Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Healthcare Sector Analysis

UpdatedFeb 22, 2026
DataAggregated Company Financials
Companies1389
  • 7D0.2%
  • 3M0.1%
  • 1Y7.1%
  • YTD-0.1%

The Healthcare is pretty flat in the last 7 days, but Intuitive Surgical has stood out, gaining 3.7%. The past year has been better, since the industry has gained 7.1% in that time. 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
Sun, 22 Feb 2026US$6.6tUS$3.3tUS$128.1b26.6x51.1x2x
Tue, 20 Jan 2026US$6.5tUS$3.2tUS$136.3b27.3x48x2x
Thu, 18 Dec 2025US$6.4tUS$3.2tUS$135.3b26.1x47.5x2x
Sat, 15 Nov 2025US$6.3tUS$3.2tUS$134.2b26.2x46.7x2x
Mon, 13 Oct 2025US$5.9tUS$3.1tUS$137.9b24.5x42.9x1.9x
Wed, 10 Sep 2025US$5.8tUS$3.1tUS$137.6b22.9x42x1.9x
Fri, 08 Aug 2025US$5.4tUS$3.1tUS$135.6b23.2x39.7x1.7x
Sun, 06 Jul 2025US$5.6tUS$3.0tUS$127.9b24.3x43.4x1.8x
Tue, 03 Jun 2025US$5.4tUS$3.0tUS$127.2b23.6x42.4x1.8x
Thu, 01 May 2025US$5.4tUS$2.7tUS$116.9b25.5x46.6x2x
Sat, 29 Mar 2025US$5.7tUS$2.6tUS$81.5b26x69.7x2.1x
Mon, 24 Feb 2025US$5.8tUS$2.6tUS$80.5b26.6x72.4x2.2x
Wed, 22 Jan 2025US$5.9tUS$2.9tUS$78.9b28.4x74.2x2x
Fri, 20 Dec 2024US$5.7tUS$2.9tUS$78.2b27.4x73.2x2x
Sun, 17 Nov 2024US$5.9tUS$2.9tUS$76.6b27.6x77.4x2x
Tue, 15 Oct 2024US$6.2tUS$2.8tUS$60.0b29.8x104x2.2x
Thu, 12 Sep 2024US$6.3tUS$2.8tUS$60.5b29.9x103.5x2.2x
Sat, 10 Aug 2024US$6.0tUS$2.8tUS$55.0b30.4x108.8x2.1x
Mon, 08 Jul 2024US$6.1tUS$2.8tUS$62.2b30.2x98.5x2.2x
Wed, 05 Jun 2024US$6.1tUS$2.8tUS$64.1b30.3x95.9x2.2x
Fri, 03 May 2024US$6.0tUS$2.8tUS$67.3b31.4x89.6x2.1x
Sun, 31 Mar 2024US$6.3tUS$2.8tUS$83.9b32.9x75.5x2.3x
Tue, 27 Feb 2024US$6.3tUS$2.8tUS$85.5b30.9x73.9x2.3x
Thu, 25 Jan 2024US$6.4tUS$2.8tUS$91.5b31.9x69.4x2.2x
Sat, 23 Dec 2023US$6.2tUS$2.8tUS$91.6b32.6x67.4x2.2x
Mon, 20 Nov 2023US$5.8tUS$2.8tUS$90.7b27.8x63.6x2x
Wed, 18 Oct 2023US$5.9tUS$2.8tUS$98.9b26.2x59.8x2.1x
Fri, 15 Sep 2023US$6.0tUS$2.8tUS$98.6b28.9x61.3x2.2x
Sun, 13 Aug 2023US$6.2tUS$2.8tUS$99.1b28.6x62.6x2.2x
Tue, 11 Jul 2023US$5.9tUS$2.7tUS$110.3b26.2x53.6x2.2x
Thu, 08 Jun 2023US$5.9tUS$2.7tUS$110.4b25.6x53.8x2.2x
Sat, 06 May 2023US$6.0tUS$2.7tUS$114.0b25x53x2.2x
Mon, 03 Apr 2023US$5.8tUS$2.5tUS$121.7b24.3x47.5x2.3x
Wed, 01 Mar 2023US$5.7tUS$2.5tUS$124.0b24.7x45.9x2.3x
Price to Earnings Ratio

45.9x


Total Market Cap: US$5.7tTotal Earnings: US$124.0bTotal 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 51.1x 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 9.8% 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 Market1.04%
Healthcare0.19%
Healthtech4.53%
Medical Equipment2.46%
Biotech1.00%
Life Sciences0.49%
Healthcare Services-0.79%
Pharma-1.31%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry, which is trading close to its 3-year average PE ratio of 56.2x.
    • Analysts are expecting annual earnings growth of 16.5%, which is higher than its past year's earnings growth of 7.4% 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 59% 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
ISRG Intuitive SurgicalUS$504.053.7%
+US$6.5b		-14.8%PE62.7x
SYK StrykerUS$380.233.9%
+US$5.4b		-0.7%PE44.8x
MDLN MedlineUS$49.8011.8%
+US$4.4b		n/aPE32.7x
INSM InsmedUS$164.9110.9%
+US$3.8b		103.4%PS58.6x
AMGN AmgenUS$374.751.5%
+US$3.0b		23.7%PE26.2x

Latest News

INSM
US$164.91
Insmed
7D
10.9%
1Y
103.4%
ALNY
US$336.19
Alnylam Pharmaceuticals
7D
6.9%
1Y
34.2%
VRTX
US$476.90
Vertex Pharmaceuticals
7D
-3.0%
1Y
-1.5%

VRTX: CF Reliance Will Expose Renal Pipeline Execution Risks

Vertex Pharmaceuticals' updated analyst price target reflects an increase of $23.78 to $401.30, as analysts incorporate refreshed Q4 outcomes, pipeline commentary on programs like povetacicept and IgAN, and modest adjustments to assumptions for revenue growth, profit margin, and future P/E. Analyst Commentary Street research around Vertex Pharmaceuticals has been active following the latest Q4 update, with several firms revisiting their models, refreshing pipeline assumptions, and revising price targets.
SYK
US$380.23
Stryker
7D
3.9%
1Y
-0.7%

SYK: Diversified Medtech Portfolio And Robotics Execution Will Support 2026 Upside

Analysts made a modest trim to their blended Stryker price target, reflecting mixed recent revisions that range from higher targets up to $465 with Outperform ratings to lower targets near $390 and $399 with a Hold rating, as they weigh the company's broader product reach and expected sales and earnings trends against valuation and sector-level risks. Analyst Commentary Recent research on Stryker reflects a split view, with some analysts leaning into the growth story and others more guarded on valuation and sector risks.
ABBV
US$224.81
AbbVie
7D
-2.9%
1Y
11.2%
LLY
US$1,009.52
Eli Lilly
7D
-2.9%
1Y
15.5%
GILD
US$151.40
Gilead Sciences
7D
-2.3%
1Y
37.7%

GILD: Elevated Future Expectations Will Hinge On Execution In Oncology

Gilead Sciences' updated analyst price target has moved sharply higher to $122.64 from $91.83, as analysts broadly lift their targets into the $140 to $170 range, citing steadier HIV franchise expectations, contributions from recent launches, and adjusted assumptions for expenses and oncology assets. Analyst Commentary Recent Street research shows a clear tilt toward higher valuation frameworks for Gilead Sciences, with several firms taking their targets into a broad US$140 to US$170 range.
CI
US$280.31
Cigna Group
7D
-3.8%
1Y
-6.5%

CI: Higher Margin Outlook And Onsite Care Expansion Will Support Upside

Analysts have modestly lifted their price target on Cigna Group to $332.62 from $326.92, citing updated assumptions that combine slightly lower revenue growth with a higher profit margin and a future P/E of 15.62. What's in the News A class action lawsuit has been filed against Express Scripts, Cigna, and Evernorth, alleging a rebate diversion scheme that used an offshore entity, Ascent, to collect billions of dollars in kickbacks labeled as fees instead of passing rebates through to pharmacy benefit management clients, including the Plumbers' Welfare Fund.
MRNA
US$49.87
Moderna
7D
18.1%
1Y
40.4%
IBRX
US$8.70
ImmunityBio
7D
46.3%
1Y
154.4%
MDT
US$96.86
Medtronic
7D
-2.6%
1Y
7.7%
PFE
US$26.65
Pfizer
7D
-3.4%
1Y
1.3%
UNH
US$290.00
UnitedHealth Group
7D
-1.1%
1Y
-37.8%

UnitedHealth Group's Future Revenue Grows by 3.59%: What Will It Mean?

UnitedHealth (UNH): A Data Giant Hidden in an Insurer's Crisis Investment Narrative – February 2026 Price Target (12m): $395.00 (+35% upside) Rating: Strong Buy (Contrarian) 1. The Core Thesis: The "Optum" Mispricing The market is currently valuing UnitedHealth through the narrow lens of a traditional insurer struggling with Medicare Advantage (MA) rate cuts and CMS regulatory headwinds for 2027.
AMGN
US$374.75
Amgen
7D
1.5%
1Y
23.7%

AMGN: Long Patent Expiries And Heavier Spending Will Pressure Future Earnings

Analysts have lifted their price targets on Amgen by about $12 to reflect updated views on fair value, profitability, and future P/E assumptions, while also factoring in a higher discount rate and lower projected revenue growth. Analyst Commentary Recent research on Amgen points to a split view, with several firms lifting price targets while others are turning more cautious.
ISRG
US$504.05
Intuitive Surgical
7D
3.7%
1Y
-14.8%

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.
MDLN
US$49.80
Medline
7D
11.8%
1Y
n/a