's No Escaping Abbott Laboratories' (NYSE:ABT) Muted Earnings
TMO
US$479.46
Thermo Fisher Scientific
7D
-1.7%
1Y
-21.9%
DHR
US$190.05
Danaher
7D
-4.3%
1Y
-31.1%
ISRG
US$449.68
Intuitive Surgical
7D
-4.3%
1Y
-8.5%
PFE
US$23.87
Pfizer
7D
-2.8%
1Y
-20.6%
CNC
US$33.26
Centene
7D
15.3%
1Y
-56.6%

Centene Corporation's (NYSE:CNC) Price Is Right But Growth Is Lacking After Shares Rocket 30%

Sep 12
Centene Corporation's (NYSE:CNC) Price Is Right But Growth Is Lacking After Shares Rocket 30%
ABBV
US$218.34
AbbVie
7D
4.1%
1Y
11.6%

Expanding Immunology And Neuroscience Will Reshape Global Healthcare

AbbVie's price target was raised to $217.45 as analysts cited the value impact of extended Rinvoq exclusivity from litigation settlement, strong Q2 results, and positive pipeline developments, outweighing near-term Aesthetics headwinds. Analyst Commentary Bullish analysts cite the settlement of litigation regarding generic Rinvoq, extending market exclusivity in the U.S. to 2037 and reducing threats from earlier-than-anticipated generic competition.
MRK
US$82.81
Merck
7D
-1.5%
1Y
-29.8%
UNH
US$352.51
UnitedHealth Group
7D
10.1%
1Y
-40.2%

Medicare Shifts And Digital Tools Will Secure Future Performance

Analysts raised UnitedHealth Group’s price target to $333.42, citing improved earnings visibility from strong Medicare Advantage Star ratings, reaffirmed 2025 guidance, and confidence in multi-year margin recovery, despite ongoing regulatory and DOJ-related risks. Analyst Commentary Bullish analysts raised price targets following UnitedHealth's better-than-expected preliminary 2026 Medicare Advantage Star ratings (78% of members in 4+ Star plans), which provided improved earnings visibility and alleviated investor concerns over regulatory headwinds.
ALNY
US$465.89
Alnylam Pharmaceuticals
7D
2.4%
1Y
72.3%
SYK
US$383.34
Stryker
7D
-2.5%
1Y
3.1%
LLY
US$755.39
Eli Lilly
7D
2.3%
1Y
-18.2%
HUM
US$276.44
Humana
7D
-10.9%
1Y
-12.3%

AI, In-Home Visits, Medicaid And CenterWell Will Improve Care Delivery

Humana’s modestly higher fair value reflects improving investor sentiment, positive management commentary on future plan positioning, raised earnings guidance, and incremental legislative benefits, offset by some caution around interest rates and policy uncertainty, resulting in the consensus analyst price target rising slightly from $293.05 to $294.86. Analyst Commentary Improved investor sentiment and sector group valuations suggest estimates may have bottomed, with upcoming catalysts including government budget deals, Medicare Advantage and ACA pricing, and star ratings for future plans.
BSX
US$102.71
Boston Scientific
7D
-5.0%
1Y
23.0%
CVS
US$74.98
CVS Health
7D
6.7%
1Y
28.5%

Digital Health Transformation And Integrated Care Will Expand Reach

Despite ongoing external risks and policy uncertainty, analysts remain constructive on CVS Health, citing strong recent execution, conservative guidance with potential for upside, and compelling valuation, resulting in the consensus price target holding steady at $81.57. Analyst Commentary Bullish analysts cite strong recent execution and early signs that fixes in the healthcare benefits segment are proving effective, supporting above-consensus earnings growth projections.
MCK
US$711.42
McKesson
7D
2.1%
1Y
36.9%