Medtronic (NYSE:MDT) Has More To Do To Multiply In Value Going Forward
Feb 17
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U.S. Healthcare Sector Analysis
UpdatedFeb 17, 2025
DataAggregated Company Financials
Companies1404
- 7D-1.0%
- 3M1.8%
- 1Y-1.4%
- YTD4.3%
Over the last 7 days, the Healthcare industry has dropped 1.0%, driven by a pullback from Eli Lilly of 2.8%. In contrast, CVS Health has gained 21%. As for the longer term, the industry's performance has been flat for the past year. 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?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 17 Feb 2025 | US$5.8t | US$2.6t | US$82.1b | 26.7x | 70.8x | 2.2x |
| Wed, 15 Jan 2025 | US$5.8t | US$2.9t | US$78.9b | 28.1x | 73.9x | 2x |
| Fri, 13 Dec 2024 | US$6.0t | US$2.9t | US$77.6b | 28.6x | 77x | 2x |
| Sun, 10 Nov 2024 | US$6.3t | US$2.9t | US$76.0b | 28.3x | 82.8x | 2.2x |
| Tue, 08 Oct 2024 | US$6.2t | US$2.8t | US$60.1b | 30.3x | 102.4x | 2.2x |
| Thu, 05 Sep 2024 | US$6.3t | US$2.8t | US$60.4b | 31.6x | 104.2x | 2.2x |
| Sat, 03 Aug 2024 | US$6.4t | US$2.9t | US$63.3b | 31.8x | 100.9x | 2.2x |
| Mon, 01 Jul 2024 | US$6.2t | US$2.8t | US$62.2b | 30.5x | 99.3x | 2.2x |
| Wed, 29 May 2024 | US$6.1t | US$2.8t | US$63.8b | 30.3x | 96.3x | 2.2x |
| Fri, 26 Apr 2024 | US$6.0t | US$2.8t | US$72.2b | 30.4x | 82.7x | 2.1x |
| Sun, 24 Mar 2024 | US$6.2t | US$2.8t | US$82.2b | 31.8x | 75.9x | 2.2x |
| Tue, 20 Feb 2024 | US$6.3t | US$2.8t | US$82.6b | 30.1x | 75.9x | 2.2x |
| Thu, 18 Jan 2024 | US$6.3t | US$2.8t | US$90.8b | 32x | 69.5x | 2.2x |
| Sat, 16 Dec 2023 | US$6.1t | US$2.8t | US$91.5b | 32.3x | 66.5x | 2.2x |
| Mon, 13 Nov 2023 | US$5.7t | US$2.8t | US$91.1b | 26.3x | 62.2x | 2x |
| Wed, 11 Oct 2023 | US$5.9t | US$2.8t | US$98.3b | 26.9x | 60.2x | 2.1x |
| Fri, 08 Sep 2023 | US$6.1t | US$2.8t | US$98.6b | 26.9x | 62x | 2.2x |
| Sun, 06 Aug 2023 | US$6.1t | US$2.8t | US$100.3b | 28.8x | 60.8x | 2.2x |
| Tue, 04 Jul 2023 | US$6.0t | US$2.7t | US$110.3b | 26.4x | 54.4x | 2.2x |
| Thu, 01 Jun 2023 | US$5.8t | US$2.7t | US$110.5b | 24.6x | 52.6x | 2.1x |
| Sat, 29 Apr 2023 | US$6.0t | US$2.5t | US$118.5b | 24.7x | 50.4x | 2.4x |
| Mon, 27 Mar 2023 | US$5.7t | US$2.5t | US$124.2b | 23.6x | 45.7x | 2.3x |
| Wed, 22 Feb 2023 | US$5.8t | US$2.5t | US$131.0b | 24.4x | 44.4x | 2.4x |
| Fri, 20 Jan 2023 | US$6.0t | US$2.5t | US$135.9b | 23x | 43.9x | 2.4x |
| Sun, 18 Dec 2022 | US$6.0t | US$2.4t | US$133.8b | 23.3x | 44.7x | 2.5x |
| Tue, 15 Nov 2022 | US$5.9t | US$2.4t | US$136.1b | 23.3x | 43.4x | 2.4x |
| Thu, 13 Oct 2022 | US$5.5t | US$2.4t | US$155.6b | 21x | 35.3x | 2.3x |
| Sat, 10 Sep 2022 | US$5.9t | US$2.4t | US$156.6b | 22.8x | 37.9x | 2.5x |
| Mon, 08 Aug 2022 | US$6.0t | US$2.4t | US$161.1b | 24.6x | 37.5x | 2.5x |
| Wed, 06 Jul 2022 | US$5.9t | US$2.6t | US$165.4b | 24.1x | 35.5x | 2.3x |
| Fri, 03 Jun 2022 | US$5.8t | US$2.6t | US$166.5b | 24.2x | 34.9x | 2.2x |
| Sun, 01 May 2022 | US$5.9t | US$2.5t | US$157.0b | 27.4x | 37.5x | 2.4x |
| Tue, 29 Mar 2022 | US$6.5t | US$2.5t | US$171.7b | 28.6x | 37.6x | 2.6x |
| Thu, 24 Feb 2022 | US$6.1t | US$2.5t | US$166.8b | 28.8x | 36.4x | 2.5x |
Price to Earnings Ratio
36.4x
Current Industry PE
- Investors are optimistic on the American Healthcare industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 70.8x which is higher than its 3-year average PE of 61.9x.
- The industry is trading close to its 3-year average PS ratio of 2.3x.
Past Earnings Growth
- The earnings for companies in the Healthcare industry have declined 21% per year over the last three years.
- Meanwhile revenues for these companies have grown 2.3% 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 Market | 1.50% | |
| Healthcare | -1.01% | |
| Healthcare Services | 1.11% | |
| Healthtech | 0.69% | |
| Medical Equipment | 0.66% | |
| Biotech | 0.43% | |
| Pharma | -2.42% | |
| Life Sciences | -5.86% | |
Industry PE
- Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 58.7x.
- Analysts are expecting annual earnings growth of 15.9%, which is higher than its past year's earnings decline of 0.7% per year.
Forecasted Growth
- Analysts are most optimistic on the Healthtech industry, expecting annual earnings growth of 34% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Medical Equipment 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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| CVS CVS Health | US$65.83 | 21.3% +US$14.7b | -14.6% | PE18x | |
| GILD Gilead Sciences | US$104.08 | 9.0% +US$10.7b | 45.4% | PE270.2x | |
| JNJ Johnson & Johnson | US$156.15 | 1.2% +US$4.6b | -0.3% | PE26.7x | |
| ABBV AbbVie | US$192.87 | 1.3% +US$4.1b | 8.7% | PE80.3x | |
| HIMS Hims & Hers Health | US$60.47 | 35.1% +US$3.4b | 502.9% | PE130.5x |
