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U.S. Healthcare Sector Analysis

UpdatedFeb 13, 2025
DataAggregated Company Financials
Companies1407
  • 7D-2.3%
  • 3M-0.4%
  • 1Y0.05%
  • YTD4.5%

Over the last 7 days, the Healthcare industry has dropped 2.3%, driven by a pullback from Thermo Fisher Scientific of 7.6%. 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?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 13 Feb 2025US$5.8tUS$2.6tUS$84.4b26.1x69.1x2.2x
Sat, 11 Jan 2025US$5.9tUS$2.9tUS$78.8b27.6x74.6x2x
Mon, 09 Dec 2024US$6.1tUS$2.9tUS$77.6b28.7x78.2x2.1x
Wed, 06 Nov 2024US$6.1tUS$2.9tUS$74.9b28.8x81.9x2.1x
Fri, 04 Oct 2024US$6.2tUS$2.8tUS$60.0b30.1x103.3x2.2x
Sun, 01 Sep 2024US$6.3tUS$2.8tUS$60.3b32.2x105x2.2x
Tue, 30 Jul 2024US$6.4tUS$2.8tUS$60.8b32.1x105x2.2x
Thu, 27 Jun 2024US$6.2tUS$2.8tUS$62.4b29.9x99.4x2.2x
Sat, 25 May 2024US$6.2tUS$2.8tUS$64.1b30.9x96.1x2.2x
Mon, 22 Apr 2024US$5.9tUS$2.8tUS$84.6b30.2x70x2.1x
Wed, 20 Mar 2024US$6.3tUS$2.8tUS$84.2b31.8x74.4x2.3x
Fri, 16 Feb 2024US$6.2tUS$2.8tUS$82.3b30.8x75.2x2.2x
Sun, 14 Jan 2024US$6.4tUS$2.8tUS$90.8b32.2x70.2x2.3x
Tue, 12 Dec 2023US$6.0tUS$2.8tUS$91.3b30.1x65.5x2.1x
Thu, 09 Nov 2023US$5.8tUS$2.8tUS$88.8b25.8x65.1x2.1x
Sat, 07 Oct 2023US$5.9tUS$2.8tUS$98.3b26.7x59.7x2.1x
Mon, 04 Sep 2023US$6.1tUS$2.8tUS$98.7b27.4x61.9x2.2x
Wed, 02 Aug 2023US$6.0tUS$2.7tUS$98.2b28.6x61.5x2.2x
Fri, 30 Jun 2023US$6.0tUS$2.7tUS$109.9b26.5x54.5x2.2x
Sun, 28 May 2023US$5.8tUS$2.7tUS$110.5b24.4x52.6x2.1x
Tue, 25 Apr 2023US$6.0tUS$2.5tUS$117.7b24.9x51.1x2.4x
Thu, 23 Mar 2023US$5.6tUS$2.5tUS$124.3b23.1x45.2x2.3x
Sat, 18 Feb 2023US$5.9tUS$2.5tUS$131.2b24.7x45.1x2.4x
Mon, 16 Jan 2023US$6.1tUS$2.5tUS$135.9b22.9x44.6x2.5x
Wed, 14 Dec 2022US$6.2tUS$2.4tUS$133.7b23.5x46.1x2.5x
Fri, 11 Nov 2022US$6.0tUS$2.4tUS$136.4b23.7x43.7x2.5x
Sun, 09 Oct 2022US$5.5tUS$2.4tUS$155.7b21.4x35.6x2.3x
Tue, 06 Sep 2022US$5.7tUS$2.4tUS$156.5b22.2x36.2x2.4x
Thu, 04 Aug 2022US$6.0tUS$2.6tUS$164.2b24.6x36.8x2.3x
Sat, 02 Jul 2022US$5.9tUS$2.6tUS$165.5b23.8x35.4x2.3x
Mon, 30 May 2022US$6.0tUS$2.6tUS$165.6b25.5x36.2x2.3x
Wed, 27 Apr 2022US$6.1tUS$2.5tUS$174.8b27.6x35x2.4x
Fri, 25 Mar 2022US$6.4tUS$2.5tUS$170.9b28.4x37.7x2.6x
Sun, 20 Feb 2022US$6.1tUS$2.5tUS$166.0b28.8x36.7x2.5x
Price to Earnings Ratio

36.7x


Total Market Cap: US$6.1tTotal Earnings: US$166.0bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 61.7x202320242025
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 69.1x which is higher than its 3-year average PE of 61.7x.
  • 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 20% per year over the last three years.
  • Meanwhile revenues for these companies have grown 2.4% 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-0.48%
Healthcare-2.33%
Healthtech3.43%
Pharma0.15%
Medical Equipment-2.17%
Healthcare Services-2.35%
Biotech-4.81%
Life Sciences-6.96%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 58.6x.
    • Analysts are expecting annual earnings growth of 15.7%, 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 33% 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?

CompanyLast Price7D1YValuation
LLY Eli LillyUS$872.973.7%
+US$27.7b		15.3%PE74.2x
CVS CVS HealthUS$63.2213.5%
+US$9.5b		-17.3%PE17.2x
GILD Gilead SciencesUS$103.313.7%
+US$4.6b		41.4%PE268.2x
DOCS DoximityUS$75.1829.3%
+US$3.3b		155.7%PE70.1x
ABBV AbbVieUS$193.000.7%
+US$2.2b		10.7%PE79.7x
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Latest News

CVS

US$63.22

CVS Health

7D

13.5%

1Y

-17.3%

CVS Health Jumps On Q4 Earnings Beat, But Downgrading To Hold

Feb 13

MRK

US$85.67

Merck

7D

-4.5%

1Y

-31.9%

DOCS

US$75.18

Doximity

7D

29.3%

1Y

155.7%

GILD

US$103.31

Gilead Sciences

7D

3.7%

1Y

41.4%

VRTX

US$453.20

Vertex Pharmaceuticals

7D

-7.2%

1Y

8.5%

EW

US$75.82

Edwards Lifesciences

7D

5.2%

1Y

-11.9%

TMO

US$538.00

Thermo Fisher Scientific

7D

-7.6%

1Y

-1.9%

JNJ

US$155.26

Johnson & Johnson

7D

0.4%

1Y

-0.3%

SWTX

US$59.28

SpringWorks Therapeutics

7D

44.6%

1Y

27.4%

LLY

US$872.97

Eli Lilly

7D

3.7%

1Y

15.3%

BMY

US$56.15

Bristol-Myers Squibb

7D

-6.0%

1Y

14.8%

UNH

US$527.40

UnitedHealth Group

7D

-2.3%

1Y

2.0%

AMGN

US$295.06

Amgen

7D

-4.1%

1Y

1.7%

ABBV

US$193.00

AbbVie

7D

0.7%

1Y

10.7%

BDX

US$225.85

Becton Dickinson

7D

-7.8%

1Y

-5.3%

DHR

US$202.18

Danaher

7D

-4.7%

1Y

-18.5%