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U.S. Healthcare Sector Analysis

UpdatedMay 21, 2026
DataAggregated Company Financials
Companies1411
  • 7D-0.3%
  • 3M-4.6%
  • 1Y15.3%
  • YTD-4.5%

Over the last 7 days, the Healthcare industry has remained flat, although notably Eli Lilly gained 3.5%. As for the the longer term, the industry is up 15% over the past 12 months. 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
Fri, 22 May 2026US$6.2tUS$3.3tUS$122.5b23.2x51x1.9x
Sun, 19 Apr 2026US$6.4tUS$3.3tUS$121.2b24x52.4x1.9x
Tue, 17 Mar 2026US$6.2tUS$3.3tUS$124.6b24.3x49.9x1.9x
Thu, 12 Feb 2026US$6.5tUS$3.3tUS$127.0b26.7x50.9x2x
Sat, 10 Jan 2026US$6.6tUS$3.2tUS$136.3b26.5x48.7x2.1x
Mon, 08 Dec 2025US$6.4tUS$3.2tUS$133.6b25.9x47.8x2x
Wed, 05 Nov 2025US$6.0tUS$3.2tUS$133.5b25.4x44.8x1.9x
Fri, 03 Oct 2025US$5.9tUS$3.1tUS$137.7b24.6x43.1x1.9x
Sun, 31 Aug 2025US$5.7tUS$3.1tUS$137.5b23.3x41.4x1.8x
Tue, 29 Jul 2025US$5.6tUS$3.1tUS$128.1b24.3x43.8x1.8x
Thu, 26 Jun 2025US$5.5tUS$3.0tUS$127.5b24.4x43x1.8x
Sat, 24 May 2025US$5.3tUS$3.0tUS$126.9b22.8x41.8x1.7x
Mon, 21 Apr 2025US$5.3tUS$2.6tUS$97.6b24.8x54.1x2x
Wed, 19 Mar 2025US$5.7tUS$2.6tUS$75.0b27x76.3x2.2x
Fri, 14 Feb 2025US$5.8tUS$2.6tUS$84.3b26.6x69.3x2.2x
Sun, 12 Jan 2025US$5.8tUS$2.9tUS$78.7b27.6x74.2x2x
Tue, 10 Dec 2024US$6.1tUS$2.9tUS$77.6b28.9x78.2x2.1x
Thu, 07 Nov 2024US$6.2tUS$2.9tUS$74.7b28.7x82.8x2.1x
Sat, 05 Oct 2024US$6.1tUS$2.8tUS$60.0b29.6x102.3x2.2x
Mon, 02 Sep 2024US$6.3tUS$2.8tUS$60.3b32.2x105x2.2x
Wed, 31 Jul 2024US$6.4tUS$2.8tUS$61.2b32x104.3x2.2x
Fri, 28 Jun 2024US$6.2tUS$2.8tUS$62.4b30.5x99.1x2.2x
Sun, 26 May 2024US$6.1tUS$2.8tUS$63.7b30.9x96.5x2.2x
Tue, 23 Apr 2024US$5.9tUS$2.8tUS$84.6b30.2x70x2.1x
Thu, 21 Mar 2024US$6.3tUS$2.8tUS$82.2b32.1x76.2x2.3x
Sat, 17 Feb 2024US$6.2tUS$2.8tUS$82.5b30.7x75.7x2.2x
Mon, 15 Jan 2024US$6.4tUS$2.8tUS$90.8b32.2x70.2x2.3x
Wed, 13 Dec 2023US$6.0tUS$2.8tUS$91.6b30.5x65.7x2.1x
Fri, 10 Nov 2023US$5.8tUS$2.8tUS$86.5b25.8x66.6x2x
Sun, 08 Oct 2023US$5.9tUS$2.8tUS$98.3b26.7x59.7x2.1x
Tue, 05 Sep 2023US$6.1tUS$2.8tUS$98.6b27.4x61.9x2.2x
Thu, 03 Aug 2023US$6.0tUS$2.8tUS$98.3b28.4x61.3x2.2x
Sat, 01 Jul 2023US$6.1tUS$2.7tUS$110.3b26.6x54.9x2.2x
Mon, 29 May 2023US$5.8tUS$2.7tUS$110.5b24.4x52.6x2.1x
Price to Earnings Ratio

52.6x


Total Market Cap: US$5.8tTotal Earnings: US$110.5bTotal 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 51.0x 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 3.5% per year over the last three years.
  • Revenues for these companies have grown 7.0% 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-0.32%
Healthcare-0.29%
Medical Equipment4.03%
Life Sciences1.59%
Healthtech1.12%
Pharma-0.13%
Healthcare Services-2.77%
Biotech-3.01%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 54.6x.
    • Analysts expect its future annual earnings growth (16.1%) 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 26% over the next 5 years.
  • However this is lower than its past earnings growth rate of 43% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 14% 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$1.04k3.5%
+US$31.2b		45.6%PE36.7x
ABBV AbbVieUS$214.501.8%
+US$6.6b		17.5%PE105.4x
DHR DanaherUS$173.335.3%
+US$6.2b		-7.5%PE33.4x
MRK MerckUS$115.882.2%
+US$6.1b		48.9%PE32x
BMY Bristol-Myers SquibbUS$59.554.9%
+US$5.7b		26.6%PE16.7x

Latest News

DXCM
US$71.90
DexCom
7D
24.4%
1Y
-15.2%
Seeking Alpha • 52m

DexCom Might Finally Be Cheap Enough

Summary DexCom is now rated a 'Buy' as improved fundamentals and a 15% lower stock price present a more attractive entry. Q1/26 results showed 15% revenue growth, and 90.9% operating income growth and raised 2026 guidance for both revenue and margins. Key growth drivers include international expansion, increased U.S. coverage for type 2 diabetics, and a $1B share buyback in 2026. With a P/FCF of 20 and intrinsic value estimates up to $115, DXCM appears slightly undervalued with high double-digit growth prospects. Read the full article on Seeking Alpha
LLY
US$1,041.65
Eli Lilly
7D
3.5%
1Y
45.6%
BMY
US$59.55
Bristol-Myers Squibb
7D
4.9%
1Y
26.6%
MRK
US$115.88
Merck
7D
2.2%
1Y
48.9%
UNH
US$382.48
UnitedHealth Group
7D
-4.2%
1Y
28.9%
GILD
US$130.50
Gilead Sciences
7D
-1.2%
1Y
22.3%
Seeking Alpha • 13h

Why Gilead Sciences Is Now A Hold (Rating Upgrade)

Summary Gilead Sciences, Inc. once again demonstrated strong performance of Trodelvy, Livdelzi, and Yeztugo. This "trio" generated $701 million in revenue for Gilead in Q1, up 110.5% quarter-on-quarter. However, Gilead's cell therapy franchise is once again struggling, with sales of Yescarta and Tecartus falling 12.3% YoY. Moreover, I still believe that GILD's acquisition of anito-cel was a mistake, given that J&J/Legend's Carvykti is becoming the "gold standard" for the treatment of R/R multiple myeloma. Further in this article, you'll learn why, in my view, GILD's risk/reward has become balanced. Read the full article on Seeking Alpha
BSX
US$57.15
Boston Scientific
7D
6.7%
1Y
-45.3%
CVS
US$93.32
CVS Health
7D
-3.9%
1Y
55.0%
VRTX
US$433.54
Vertex Pharmaceuticals
7D
-3.7%
1Y
-0.1%
Narrative Update • May 19

VRTX: CF Franchise And Nephrology Pipeline Will Shape Balanced Future Risk Profile

Analysts have inched their fair value target for Vertex Pharmaceuticals higher to about $414 per share. This reflects updated assumptions that pair slightly more conservative revenue growth expectations with higher projected profit margins and a lower anticipated future P/E multiple.
DHR
US$173.33
Danaher
7D
5.3%
1Y
-7.5%
Narrative Update • May 19

DHR: Bioprocess Recovery And Masimo Deal Set To Support Premium Multiple

Analysts have trimmed the implied fair value for Danaher by about $2 to roughly $248 per share, as they balance slightly higher long term growth and margin expectations with a lower assumed P/E multiple, evolving views on bioprocess recovery, and recent price target changes across the Street. Analyst Commentary Recent Street commentary around Danaher reflects a mixed but engaged view, with several firms adjusting price targets and reassessing how quickly the company can execute on its bioprocess ambitions and broader portfolio moves.
ABBV
US$214.50
AbbVie
7D
1.8%
1Y
17.5%
ABT
US$87.77
Abbott Laboratories
7D
3.4%
1Y
-33.3%
REGN
US$642.59
Regeneron Pharmaceuticals
7D
-9.9%
1Y
7.7%
Seeking Alpha • May 18

Regeneron: Time To Forget Fianlimab (Rating Upgrade)

Summary Regeneron faced a setback after fianlimab and Libtayo failed in a phase 3 trial in first-line metastatic melanoma. These results have negative read-through to other fianlimab-based trials in melanoma. I see Regeneron as a strong buy after the pullback, as fianlimab-based combinations were not critical for long-term value creation. Return to stronger growth, expanding and maturing pipeline, and a strong balance sheet position the company well for success. Key risks include further Eylea franchise weakness and potential new clinical disappointments. Read the full article on Seeking Alpha
CI
US$282.02
Cigna Group
7D
-4.4%
1Y
-9.8%
Seeking Alpha • May 18

Cigna: Shares Marching To Full Recovery

Summary Cigna Group is reiterated as a "Buy," driven by strong Q1 2026 results, raised guidance, and sustained business momentum. CI’s pharmacy and behavioral health segments are fueling revenue growth, while divestitures and PBM reform temporarily temper 2026 earnings. Shares trade at a 25% discount to a $377 fair value estimate, offering potential 15% annual total returns through 2031. Cigna’s robust balance sheet, market-leading dividend coverage, and growth catalysts in biosimilars and behavioral health underpin the investment thesis. Read the full article on Seeking Alpha
HCA
US$392.56
HCA Healthcare
7D
-9.3%
1Y
4.2%
THC
US$178.00
Tenet Healthcare
7D
-10.4%
1Y
10.3%
Narrative Update • May 10

THC: Buybacks And Higher Acuity Demand Will Offset Cautious 2026 Margin Expectations

Tenet Healthcare's updated analyst price target has moved from $228.45 to $210.00 as analysts factor in a slightly higher discount rate, modestly adjusted revenue and margin assumptions, and lower future P/E expectations following a series of recent target cuts across the Street. Analyst Commentary Recent Street research around Tenet Healthcare reflects a clear shift toward more cautious positioning, with several bearish analysts trimming price targets and reassessing assumptions for valuation and execution risk.