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

U.S. Healthcare Sector Analysis

UpdatedAug 22, 2025
DataAggregated Company Financials
Companies1368
  • 7D1.9%
  • 3M6.2%
  • 1Y-11.7%
  • YTD-1.7%

Over the last 7 days, the Healthcare industry has risen 2.4%, driven by gains from UnitedHealth Group of 12%. In the past year, the industry is down 12%. Earnings are forecast to grow by 15% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 22 Aug 2025US$5.7tUS$3.1tUS$137.2b23.3x41.4x1.8x
Sun, 20 Jul 2025US$5.4tUS$3.0tUS$128.8b22.7x42x1.8x
Tue, 17 Jun 2025US$5.5tUS$3.0tUS$127.4b23.6x43.5x1.8x
Thu, 15 May 2025US$5.4tUS$3.0tUS$125.9b23.5x42.5x1.8x
Sat, 12 Apr 2025US$5.2tUS$2.6tUS$81.8b24.9x63.8x2x
Mon, 10 Mar 2025US$5.8tUS$2.6tUS$79.0b27.5x73.7x2.2x
Wed, 05 Feb 2025US$6.1tUS$3.0tUS$93.6b27.6x65.4x2.1x
Fri, 03 Jan 2025US$5.8tUS$2.9tUS$79.4b27.2x72.6x2x
Sun, 01 Dec 2024US$6.2tUS$2.9tUS$77.3b28.8x79.8x2.1x
Tue, 29 Oct 2024US$6.0tUS$2.8tUS$59.1b29.2x102.2x2.1x
Thu, 26 Sep 2024US$6.3tUS$2.8tUS$60.1b29.2x104x2.2x
Sat, 24 Aug 2024US$6.2tUS$2.8tUS$56.4b31.6x110.4x2.2x
Mon, 22 Jul 2024US$6.3tUS$2.8tUS$60.7b31.7x103.5x2.2x
Wed, 19 Jun 2024US$6.2tUS$2.8tUS$62.5b29.9x98.6x2.2x
Fri, 17 May 2024US$6.2tUS$2.8tUS$64.2b30.4x97.1x2.2x
Sun, 14 Apr 2024US$6.1tUS$2.8tUS$85.3b31.4x71.2x2.2x
Tue, 12 Mar 2024US$6.3tUS$2.8tUS$85.3b32.2x73.6x2.3x
Thu, 08 Feb 2024US$6.2tUS$2.8tUS$76.8b30.8x80.1x2.2x
Sat, 06 Jan 2024US$6.3tUS$2.8tUS$90.0b30.9x70.1x2.2x
Mon, 04 Dec 2023US$5.9tUS$2.8tUS$91.4b28.8x65x2.1x
Wed, 01 Nov 2023US$5.6tUS$2.8tUS$99.1b24.2x56.5x2x
Fri, 29 Sep 2023US$5.9tUS$2.8tUS$98.6b27.5x59.8x2.1x
Sun, 27 Aug 2023US$6.1tUS$2.8tUS$99.0b27.7x61.6x2.2x
Tue, 25 Jul 2023US$6.1tUS$2.7tUS$110.8b27x55.3x2.2x
Thu, 22 Jun 2023US$6.0tUS$2.7tUS$110.0b26.3x54.7x2.2x
Sat, 20 May 2023US$6.0tUS$2.7tUS$110.8b24.2x53.9x2.2x
Mon, 17 Apr 2023US$6.0tUS$2.5tUS$123.8b24.2x48.3x2.4x
Wed, 15 Mar 2023US$5.6tUS$2.5tUS$122.8b24.5x45.8x2.3x
Fri, 10 Feb 2023US$5.9tUS$2.4tUS$131.8b23.6x44.8x2.4x
Sun, 08 Jan 2023US$6.0tUS$2.5tUS$135.4b22.7x44.4x2.5x
Tue, 06 Dec 2022US$6.1tUS$2.4tUS$133.7b23.7x45.6x2.5x
Thu, 03 Nov 2022US$5.8tUS$2.4tUS$150.0b22.3x38.7x2.4x
Sat, 01 Oct 2022US$5.5tUS$2.4tUS$155.7b21.2x35.2x2.3x
Mon, 29 Aug 2022US$5.8tUS$2.4tUS$157.1b22.9x36.9x2.4x
Price to Earnings Ratio

36.9x


Total Market Cap: US$5.8tTotal Earnings: US$157.1bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 64.6x202320242025
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 41.3x which is lower than its 3-year average PE of 64.6x.
  • The 3-year average PS ratio of 2.2x is higher than the industry's current PS ratio of 1.8x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have declined 4.4% per year over the last three years.
  • Meanwhile revenues for these companies have grown 8.8% 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, which has decreased profits.

Industry Trends

Which industries have driven the changes within the U.S. Healthcare sector?

US Market-1.60%
Healthcare1.86%
Healthcare Services5.89%
Pharma2.89%
Healthtech2.28%
Biotech0.57%
Medical Equipment0.49%
Life Sciences-1.19%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 57.4x.
    • Analysts are expecting annual earnings growth of 12.9%, which is lower than the prior year's growth of 17.3% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 25% over the next 5 years.
  • However this is lower than its past earnings growth rate of 69% 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
UNH UnitedHealth GroupUS$303.3511.7%
+US$28.9b		-47.6%PE12.9x
LLY Eli LillyUS$709.823.7%
+US$22.8b		-25.6%PE46.2x
JNJ Johnson & JohnsonUS$178.932.4%
+US$10.1b		10.2%PE19x
ABBV AbbVieUS$209.502.4%
+US$8.5b		6.7%PE99.4x
MRK MerckUS$86.084.0%
+US$8.3b		-26.1%PE13.1x

Latest News

ABBV
US$209.50
AbbVie
7D
2.4%
1Y
6.7%
LLY
US$709.82
Eli Lilly
7D
3.7%
1Y
-25.6%
VKTX
US$25.66
Viking Therapeutics
7D
-36.2%
1Y
-60.1%
MDT
US$91.10
Medtronic
7D
-1.0%
1Y
3.7%
ABT
US$132.00
Abbott Laboratories
7D
2.1%
1Y
17.8%
MRK
US$86.08
Merck
7D
4.0%
1Y
-26.1%
JNJ
US$178.93
Johnson & Johnson
7D
2.4%
1Y
10.2%
UNH
US$303.35
UnitedHealth Group
7D
11.7%
1Y
-47.6%
GILD
US$116.14
Gilead Sciences
7D
-2.4%
1Y
53.0%
MCK
US$706.00
McKesson
7D
4.8%
1Y
25.9%
MTD
US$1,278.00
Mettler-Toledo International
7D
-2.7%
1Y
-10.2%
CVS
US$71.43
CVS Health
7D
7.0%
1Y
23.7%

CVS Health's (NYSE:CVS) Soft Earnings Don't Show The Whole Picture

Aug 13
CVS Health's (NYSE:CVS) Soft Earnings Don't Show The Whole Picture
HIMS
US$43.96
Hims & Hers Health
7D
-6.7%
1Y
167.1%
DHR
US$203.90
Danaher
7D
-3.0%
1Y
-23.9%
IDXX
US$633.05
IDEXX Laboratories
7D
-3.2%
1Y
28.7%

Advanced Diagnostics And International Expansion Will Define Future Opportunity

IDEXX Laboratories’ consensus price target has been sharply raised, reflecting strengthened revenue growth forecasts and a higher future P/E multiple, with fair value increasing from $542.55 to $657.55. What's in the News IDEXX Laboratories raised 2025 earnings guidance, increasing revenue outlook to $4,205–$4,280 million (up $90 million at midpoint) and EPS to $12.40–$12.76 (up $0.40 at midpoint), reflecting strong recurring diagnostics revenue, higher inVue Dx instrument placements, and favorable foreign exchange.
ISRG
US$469.88
Intuitive Surgical
7D
-1.5%
1Y
-4.2%