Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Healthcare Sector Analysis

UpdatedJul 12, 2026
DataAggregated Company Financials
Companies1407
  • 7D-1.5%
  • 3M10.0%
  • 1Y22.0%
  • YTD5.2%

Over the last 7 days, the Healthcare industry has dropped 1.5%, driven by declines in AbbVie and Eli Lilly of 5.0% and 2.1%, respectively. In contrast, Crinetics Pharmaceuticals has gained 98%. Over the past 12 months, the industry was up 22%. Looking forward, earnings are forecast to grow by 18% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 12 Jul 2026US$6.9tUS$3.3tUS$122.0b25x56.6x2.1x
Tue, 09 Jun 2026US$6.4tUS$3.3tUS$122.7b22.9x52.4x1.9x
Thu, 07 May 2026US$6.2tUS$3.3tUS$119.2b23.4x52.1x1.9x
Sat, 04 Apr 2026US$6.2tUS$3.3tUS$128.2b22.5x48.3x1.9x
Mon, 02 Mar 2026US$6.7tUS$3.3tUS$127.6b25.5x52.2x2x
Wed, 28 Jan 2026US$6.6tUS$3.2tUS$130.7b28x50.9x2.1x
Fri, 26 Dec 2025US$6.6tUS$3.2tUS$135.2b26.4x48.5x2.1x
Sun, 23 Nov 2025US$6.3tUS$3.2tUS$133.7b25.8x47.5x2x
Tue, 21 Oct 2025US$6.0tUS$3.1tUS$140.2b25.5x43.1x2x
Thu, 18 Sep 2025US$5.7tUS$3.1tUS$137.5b23.7x41.3x1.8x
Sat, 16 Aug 2025US$5.6tUS$3.1tUS$137.1b23.1x40.6x1.8x
Mon, 14 Jul 2025US$5.5tUS$3.0tUS$127.9b24x43.3x1.8x
Wed, 11 Jun 2025US$5.5tUS$3.0tUS$127.2b24.1x43.2x1.8x
Fri, 09 May 2025US$5.5tUS$3.0tUS$128.7b24.5x42.5x1.8x
Sun, 06 Apr 2025US$5.2tUS$2.6tUS$82.2b24.7x63.5x2x
Tue, 04 Mar 2025US$5.9tUS$2.6tUS$79.5b27.7x73.8x2.2x
Thu, 30 Jan 2025US$6.1tUS$2.9tUS$84.4b27.8x72.7x2.1x
Sat, 28 Dec 2024US$5.9tUS$2.9tUS$78.3b26.8x74.9x2x
Mon, 25 Nov 2024US$6.0tUS$2.9tUS$77.3b28.2x78.1x2.1x
Wed, 23 Oct 2024US$6.2tUS$2.8tUS$58.4b31.9x105.6x2.2x
Fri, 20 Sep 2024US$6.3tUS$2.8tUS$60.1b30.6x104.5x2.2x
Sun, 18 Aug 2024US$6.2tUS$2.8tUS$56.0b32.8x109.8x2.2x
Tue, 16 Jul 2024US$6.3tUS$2.8tUS$62.2b31.2x101.7x2.2x
Thu, 13 Jun 2024US$6.2tUS$2.8tUS$62.4b29.7x99.6x2.2x
Sat, 11 May 2024US$6.1tUS$2.8tUS$63.9b30.7x95.8x2.2x
Mon, 08 Apr 2024US$6.2tUS$2.8tUS$84.1b32.4x73.2x2.2x
Wed, 06 Mar 2024US$6.3tUS$2.8tUS$85.0b31.4x74x2.3x
Fri, 02 Feb 2024US$6.4tUS$2.8tUS$78.3b32.3x82.3x2.3x
Sun, 31 Dec 2023US$6.2tUS$2.8tUS$91.5b32.8x68.1x2.2x
Tue, 28 Nov 2023US$5.9tUS$2.8tUS$91.4b28x64.4x2.1x
Thu, 26 Oct 2023US$5.7tUS$2.8tUS$98.9b24.6x57.4x2x
Sat, 23 Sep 2023US$5.9tUS$2.8tUS$98.6b27.7x60x2.1x
Mon, 21 Aug 2023US$6.1tUS$2.8tUS$99.2b28x61.4x2.2x
Wed, 19 Jul 2023US$6.0tUS$2.7tUS$110.9b26.3x54.1x2.2x
Price to Earnings Ratio

54.1x


Total Market Cap: US$6.0tTotal Earnings: US$110.9bTotal Revenue: US$2.7tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.5x202420252026
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 56.6x which is lower than its 3-year average PE 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 3.2% 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 Market0.81%
Healthcare-1.49%
Life Sciences0.27%
Healthcare Services-0.36%
Medical Equipment-1.32%
Healthtech-1.48%
Pharma-2.04%
Biotech-2.29%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 56.0x.
    • Analysts are expecting annual earnings growth of 16.9%, which is higher than its past year's earnings growth of 5.2% per year.
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 55% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 15% 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
CRNX Crinetics PharmaceuticalsUS$83.5897.9%
+US$4.4b		161.8%PS487.7x
MCK McKessonUS$805.962.5%
+US$2.3b		13.6%PE19.8x
BBIO BridgeBio PharmaUS$85.8911.3%
+US$1.7b		84.8%PS29x
CI Cigna GroupUS$293.462.0%
+US$1.5b		-3.2%PE12.3x
DXCM DexComUS$74.965.2%
+US$1.4b		-10.1%PE31.1x

Latest News

ISRG
US$406.78
Intuitive Surgical
7D
-4.5%
1Y
-20.6%
ABBV
US$248.08
AbbVie
7D
-5.0%
1Y
28.9%
JNJ
US$256.98
Johnson & Johnson
7D
-2.3%
1Y
63.8%
DXCM
US$74.96
DexCom
7D
5.2%
1Y
-10.1%
Narrative Update • Jul 11

DXCM: CONNECT Data In Type 2 Non Insulin Users Will Drive Upside

The analyst price target for DexCom has edged up by about $1.80 to reflect slightly higher fair value estimates and modestly stronger assumptions on future profitability and P/E support, with analysts pointing to fresh Buy initiations, raised targets tied to the CONNECT data in Type 2 non insulin users, and easing concerns around the continuous glucose monitoring market as key drivers of the update. Analyst Commentary Recent research coverage on DexCom reflects a mix of optimism around growth opportunities in Type 2 non insulin users and the broader continuous glucose monitoring market, balanced against more cautious takes on valuation, growth targets, and peer comparisons.
BBIO
US$85.89
BridgeBio Pharma
7D
11.3%
1Y
84.8%
Narrative Update • Jul 11

BBIO: Cardiomyopathy Launch And Rare Disease Filings Will Shape Next Phase

The analyst fair value estimate for BridgeBio Pharma has been raised from $76.00 to $80.00, reflecting updated Street price targets around $96 to $104 and analyst views that recent regulatory progress and ongoing launch execution support slightly higher projected growth, margins, and future P/E. Analyst Commentary Recent research on BridgeBio Pharma shows a mix of optimism around its rare disease portfolio and a more cautious stance from some bearish analysts who are focused on execution and valuation risks.
MRK
US$123.54
Merck
7D
-4.6%
1Y
48.2%
LLY
US$1,188.58
Eli Lilly
7D
-2.1%
1Y
49.9%
Narrative Update • Jul 10

LLY: GLP-1 Franchise And Retatrutide Data Will Support Balanced Future Outlook

Analysts have nudged their price targets on Eli Lilly higher, with fair value estimates moving from about $1,218.72 to roughly $1,243.43 as they point to resilient GLP-1 obesity and diabetes franchises, along with supportive recent data and previews around Zepbound, Mounjaro, Foundayo and retatrutide. Analyst Commentary Recent research updates on Eli Lilly show a cluster of higher price targets around the GLP-1 obesity and diabetes portfolio, with Zepbound, Mounjaro, Foundayo and retatrutide at the center of the discussion.
CRNX
US$83.58
Crinetics Pharmaceuticals
7D
97.9%
1Y
161.8%
Narrative Update • Jul 10

CRNX: Takeover Offer And Delayed Rival Entry Will Shape Endocrine Outlook

Crinetics Pharmaceuticals' analyst fair value estimate has been trimmed from $97 to $90 as analysts recalibrate expectations around the $85 per share cash acquisition by Vertex Pharmaceuticals and the cluster of rating downgrades to Hold or Neutral that now anchor views closer to the agreed deal price. Analyst Commentary Analysts covering Crinetics Pharmaceuticals are now largely treating the stock as a merger arbitrage situation, with ratings concentrated around Hold or Neutral and price targets aligning closely with the agreed US$85 per share cash offer from Vertex Pharmaceuticals.
MRNA
US$68.27
Moderna
7D
-14.4%
1Y
102.9%
AMGN
US$363.39
Amgen
7D
-2.9%
1Y
23.1%
Narrative Update • Jul 10

AMGN: IRS Dispute And Regulatory Setbacks Will Pressure Future Returns

Amgen's updated analyst price target now reflects a fair value estimate of $252.61. Analysts point to refined revenue and margin assumptions, a slightly higher discount rate, and sector-level research that highlights both supportive biotech conditions and company-specific model updates following recent earnings and regulatory disclosures.
TMO
US$527.05
Thermo Fisher Scientific
7D
0.7%
1Y
21.2%
Narrative Update • Jul 09

TMO: AI Tools And Biopharma Collaborations Will Drive Future Performance

Thermo Fisher Scientific's analyst price target has been trimmed slightly, with the fair value estimate moving from $611.56 to about $590.77 as analysts factor in a modestly higher discount rate and slightly softer long term revenue growth and margin assumptions, alongside a mix of cautious sector views and continued confidence in the company's role across life science tools and diagnostics. Analyst Commentary Recent research on Thermo Fisher Scientific shows a mix of optimism and caution, with several firms updating price targets, ratings, and sector views as they reassess growth drivers, capital spending trends, and long term organic growth expectations.
VRTX
US$485.39
Vertex Pharmaceuticals
7D
-8.1%
1Y
3.5%
Narrative Update • Jul 08

VRTX: Rich Crinetics Deal Will Weigh On Future Risk Reward Profile

Vertex Pharmaceuticals' fair value estimate has been adjusted higher by about $9.69 to $423.75 as analysts factor in updated assumptions on revenue growth, margins, and future P/E following the Crinetics acquisition and a series of upward price target revisions, including recent moves to $570 at RBC Capital and $350 at Baird. Analyst Commentary Recent research on Vertex Pharmaceuticals clusters around the planned Crinetics acquisition and how it reshapes the company’s pipeline mix, capital deployment, and earnings profile.
MCK
US$805.96
McKesson
7D
2.5%
1Y
13.6%
Seeking Alpha • Jul 08

McKesson Checks All The Boxes To Survive And Prosper In A Weak Economy, But There's A Big Catch

Summary McKesson is highlighted as a stable portfolio holding with regular moderate growth amid a challenging, overvalued market environment. A major correction could impact MCK alongside the broader market. Despite broad market risks, I seek to maximize results by selectively holding resilient stocks like MCK. Strategic positioning may limit damage in a bear market, and this article uses MCK as a case study for navigating potential downturns. Most future articles on individual stocks may need to consider the potential impact of AI on the stock and its industry. Companies that are "middlemen" in a "distributor" business like MCK may be particularly vulnerable to competition from agentic AI, which is faster, cheaper, and equally effective. Read the full article on Seeking Alpha
SYK
US$329.78
Stryker
7D
1.0%
1Y
-15.3%
Seeking Alpha • Jul 08

Stryker: Medtech On Sale, Benefiting From Industry Growth

Summary Stryker Corporation offers a compelling medtech investment, benefiting from robust industry growth and an innovation-led strategy. SYK trades at a 13% discount to fair value, with a forward P/E of 20.1 versus a 10-year average of 25.6. Consensus expects SYK’s adjusted diluted EPS to compound at 11.2% annually through 2028, supporting high single-digit dividend growth. Key risks include cybersecurity vulnerabilities and fierce competition, but SYK’s diversified portfolio and disciplined capital allocation underpin its long-term outlook. Read the full article on Seeking Alpha
COR
US$303.44
Cencora
7D
2.3%
1Y
2.8%
Narrative Update • Jul 08

COR: Insider Buying And Fair Value View Will Shape Upcoming Share Performance

Analysts have nudged their price target for Cencora higher from $280.00 to about $288.21, reflecting updated assumptions around fair value, discount rate, revenue growth, profit margins, and future price-to-earnings (P/E) expectations. What’s in the News for Cencora Cencora stock moved 3.6% higher on June 23, 2026, alongside commentary that the shares are viewed as modestly undervalued relative to one intrinsic value estimate and supported by what sources describe as solid business fundamentals.
CI
US$293.46
Cigna Group
7D
2.0%
1Y
-3.2%