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U.S. Healthcare Sector Analysis

UpdatedMar 22, 2026
DataAggregated Company Financials
Companies1387
  • 7D-2.3%
  • 3M-7.9%
  • 1Y1.0%
  • YTD-7.4%

Over the last 7 days, the Healthcare industry has dropped 2.3%, driven by a pullback from Eli Lilly of 8.0%. As for the longer term, the industry's performance has been flat for the past year. 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
Sun, 22 Mar 2026US$6.1tUS$3.3tUS$124.7b22.3x48.7x1.9x
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
Price to Earnings Ratio

45.8x


Total Market Cap: US$5.7tTotal Earnings: US$123.6bTotal Revenue: US$2.5tTotal 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 48.7x which is lower than its 3-year average PE of 65.5x.
  • The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.9x.
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 9.9% 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-1.83%
Healthcare-2.32%
Healthtech2.04%
Life Sciences1.24%
Medical Equipment-0.32%
Biotech-2.74%
Healthcare Services-2.91%
Pharma-3.89%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 55.9x.
    • Analysts are expecting annual earnings growth of 15.9%, which is higher than its past year's earnings growth of 6.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 23% over the next 5 years.
  • However this is lower than its past earnings growth rate of 40% 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
TMO Thermo Fisher ScientificUS$474.392.2%
+US$3.7b		-8.4%PE26.3x
PFE PfizerUS$26.971.5%
+US$2.2b		2.6%PE19.8x
ISRG Intuitive SurgicalUS$477.971.2%
+US$2.1b		-2.9%PE59.4x
RGC Regencell Bioscience HoldingsUS$27.3717.8%
+US$2.0b		1,673.9%PB2784.6x
DHR DanaherUS$189.351.1%
+US$1.4b		-10.4%PE37.2x

Latest News

GILD
US$137.21
Gilead Sciences
7D
-5.4%
1Y
28.1%
CVS
US$71.48
CVS Health
7D
-6.1%
1Y
6.6%
DHR
US$189.35
Danaher
7D
1.1%
1Y
-10.4%
WAT
US$298.99
Waters
7D
4.3%
1Y
-18.2%

WAT: New Four Division Model Will Support Higher Long Term Profitability

Analysts have kept their price target for Waters steady at $398.05. This reflects updated views on a slightly lower discount rate, modestly adjusted revenue growth expectations, a higher projected profit margin, and a reduced future P/E assumption.
TMO
US$474.39
Thermo Fisher Scientific
7D
2.2%
1Y
-8.4%

TMO: 2026 Tools Demand And Recovering End Markets Will Drive Performance

Narrative Update The updated analyst price target for Thermo Fisher Scientific reflects a higher fair value estimate of about $664, with analysts citing modestly stronger revenue growth assumptions, a slightly higher discount rate, and a similar forward P/E outlook despite a lower projected profit margin. Analyst Commentary Recent Street commentary around Thermo Fisher Scientific has been generally constructive, with several firms lifting price targets and pointing to a more supportive backdrop for life science tools into 2026.
PFE
US$26.97
Pfizer
7D
1.5%
1Y
2.6%
LLY
US$906.70
Eli Lilly
7D
-8.0%
1Y
8.3%
JNJ
US$235.37
Johnson & Johnson
7D
-2.5%
1Y
43.8%

Oncology Reliance And MedTech Execution Will Threaten Long Term Earnings Stability

Catalysts About Johnson & Johnson Johnson & Johnson is a global health care company focused on pharmaceuticals and medical technology across Oncology, Immunology, Neuroscience, Cardiovascular, Surgery and Vision. What are the underlying business or industry changes driving this perspective?
AMGN
US$347.80
Amgen
7D
-5.0%
1Y
10.0%

AMGN: Fair Outlook Balances Patent Expiries With Late Stage Pipeline Potential

The Analyst Price Target for Amgen has been updated from $327.74 to $350.03 as analysts factor in recent price target increases tied to stronger near term commercial execution, added value from key Phase 3 pipeline assets, and a shift toward discounted cash flow based models that emphasize improved margin assumptions and a slightly lower discount rate. Analyst Commentary Recent Street commentary around Amgen reflects a mix of optimism about the current execution and pipeline, alongside ongoing debate about valuation, product risks, and long term earnings durability.
NTRA
US$195.28
Natera
7D
4.0%
1Y
29.2%
ISRG
US$477.97
Intuitive Surgical
7D
1.2%
1Y
-2.9%
HCA
US$493.88
HCA Healthcare
7D
-7.3%
1Y
50.2%
MCK
US$885.84
McKesson
7D
-5.9%
1Y
34.0%

MCK: Biosimilar Optionality And Premium Safe Haven Position Will Shape Future Returns

Analysts have increased their McKesson price target from $980.40 to $995.27, citing higher Street targets that reflect new biosimilar optionality and continued interest in the stock as a perceived healthcare safe haven, even at a premium valuation. Analyst Commentary Bullish analysts are leaning into McKesson's role as a perceived healthcare safe haven and the new biosimilar angle, using these themes to justify higher valuation levels than the recent three year average.
ABBV
US$205.07
AbbVie
7D
-6.7%
1Y
-2.4%

ABBV: Future Returns Will Depend On Immunology Encore And Deal Optionality Uncertainty

The analyst price target for AbbVie edges higher to align with our fair value shift from $248.29 to $248.86, as analysts highlight ongoing indication expansion in immunology, potential operating leverage, and multiple expansion drivers, even as some firms note emerging competition and a more balanced risk and reward profile. Analyst Commentary Recent research on AbbVie reflects a split view, with some analysts pointing to upside tied to immunology growth and pipeline execution, while others flag competition risk and a more balanced risk and reward profile at current levels.
DXCM
US$66.95
DexCom
7D
4.2%
1Y
-9.3%

DXCM: AI Coaching And Share Repurchases Will Support Long-Term Confidence

DexCom's intrinsic value estimate nudged higher to $85.85, with analysts modestly lifting price targets, often in the $1 to $12 range, as they weigh recent target increases against a Barclays downgrade that highlights rising competitive pressure in continuous glucose monitoring. Analyst Commentary Recent research on DexCom reflects a split tape, with several firms adjusting price targets higher by amounts in the low single digits to low teens, while one major firm has moved to a more cautious stance with a lower target and an Underweight rating.
RGC
US$27.37
Regencell Bioscience Holdings
7D
17.8%
1Y
1,673.9%

Regencell Bioscience Holdings Ltd. (RGC) The TCM Biotech Lottery Ticket: High Hopes and Extreme Volatility

If you're looking for a stock that perfectly embodies the wild, speculative side of the market for your viewers, Regencell Bioscience (RGC) is it. As of late February 2026, this Hong Kong-headquartered, early-stage bioscience company is trading around $29.17 , following a period of mind-bending volatility where the stock surged thousands of percent over the past year.