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U.S. Healthcare Sector Analysis

UpdatedFeb 04, 2026
DataAggregated Company Financials
Companies1390
  • 7D-1.5%
  • 3M6.1%
  • 1Y4.8%
  • YTD-0.8%

Over the last 7 days, the Healthcare industry has dropped 2.0%, driven by a pullback from Eli Lilly of 3.5%. In the past year, the industry has gained 5.7%. Earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 04 Feb 2026US$6.5tUS$3.2tUS$126.5b26.2x51.6x2x
Fri, 02 Jan 2026US$6.5tUS$3.2tUS$135.6b25.8x47.8x2x
Sun, 30 Nov 2025US$6.5tUS$3.2tUS$133.5b26.5x48.9x2.1x
Tue, 28 Oct 2025US$6.1tUS$3.1tUS$140.4b26.2x43.3x2x
Thu, 25 Sep 2025US$5.7tUS$3.1tUS$137.6b23.6x41.5x1.8x
Sat, 23 Aug 2025US$5.7tUS$3.1tUS$137.2b23.7x41.4x1.8x
Mon, 21 Jul 2025US$5.4tUS$3.0tUS$128.8b22.7x42x1.8x
Wed, 18 Jun 2025US$5.5tUS$3.0tUS$127.4b22.6x43.5x1.8x
Fri, 16 May 2025US$5.2tUS$3.0tUS$125.8b23.2x41.7x1.7x
Sun, 13 Apr 2025US$5.3tUS$2.6tUS$82.2b24.9x64.7x2x
Tue, 11 Mar 2025US$5.8tUS$2.6tUS$78.7b27.4x74x2.2x
Thu, 06 Feb 2025US$5.9tUS$2.6tUS$88.1b27.5x67.1x2.2x
Sat, 04 Jan 2025US$5.8tUS$2.9tUS$79.3b27.3x72.7x2x
Mon, 02 Dec 2024US$6.2tUS$2.9tUS$77.3b28.8x79.8x2.1x
Wed, 30 Oct 2024US$6.1tUS$2.8tUS$66.3b29.5x91.3x2.1x
Fri, 27 Sep 2024US$6.2tUS$2.8tUS$60.0b29.9x103.2x2.2x
Sun, 25 Aug 2024US$6.3tUS$2.8tUS$56.4b31.6x111.1x2.2x
Tue, 23 Jul 2024US$6.3tUS$2.8tUS$60.7b31.9x103.5x2.2x
Thu, 20 Jun 2024US$6.2tUS$2.8tUS$62.5b29.9x98.5x2.2x
Sat, 18 May 2024US$6.2tUS$2.8tUS$64.2b30.5x97x2.2x
Mon, 15 Apr 2024US$6.0tUS$2.8tUS$85.4b31.9x70x2.1x
Wed, 13 Mar 2024US$6.3tUS$2.8tUS$85.3b32.4x73.6x2.3x
Fri, 09 Feb 2024US$6.2tUS$2.8tUS$76.5b31.3x80.6x2.2x
Sun, 07 Jan 2024US$6.3tUS$2.8tUS$90.0b30.9x70.1x2.2x
Tue, 05 Dec 2023US$5.9tUS$2.8tUS$91.4b29.2x65x2.1x
Thu, 02 Nov 2023US$5.6tUS$2.8tUS$93.3b24.6x60x2x
Sat, 30 Sep 2023US$5.9tUS$2.8tUS$98.6b27.6x59.8x2.1x
Mon, 28 Aug 2023US$6.1tUS$2.8tUS$99.0b27.7x61.6x2.2x
Wed, 26 Jul 2023US$6.1tUS$2.7tUS$110.1b27x55.6x2.2x
Fri, 23 Jun 2023US$6.0tUS$2.7tUS$109.8b26.6x54.8x2.2x
Sun, 21 May 2023US$6.0tUS$2.7tUS$110.8b24.2x53.9x2.2x
Tue, 18 Apr 2023US$6.0tUS$2.5tUS$123.6b24.5x48.4x2.4x
Thu, 16 Mar 2023US$5.6tUS$2.5tUS$122.4b24x46x2.3x
Sat, 11 Feb 2023US$5.9tUS$2.5tUS$130.2b23.8x45.6x2.4x
Price to Earnings Ratio

45.6x


Total Market Cap: US$5.9tTotal Earnings: US$130.2bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.2x202420252026
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 51.2x which is lower than its 3-year average PE of 65.2x.
  • 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 9.2% 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-1.35%
Healthcare-1.47%
Healthcare Services1.27%
Pharma0.22%
Biotech-1.38%
Medical Equipment-2.02%
Life Sciences-8.30%
Healthtech-11.95%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry, which is trading close to its 3-year average PE ratio of 56.4x.
    • Analysts are expecting annual earnings growth of 16.5%, which is higher than its past year's earnings growth of 8.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 22% 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 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
JNJ Johnson & JohnsonUS$233.103.9%
+US$20.9b		51.9%PE21x
MRK MerckUS$115.847.3%
+US$19.7b		27.7%PE15.1x
CVS CVS HealthUS$76.836.7%
+US$6.1b		36.3%PE208x
TEVA Teva Pharmaceutical IndustriesUS$36.2511.4%
+US$4.3b		112.5%PE29.5x
ELV Elevance HealthUS$338.654.9%
+US$3.5b		-15.8%PE13.3x

Latest News

LLY
US$1,003.46
Eli Lilly
7D
-3.5%
1Y
21.5%
IQV
US$203.77
IQVIA Holdings
7D
-15.5%
1Y
1.9%
VEEV
US$190.80
Veeva Systems
7D
-12.4%
1Y
-18.2%
MRK
US$115.84
Merck
7D
7.3%
1Y
27.7%
ABBV
US$225.66
AbbVie
7D
0.8%
1Y
18.8%
MDT
US$103.18
Medtronic
7D
2.5%
1Y
13.4%
JNJ
US$233.10
Johnson & Johnson
7D
3.9%
1Y
51.9%
IDXX
US$632.56
IDEXX Laboratories
7D
-9.0%
1Y
36.0%
DHR
US$216.60
Danaher
7D
-8.1%
1Y
0.7%

DHR: Higher Future P/E Assumptions Will Support Premium Multiple Through Soft 2026 Outlook

Analysts have nudged their average price target for Danaher higher, with our fair value estimate moving from US$261.50 to about US$265.23. This change is supported by a modestly higher assumed future P/E multiple and by Street research that has generally lifted targets in the life science tools sector.
AMGN
US$338.59
Amgen
7D
-3.6%
1Y
17.2%

AMGN: Obesity And Cardiovascular Pipeline Will Shape Long-Term Cash Generation

Analysts have nudged their Amgen price targets higher by about $10 to $20, citing a shift toward discounted cash flow analysis, steady execution in legacy products, and increased confidence in the obesity and cardiovascular pipeline. Analyst Commentary Recent research on Amgen highlights a wide range of opinions, but there is a clear cluster of bullish analysts who are leaning into higher price targets and more constructive ratings.
ELV
US$338.65
Elevance Health
7D
4.9%
1Y
-15.8%
TMO
US$570.09
Thermo Fisher Scientific
7D
-8.6%
1Y
-1.8%
TEVA
US$36.25
Teva Pharmaceutical Industries
7D
11.4%
1Y
112.5%
GILD
US$143.28
Gilead Sciences
7D
1.6%
1Y
46.2%
ISRG
US$478.88
Intuitive Surgical
7D
-8.8%
1Y
-17.4%
CVS
US$76.83
CVS Health
7D
6.7%
1Y
36.3%

CVS: Medicare Advantage And Great Healthcare Plan Will Support Earnings Rebound

Analysts have nudged their average price targets for CVS Health higher, with increases such as Bernstein moving to $91 from $87, BofA to $100 from $89, and RBC to $93 from $81. These changes reflect views that recent policy developments and Q3 results support a steadier outlook for government managed care earnings and potential catalysts in Medicare Advantage.