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U.S. Healthcare Sector Analysis

UpdatedFeb 09, 2026
DataAggregated Company Financials
Companies1385
  • 7D1.3%
  • 3M7.0%
  • 1Y7.3%
  • YTD0.9%

Over the last 7 days, the Healthcare industry has risen 1.3%, driven by gains in Johnson & Johnson and Merck of 5.6% and 11%, respectively. During this same period, the Boston Scientific underperformed, falling 18%. This means that the industry has gained 7.3% over the past year. 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
Mon, 09 Feb 2026US$6.6tUS$3.3tUS$125.4b27.1x52.4x2x
Wed, 07 Jan 2026US$6.5tUS$3.2tUS$135.6b26.3x47.8x2x
Fri, 05 Dec 2025US$6.4tUS$3.2tUS$133.6b26x48.2x2x
Sun, 02 Nov 2025US$6.0tUS$3.1tUS$134.4b26.1x44.4x1.9x
Tue, 30 Sep 2025US$5.7tUS$3.1tUS$137.6b23.4x41.1x1.8x
Thu, 28 Aug 2025US$5.7tUS$3.1tUS$137.2b23.4x41.5x1.8x
Sat, 26 Jul 2025US$5.6tUS$3.0tUS$129.3b24.6x43.1x1.8x
Mon, 23 Jun 2025US$5.4tUS$3.0tUS$127.5b24x42.5x1.8x
Wed, 21 May 2025US$5.5tUS$3.0tUS$126.1b24x43.2x1.8x
Fri, 18 Apr 2025US$5.3tUS$2.6tUS$97.6b24.8x54.3x2x
Sun, 16 Mar 2025US$5.7tUS$2.6tUS$74.8b26.6x75.6x2.1x
Tue, 11 Feb 2025US$5.9tUS$2.6tUS$84.4b26.4x69.6x2.2x
Thu, 09 Jan 2025US$5.9tUS$2.9tUS$79.4b27.3x73.7x2x
Sat, 07 Dec 2024US$6.1tUS$2.9tUS$77.6b28.7x78.3x2.1x
Mon, 04 Nov 2024US$6.2tUS$2.9tUS$71.3b28.4x86.4x2.1x
Wed, 02 Oct 2024US$6.2tUS$2.8tUS$60.0b30.1x104x2.2x
Fri, 30 Aug 2024US$6.3tUS$2.8tUS$54.0b32.1x116.1x2.2x
Sun, 28 Jul 2024US$6.4tUS$2.8tUS$60.8b31.6x105x2.2x
Tue, 25 Jun 2024US$6.2tUS$2.8tUS$62.5b30.1x99.2x2.2x
Thu, 23 May 2024US$6.2tUS$2.8tUS$64.3b30.2x96.8x2.2x
Sat, 20 Apr 2024US$5.9tUS$2.8tUS$84.4b30x70.2x2.1x
Mon, 18 Mar 2024US$6.2tUS$2.8tUS$84.5b31.5x73.7x2.2x
Wed, 14 Feb 2024US$6.1tUS$2.8tUS$82.0b30.7x74.7x2.2x
Fri, 12 Jan 2024US$6.4tUS$2.8tUS$90.1b32x71.1x2.3x
Sun, 10 Dec 2023US$6.0tUS$2.8tUS$91.4b29.4x65.2x2.1x
Tue, 07 Nov 2023US$5.7tUS$2.8tUS$86.7b26.2x66.3x2x
Thu, 05 Oct 2023US$5.8tUS$2.8tUS$98.3b26.7x59.2x2.1x
Sat, 02 Sep 2023US$6.1tUS$2.8tUS$98.7b27.4x61.9x2.2x
Mon, 31 Jul 2023US$6.1tUS$2.7tUS$115.6b28x52.9x2.2x
Wed, 28 Jun 2023US$6.0tUS$2.7tUS$109.8b26.6x54.4x2.2x
Fri, 26 May 2023US$5.9tUS$2.7tUS$110.9b24x53x2.2x
Sun, 23 Apr 2023US$6.0tUS$2.5tUS$117.6b24.9x51x2.4x
Tue, 21 Mar 2023US$5.7tUS$2.5tUS$124.1b23.3x45.7x2.3x
Thu, 16 Feb 2023US$5.9tUS$2.5tUS$129.8b24.9x45.8x2.4x
Price to Earnings Ratio

45.8x


Total Market Cap: US$5.9tTotal Earnings: US$129.8bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.3x202420252026
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 52.4x which is lower than its 3-year average PE of 65.3x.
  • 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 9.6% 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-0.071%
Healthcare1.29%
Pharma4.59%
Biotech3.76%
Healthcare Services-0.031%
Medical Equipment-2.10%
Life Sciences-5.20%
Healthtech-11.16%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry, which is trading close to its 3-year average PE ratio of 56.3x.
    • Analysts are expecting annual earnings growth of 16.5%, which is higher than its past year's earnings growth of 6.2% 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 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
JNJ Johnson & JohnsonUS$239.995.6%
+US$30.7b		56.7%PE21.6x
MRK MerckUS$121.9310.6%
+US$28.9b		39.7%PE16.6x
AMGN AmgenUS$384.3212.4%
+US$22.9b		30.9%PE26.8x
LLY Eli LillyUS$1.06k2.0%
+US$18.8b		20.5%PE45.9x
BMY Bristol-Myers SquibbUS$61.9912.6%
+US$14.1b		9.0%PE17.9x

Latest News

GILD
US$152.50
Gilead Sciences
7D
7.4%
1Y
58.8%
SYK
US$358.29
Stryker
7D
-3.0%
1Y
-8.5%
LLY
US$1,058.18
Eli Lilly
7D
2.0%
1Y
20.5%

Eli Lilly and Company (NYSE:LLY) Just Released Its Yearly Earnings: Here's What Analysts Think

Feb 07
Eli Lilly and Company (NYSE:LLY) Just Released Its Yearly Earnings: Here's What Analysts Think
ISRG
US$488.15
Intuitive Surgical
7D
-3.2%
1Y
-16.3%

ISRG: Future Procedure And Platform Execution Will Test Premium Multiple Assumptions

Analysts nudged their price targets higher on Intuitive Surgical, with a modest fair value move to about $468 per share. They recalibrated assumptions around slightly lower revenue growth, higher profit margins, and a somewhat lower future P/E multiple, following a mix of recent target hikes and trims across the Street.
JNJ
US$239.99
Johnson & Johnson
7D
5.6%
1Y
56.7%
NTRA
US$203.04
Natera
7D
-12.2%
1Y
17.5%

NTRA: Molecular Residual Disease Leadership And FDA Progress Will Shape Future Outlook

Analysts have raised their fair value estimate for Natera to about $257 from roughly $235, citing higher assumed revenue growth, improved profit margins, and Street research that highlights the company as an established diagnostics player with a strong position in molecular residual disease, along with multiple recent price target increases up to $300. Analyst Commentary Recent Street research has been broadly constructive on Natera, with several bullish analysts lifting their price targets and emphasizing the company’s role in diagnostics and molecular residual disease.
ILMN
US$119.72
Illumina
7D
-17.3%
1Y
7.8%
IQV
US$187.49
IQVIA Holdings
7D
-18.5%
1Y
-9.9%
MRK
US$121.93
Merck
7D
10.6%
1Y
39.7%

MRK: Rising Confidence In Pipeline Execution To Support Richer Future P E Multiple

Analysts have nudged our Merck fair value estimate higher to $136, reflecting a higher average price target across firms such as Scotiabank, Goldman Sachs, BMO, BofA, Citi, Wells Fargo, Bernstein, Cantor Fitzgerald, TD Cowen, and others, who cite stronger top line expectations, updated margin assumptions, and a richer future P/E multiple. Analyst Commentary Across recent research, bullish analysts are largely aligned in their view that Merck is executing well enough to support higher valuation assumptions.
BMY
US$61.99
Bristol-Myers Squibb
7D
12.6%
1Y
9.0%

BMY: 2026 Pipeline Readouts And Sector Recovery Will Guide Next Repricing

Our analyst fair value estimate for Bristol Myers Squibb has moved modestly higher to US$58.13 from US$56.26. This reflects updated Street research in which analysts cite a richer mix of potential 2026 pipeline catalysts and a slightly higher assumed future P/E multiple, both of which support recent price target increases across several firms.
BSX
US$76.27
Boston Scientific
7D
-18.5%
1Y
-27.5%

BSX: Execution Outperformance Should Drive Rebound As 2026 Patterns Normalize

The analyst price target for Boston Scientific has been reduced by about $17 to align with updated Street research. This reflects slightly lower revenue growth assumptions, a modestly higher discount rate, and a lower future P/E multiple, while profit margin expectations remain steady.
AMGN
US$384.32
Amgen
7D
12.4%
1Y
30.9%
MCK
US$948.68
McKesson
7D
14.1%
1Y
59.3%
TMO
US$542.83
Thermo Fisher Scientific
7D
-6.2%
1Y
-5.0%

TMO: 2026 Tools Upside And AI Partnerships Will Reshape Earnings Power

Analysts have lifted their fair value estimate for Thermo Fisher Scientific from about $662 to roughly $743, citing updated views on discount rates, revenue growth, profit margins, and future P/E assumptions in light of recent price target increases across the Street. Analyst Commentary Street research around Thermo Fisher Scientific has turned more constructive, with a series of higher price targets that align with the updated fair value estimate.
UNH
US$276.65
UnitedHealth Group
7D
-3.6%
1Y
-47.5%
CVS
US$78.35
CVS Health
7D
5.1%
1Y
45.1%

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.