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U.S. Healthcare Sector Analysis

UpdatedSep 20, 2026
DataAggregated Company Financials
Companies1375
  • 7D1.5%
  • 3M11.3%
  • 1Y23.5%
  • YTD8.6%

The Healthcare industry is up 1.5% in the last week, with Eli Lilly up 3.3%. In the same time, CVS Health was down 6.1%. In the last 12 months, the industry was up 24%. Looking forward, earnings are forecast to grow by 21% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 20 Sep 2026US$7.1tUS$3.4tUS$118.7b25.1x59.6x2.1x
Tue, 18 Aug 2026US$7.1tUS$3.4tUS$115.7b25.9x61.4x2.1x
Thu, 16 Jul 2026US$6.8tUS$3.3tUS$122.0b24.9x55.6x2x
Sat, 13 Jun 2026US$6.5tUS$3.3tUS$122.1b23.4x53.3x2x
Mon, 11 May 2026US$6.2tUS$3.3tUS$123.7b23x49.8x1.9x
Wed, 08 Apr 2026US$6.2tUS$3.3tUS$127.3b22.7x48.4x1.9x
Fri, 06 Mar 2026US$6.5tUS$3.3tUS$126.2b25.4x51.7x2x
Sun, 01 Feb 2026US$6.5tUS$3.2tUS$126.6b27.8x51.2x2x
Tue, 30 Dec 2025US$6.5tUS$3.2tUS$134.8b26.6x48.5x2x
Thu, 27 Nov 2025US$6.6tUS$3.2tUS$133.5b26.7x49.1x2.1x
Sat, 25 Oct 2025US$6.1tUS$3.1tUS$140.4b25.8x43.2x2x
Mon, 22 Sep 2025US$5.7tUS$3.1tUS$137.6b23.9x41.4x1.8x
Wed, 20 Aug 2025US$5.6tUS$3.1tUS$137.0b23.4x41.2x1.8x
Fri, 18 Jul 2025US$5.5tUS$3.0tUS$128.7b22.9x42.8x1.8x
Sun, 15 Jun 2025US$5.5tUS$3.0tUS$127.4b23.5x43.5x1.8x
Tue, 13 May 2025US$5.4tUS$3.0tUS$126.5b24.4x42.5x1.8x
Thu, 10 Apr 2025US$5.1tUS$2.6tUS$81.8b25.3x62.7x1.9x
Sat, 08 Mar 2025US$5.8tUS$2.6tUS$79.0b27.5x73.9x2.2x
Mon, 03 Feb 2025US$6.1tUS$2.9tUS$85.1b27.8x72x2.1x
Wed, 01 Jan 2025US$5.8tUS$2.9tUS$79.4b27.5x72.5x2x
Fri, 29 Nov 2024US$6.2tUS$2.9tUS$77.3b28.5x79.6x2.1x
Sun, 27 Oct 2024US$6.0tUS$2.8tUS$59.1b29.1x102.2x2.1x
Tue, 24 Sep 2024US$6.3tUS$2.8tUS$60.1b30.1x104.6x2.2x
Thu, 22 Aug 2024US$6.2tUS$2.8tUS$56.2b32x110.6x2.2x
Sat, 20 Jul 2024US$6.3tUS$2.8tUS$60.8b31.7x103.2x2.2x
Mon, 17 Jun 2024US$6.2tUS$2.8tUS$62.5b30x98.9x2.2x
Wed, 15 May 2024US$6.1tUS$2.8tUS$63.7b30.8x96x2.2x
Fri, 12 Apr 2024US$6.1tUS$2.8tUS$85.4b32.1x71.4x2.2x
Sun, 10 Mar 2024US$6.3tUS$2.8tUS$85.3b32.5x73.8x2.3x
Tue, 06 Feb 2024US$6.2tUS$2.8tUS$83.9b31.4x74.5x2.2x
Thu, 04 Jan 2024US$6.3tUS$2.8tUS$90.2b31.6x69.7x2.2x
Sat, 02 Dec 2023US$5.9tUS$2.8tUS$91.4b28.8x64.5x2.1x
Mon, 30 Oct 2023US$5.5tUS$2.8tUS$99.5b24.1x55.6x2x
Wed, 27 Sep 2023US$5.9tUS$2.8tUS$98.5b27.4x59.8x2.1x
Price to Earnings Ratio

59.8x


Total Market Cap: US$5.9tTotal Earnings: US$98.5bTotal Revenue: US$2.8tTotal 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 59.6x 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 6.4% 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 Market-0.16%
Healthcare1.51%
Life Sciences6.62%
Pharma1.89%
Medical Equipment1.60%
Healthtech1.54%
Biotech0.56%
Healthcare Services-1.68%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 55.2x.
    • Analysts are expecting annual earnings growth of 18.8%, which is higher than its past year's earnings growth of 9.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 29% over the next 5 years.
  • However this is lower than its past earnings growth rate of 65% per year.
  • In contrast, the Medical Equipment industry is expected to see its earnings grow by 17% 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$1.15k3.3%
+US$33.2b		53.3%PE38.5x
TMO Thermo Fisher ScientificUS$651.456.8%
+US$15.4b		35.8%PE34.6x
ABBV AbbVieUS$263.962.7%
+US$12.1b		18.6%PE74.4x
JNJ Johnson & JohnsonUS$269.991.7%
+US$10.6b		53.2%PE30.9x
ISRG Intuitive SurgicalUS$393.336.6%
+US$8.5b		-10.3%PE44.3x

Latest News

HUM
US$386.22
Humana
7D
-5.8%
1Y
52.9%
CVS
US$88.84
CVS Health
7D
-6.1%
1Y
18.6%
New Narrative • Sep 19

Aetna’s Margin Recovery Is Real — and the Market Is Still Pricing the Old Insurance Scare

CVS Health is no longer the broken-Aetna-plus-drugstore story the market used for most of 2024–25. Through the first half of 2026 the company has raised full-year guidance twice, Aetna’s medical benefit ratio has improved, cash flow is running well ahead of plan, and all three operating segments are growing.
LLY
US$1,152.93
Eli Lilly
7D
3.3%
1Y
53.3%
Narrative Update • Sep 19

LLY: GLP-1 And Obesity Franchise Strength Will Drive Future Upside

Analysts have nudged their average price target for Eli Lilly higher as updated models reflect stronger GLP-1 prescription trends, increased demand in the obesity franchise, and recent price target increases that now cluster around the $1,300 to $1,600 range. Analyst Commentary Recent research updates on Eli Lilly show a wide range of views, but most price targets sit well above the US$900 level, with several clustered between US$1,300 and US$1,600.
MRK
US$146.87
Merck
7D
2.0%
1Y
80.2%
ABBV
US$263.96
AbbVie
7D
2.7%
1Y
18.6%
DHR
US$211.81
Danaher
7D
5.8%
1Y
9.6%
RVMD
US$190.95
Revolution Medicines
7D
-6.3%
1Y
338.6%
Narrative Update • Sep 18

RVMD: Pancreatic Cancer Approval And Frontline RAS Expansion Will Drive Upside

The analyst price target for Revolution Medicines has increased from $221.90 to $251.21. This change reflects updated views on RAS-targeted oncology opportunities, product pricing, and pipeline potential across daraxonrasib, zoldonrasib, and elironrasib.
ARWR
US$66.48
Arrowhead Pharmaceuticals
7D
-19.8%
1Y
116.6%
TMO
US$651.45
Thermo Fisher Scientific
7D
6.8%
1Y
35.8%
Narrative Update • Sep 17

TMO: AI And Biopharma Tailwinds Support Fairly Valued Margin Upside Risk

Analysts have nudged the fair value estimate for Thermo Fisher Scientific higher from $631.42 to $645.15, reflecting updated assumptions around slightly higher margins, a modestly higher future P/E, and continued support from recent upgrades and price target increases across the Street. Analyst Commentary Recent Street research on Thermo Fisher Scientific points to a generally constructive view on the stock, with several firms raising price targets and a few initiating or resuming coverage.
JNJ
US$269.99
Johnson & Johnson
7D
1.7%
1Y
53.2%
UNH
US$376.90
UnitedHealth Group
7D
-0.6%
1Y
11.9%
GILD
US$150.11
Gilead Sciences
7D
4.4%
1Y
31.6%
ISRG
US$393.33
Intuitive Surgical
7D
6.6%
1Y
-10.3%
Seeking Alpha • Sep 15

Intuitive Surgical: My Sell Case Is Losing Ground (Rating Upgrade)

Summary Intuitive Surgical remains a compelling long-term investment, though current valuation still demands strong execution. ISRG's Q2 saw revenue growth moderate to 18.5%, but operating income surged 30.7%, and margins expanded, even after adjusting for tariff refunds. Recurring revenue from instruments, services, and leases drove 86% of incremental sales, while system adoption and installed base growth support future procedures. I move to Hold as lower multiples and resilient earnings offer a better risk-return balance, but procedure growth and demand require close monitoring. Read the full article on Seeking Alpha
INSM
US$120.00
Insmed
7D
-7.3%
1Y
-17.1%
COR
US$308.78
Cencora
7D
-4.0%
1Y
6.5%
CAH
US$225.38
Cardinal Health
7D
-3.9%
1Y
50.7%
Narrative Update • Aug 26

CAH: Higher-Margin Services And Generics Will Support EPS Delivery Into FY27

The analyst fair value estimate for Cardinal Health has increased from $264.73 to $270.94 as analysts factor in higher expected margins from integrated services, contributions from Sonexus and nuclear medicine, and updated Street price targets that now generally fall in the mid to high $200s. Analyst Commentary Recent Street research on Cardinal Health points to a cluster of higher price targets and generally constructive views on execution in pharma distribution, integrated services, and earnings visibility into fiscal 2027.