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U.S. Healthcare Sector Analysis

UpdatedJan 23, 2026
DataAggregated Company Financials
Companies1395
  • 7D1.2%
  • 3M10.1%
  • 1Y10.0%
  • YTD2.9%

In the last week, the Healthcare industry is up 1.2%, with Eli Lilly leading the way, up 2.5%. During this same period, the Abbott Laboratories underperformed, falling 12%. This takes the industry's 12 month performance to a gain of 10.0%. Earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 24 Jan 2026US$6.7tUS$3.2tUS$130.5b27.9x51x2.1x
Mon, 22 Dec 2025US$6.5tUS$3.2tUS$135.2b26.2x48x2x
Wed, 19 Nov 2025US$6.2tUS$3.2tUS$133.4b25.1x46.8x2x
Fri, 17 Oct 2025US$6.0tUS$3.1tUS$140.4b25.4x42.5x1.9x
Sun, 14 Sep 2025US$5.7tUS$3.1tUS$137.6b22.7x41.6x1.9x
Tue, 12 Aug 2025US$5.4tUS$3.1tUS$139.8b23.4x38.5x1.7x
Thu, 10 Jul 2025US$5.5tUS$3.0tUS$127.9b24.2x43.2x1.8x
Sat, 07 Jun 2025US$5.4tUS$3.0tUS$127.2b24x42.7x1.8x
Mon, 05 May 2025US$5.6tUS$2.7tUS$126.2b24.8x44.1x2x
Wed, 02 Apr 2025US$5.7tUS$2.6tUS$81.6b26.3x69.4x2.1x
Fri, 28 Feb 2025US$5.8tUS$2.6tUS$79.7b26.1x73.3x2.2x
Sun, 26 Jan 2025US$6.0tUS$2.9tUS$85.5b27.9x70.7x2.1x
Tue, 24 Dec 2024US$5.8tUS$2.9tUS$78.3b27.1x73.5x2x
Thu, 21 Nov 2024US$5.9tUS$2.9tUS$77.0b27.4x76.7x2x
Sat, 19 Oct 2024US$6.2tUS$2.8tUS$58.7b32.2x105.7x2.2x
Mon, 16 Sep 2024US$6.3tUS$2.8tUS$60.0b30.6x105.4x2.2x
Wed, 14 Aug 2024US$6.0tUS$2.8tUS$55.4b31.1x108.3x2.1x
Fri, 12 Jul 2024US$6.2tUS$2.8tUS$62.2b30.7x100x2.2x
Sun, 09 Jun 2024US$6.2tUS$2.8tUS$63.6b30x97.5x2.2x
Tue, 07 May 2024US$6.1tUS$2.8tUS$64.3b31.1x94.4x2.1x
Thu, 04 Apr 2024US$6.2tUS$2.8tUS$84.0b32.4x73.6x2.2x
Sat, 02 Mar 2024US$6.2tUS$2.8tUS$85.1b31.9x73.3x2.2x
Mon, 29 Jan 2024US$6.3tUS$2.8tUS$90.7b32x69.7x2.2x
Wed, 27 Dec 2023US$6.2tUS$2.8tUS$91.5b33x67.4x2.2x
Fri, 24 Nov 2023US$5.8tUS$2.8tUS$91.2b28.2x63.8x2.1x
Sun, 22 Oct 2023US$5.7tUS$2.8tUS$99.6b25.6x57.7x2.1x
Tue, 19 Sep 2023US$6.0tUS$2.8tUS$98.6b29.1x60.8x2.2x
Thu, 17 Aug 2023US$6.1tUS$2.8tUS$99.2b28.7x61.9x2.2x
Sat, 15 Jul 2023US$6.0tUS$2.7tUS$110.9b26.3x53.9x2.2x
Mon, 12 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Wed, 10 May 2023US$6.0tUS$2.7tUS$111.9b24.4x53.8x2.2x
Fri, 07 Apr 2023US$5.9tUS$2.5tUS$121.8b24.3x48.6x2.4x
Sun, 05 Mar 2023US$5.8tUS$2.5tUS$122.5b25.3x47.3x2.3x
Tue, 31 Jan 2023US$5.9tUS$2.5tUS$133.9b23.5x44.1x2.4x
Price to Earnings Ratio

44.1x


Total Market Cap: US$5.9tTotal Earnings: US$133.9bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.2x202420252026
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 51.0x which is lower than its 3-year average PE of 65.2x.
  • 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 9.1% 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-0.28%
Healthcare1.16%
Biotech4.23%
Pharma1.89%
Healthtech0.93%
Healthcare Services0.84%
Life Sciences0.75%
Medical Equipment-2.23%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 59.5x.
    • Analysts are expecting annual earnings growth of 17.7%, which is higher than its past year's earnings decline of 0.2% 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 56% per year.
  • In contrast, the Pharma 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$1.09k5.3%
+US$48.7b		41.8%PE52.9x
UNH UnitedHealth GroupUS$354.474.6%
+US$14.0b		-33.1%PE18.3x
AMGN AmgenUS$347.075.2%
+US$9.2b		24.9%PE26.7x
GILD Gilead SciencesUS$131.145.0%
+US$7.7b		40.9%PE20.1x
VRTX Vertex PharmaceuticalsUS$467.356.5%
+US$7.2b		6.3%PE32.3x

Latest News

ISRG
US$525.81
Intuitive Surgical
7D
-1.7%
1Y
-10.0%
ABT
US$108.61
Abbott Laboratories
7D
-12.1%
1Y
-11.9%
GILD
US$131.14
Gilead Sciences
7D
5.0%
1Y
40.9%

GILD: Extended HIV Franchise Strength Will Support Stronger Long-Term Earnings Power

Analysts have nudged their fair value estimate for Gilead Sciences up to $159 from $153, citing refreshed models that reflect updated HIV franchise expectations, oncology pipeline inputs, and evolving competitive readthroughs from peers in hepatitis and cell therapy. Analyst Commentary Recent Street research around Gilead Sciences has leaned constructive, with several bullish analysts refining their models and resetting price targets while pointing to HIV, oncology, and select liver and autoimmune assets as the key drivers they are watching.
TMO
US$639.45
Thermo Fisher Scientific
7D
2.4%
1Y
11.2%

TMO: Raised 2026 Expectations And Policy Risks Will Pressure Future Returns

Narrative Update Overview The analyst price target for Thermo Fisher Scientific has shifted higher, from about US$541 to US$575, as analysts reflect updated assumptions for slightly faster revenue growth, stronger profit margins, and a lower future P/E multiple, supported by a series of price target increases across recent Street research. Analyst Commentary Recent Street research on Thermo Fisher Scientific has centered on refreshed models out to 2026, with several firms lifting price targets into a US$650 to US$700 range and maintaining positive ratings.
JNJ
US$218.49
Johnson & Johnson
7D
-0.5%
1Y
49.0%
LLY
US$1,087.38
Eli Lilly
7D
5.3%
1Y
41.8%
AMGN
US$347.07
Amgen
7D
5.2%
1Y
24.9%

Amgen's (NASDAQ:AMGN) Shareholders Will Receive A Bigger Dividend Than Last Year

Jan 21
Amgen's (NASDAQ:AMGN) Shareholders Will Receive A Bigger Dividend Than Last Year
WST
US$247.78
West Pharmaceutical Services
7D
-11.3%
1Y
-28.0%
VRTX
US$467.35
Vertex Pharmaceuticals
7D
6.5%
1Y
6.3%
UNH
US$354.47
UnitedHealth Group
7D
4.6%
1Y
-33.1%

Universal Health Services: Why Behavioral Care Is Becoming a Core Earnings Driver

Healthcare investors often focus on hospital occupancy rates, reimbursement shifts, and labor costs. But beneath those headline metrics, a more durable trend is reshaping the industry.
MRNA
US$51.87
Moderna
7D
31.8%
1Y
22.4%

MRNA: Late Stage Vaccine Outcomes Will Define Future Upside Potential

Narrative update We trim our analyst price target for Moderna from about US$121 to roughly US$87 as analysts factor in lower profit margin expectations, a higher discount rate, cautious views on COVID-related revenue visibility, and a more binary risk profile around key late stage vaccine data, even as some models reflect higher revenue growth assumptions and updated financing terms. Analyst Commentary Recent Street research on Moderna points to a mixed backdrop, with several firms reaffirming cautious stances while still recognizing specific areas where execution and funding choices could support long term value creation.
HCA
US$466.34
HCA Healthcare
7D
-3.6%
1Y
43.3%
BNTX
US$118.47
BioNTech
7D
11.7%
1Y
-3.0%
BMY
US$54.94
Bristol-Myers Squibb
7D
-3.0%
1Y
-7.1%
MCK
US$817.05
McKesson
7D
-3.2%
1Y
36.8%

MCK: North American Pharma Strength Will Support FY26 Core AOI Framework

Narrative Update: McKesson Analysts have lifted their McKesson price targets toward a range of about $900 to $1,000, citing solid North American Pharma momentum, modeled core AOI growth of around 7% for FY26, and a robust demand backdrop reflected in peers' recent results. Analyst Commentary Recent research updates reflect a more constructive stance on McKesson, with higher price targets tied to underlying business trends and peer readthroughs rather than short term trading factors.
MRK
US$109.18
Merck
7D
-1.6%
1Y
13.0%

MRK: Cidara Flu Deal Will Likely Highlight Overstated Long Term Hopes

Narrative Update The analyst price target for Merck has moved higher to a range of about $105 to $135. Analysts point to sector re-ratings, recent upgrades to Outperform, and confidence in the company’s product pipeline and deal activity as key drivers of their updated views.