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U.S. Healthcare Sector Analysis

UpdatedMar 25, 2026
DataAggregated Company Financials
Companies1381
  • 7D-2.5%
  • 3M-8.2%
  • 1Y1.3%
  • YTD-7.4%

Over the last 7 days, the Healthcare industry has dropped 2.5%, driven by declines in AbbVie and Eli Lilly of 6.6% and 2.9%, respectively. Over the last year, the industry has been flat overall. Looking forward, 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
Wed, 25 Mar 2026US$6.1tUS$3.3tUS$124.8b22.7x48.8x1.9x
Fri, 20 Feb 2026US$6.6tUS$3.3tUS$128.0b26.4x51.4x2x
Sun, 18 Jan 2026US$6.5tUS$3.2tUS$136.3b27.3x48x2x
Tue, 16 Dec 2025US$6.4tUS$3.2tUS$134.0b26.1x47.8x2x
Thu, 13 Nov 2025US$6.2tUS$3.2tUS$133.3b26.5x46.7x2x
Sat, 11 Oct 2025US$6.0tUS$3.1tUS$137.9b24.5x43.7x1.9x
Mon, 08 Sep 2025US$5.7tUS$3.1tUS$137.6b23.1x41.6x1.9x
Wed, 06 Aug 2025US$5.5tUS$3.1tUS$135.3b23.1x40.5x1.8x
Fri, 04 Jul 2025US$5.6tUS$3.0tUS$127.9b24.3x43.4x1.8x
Sun, 01 Jun 2025US$5.4tUS$3.0tUS$127.3b23.1x42.3x1.8x
Tue, 29 Apr 2025US$5.4tUS$2.7tUS$118.5b25.1x45.6x2x
Thu, 27 Mar 2025US$5.7tUS$2.6tUS$81.8b26.5x69.8x2.2x
Sat, 22 Feb 2025US$5.8tUS$2.6tUS$80.4b26.6x72.5x2.2x
Mon, 20 Jan 2025US$5.9tUS$2.9tUS$79.0b27.7x74.1x2x
Wed, 18 Dec 2024US$5.9tUS$2.9tUS$77.7b27.9x75.3x2x
Fri, 15 Nov 2024US$6.2tUS$2.9tUS$76.3b27.8x81.2x2.1x
Sun, 13 Oct 2024US$6.2tUS$2.8tUS$60.0b29.8x104x2.2x
Tue, 10 Sep 2024US$6.2tUS$2.8tUS$60.4b30.5x103.2x2.2x
Thu, 08 Aug 2024US$6.2tUS$2.9tUS$60.3b29.8x103.2x2.2x
Sat, 06 Jul 2024US$6.1tUS$2.8tUS$62.2b30.2x97.8x2.2x
Mon, 03 Jun 2024US$6.1tUS$2.8tUS$64.0b29.9x95.2x2.2x
Wed, 01 May 2024US$6.0tUS$2.8tUS$68.3b31.3x87.9x2.1x
Fri, 29 Mar 2024US$6.3tUS$2.8tUS$82.4b32.4x77x2.3x
Sun, 25 Feb 2024US$6.3tUS$2.8tUS$85.5b31.1x74x2.3x
Tue, 23 Jan 2024US$6.4tUS$2.8tUS$90.8b32.7x69.9x2.2x
Thu, 21 Dec 2023US$6.1tUS$2.8tUS$91.5b31.8x67.2x2.2x
Sat, 18 Nov 2023US$5.8tUS$2.8tUS$90.7b27.8x63.6x2x
Mon, 16 Oct 2023US$5.9tUS$2.8tUS$98.9b25.7x59.3x2.1x
Wed, 13 Sep 2023US$6.1tUS$2.8tUS$98.6b27.6x61.5x2.2x
Fri, 11 Aug 2023US$6.2tUS$2.8tUS$99.3b28.8x62.1x2.2x
Sun, 09 Jul 2023US$5.9tUS$2.7tUS$110.3b26x53.1x2.1x
Tue, 06 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Thu, 04 May 2023US$6.0tUS$2.7tUS$116.9b24.4x51.5x2.2x
Sat, 01 Apr 2023US$5.8tUS$2.5tUS$121.8b24.2x47.4x2.3x
Price to Earnings Ratio

47.4x


Total Market Cap: US$5.8tTotal Earnings: US$121.8bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.5x202420252026
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 48.8x which is lower than its 3-year average PE of 65.5x.
  • The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.9x.
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-2.29%
Healthcare-2.54%
Life Sciences0.85%
Pharma-2.05%
Healthtech-2.92%
Healthcare Services-3.11%
Medical Equipment-3.39%
Biotech-3.61%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 55.9x.
    • Analysts are expecting annual earnings growth of 15.9%, which is higher than its past year's earnings growth of 6.8% 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 40% 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
TMO Thermo Fisher ScientificUS$490.293.7%
+US$6.5b		-4.7%PE27.2x
MRK MerckUS$116.370.4%
+US$1.2b		32.4%PE15.8x
MTD Mettler-Toledo InternationalUS$1.26k4.8%
+US$1.1b		5.8%PE29.5x
ILMN IlluminaUS$125.984.3%
+US$785.9m		43.9%PE22.7x
RGC Regencell Bioscience HoldingsUS$24.436.3%
+US$719.5m		2,083.9%PB2485x

Latest News

MRK
US$116.37
Merck
7D
0.4%
1Y
32.4%
TMO
US$490.29
Thermo Fisher Scientific
7D
3.7%
1Y
-4.7%
ABBV
US$205.20
AbbVie
7D
-6.6%
1Y
1.9%

ABBV: Future Returns Will Hinge On Immunology Encore Outweighing Competitive Concerns

Narrative Update The analyst price target for AbbVie has been adjusted slightly higher to reflect a fair value move to about $249. Analysts point to early stage indication expansion, operating leverage potential, and ongoing immunology pipeline developments, even as some firms flag emerging competition and a more balanced risk and reward profile.
SYK
US$328.51
Stryker
7D
-5.9%
1Y
-11.9%
GILD
US$138.11
Gilead Sciences
7D
-4.4%
1Y
28.0%
LLY
US$903.02
Eli Lilly
7D
-2.9%
1Y
5.9%

LLY: Obesity And Diabetes Franchise Strength Will Support Premium Positioning

Analysts have raised their price target for Eli Lilly to $1,500, citing updated models that reflect slightly stronger assumed revenue growth, a marginally higher profit margin profile, and continued confidence in the obesity and diabetes franchises following recent trial data and supportive sell side research. Analyst Commentary Recent research highlights a split view on Eli Lilly, with some bullish analysts leaning into the obesity and diabetes opportunity set, while at least one more cautious voice questions how much growth is already reflected in the share price.
ABT
US$104.06
Abbott Laboratories
7D
-6.0%
1Y
-17.1%
WAT
US$301.92
Waters
7D
1.7%
1Y
-18.1%

WAT: New Four Division Model Will Support Higher Long Term Profitability

Analysts have kept their price target for Waters steady at $398.05. This reflects updated views on a slightly lower discount rate, modestly adjusted revenue growth expectations, a higher projected profit margin, and a reduced future P/E assumption.
HTFL
US$27.97
HeartFlow
7D
24.2%
1Y
n/a
CI
US$265.87
Cigna Group
7D
0.9%
1Y
-16.1%

CI: Onsite Care Expansion And Leadership Transition Will Support Future Upside

Analysts have nudged their fair value estimate for Cigna Group from about $336.67 to roughly $338.80. This reflects updated views on revenue growth, profit margins, and an anticipated forward P/E of around 13.43x.
MTD
US$1,264.46
Mettler-Toledo International
7D
4.8%
1Y
5.8%
ILMN
US$125.98
Illumina
7D
4.3%
1Y
43.9%

ILMN: Future Returns Will Hinge On China Recovery And 2026 Tools Demand

Illumina's updated analyst price target sits slightly higher at about $136, with analysts citing firmer revenue and margin assumptions, a modestly higher discount rate, and supportive recent commentary on competitive pricing for whole genome sequencing consumables. Analyst Commentary Recent Street research on Illumina reflects a mix of optimism and caution, with several firms adjusting price targets and reassessing the setup for the next couple of years.
UNH
US$272.28
UnitedHealth Group
7D
-5.3%
1Y
-47.0%
AMGN
US$348.43
Amgen
7D
-3.5%
1Y
13.5%

AMGN: Fair Outlook Balances Patent Expiries With Late Stage Pipeline Potential

The Analyst Price Target for Amgen has been updated from $327.74 to $350.03 as analysts factor in recent price target increases tied to stronger near term commercial execution, added value from key Phase 3 pipeline assets, and a shift toward discounted cash flow based models that emphasize improved margin assumptions and a slightly lower discount rate. Analyst Commentary Recent Street commentary around Amgen reflects a mix of optimism about the current execution and pipeline, alongside ongoing debate about valuation, product risks, and long term earnings durability.
MCK
US$881.94
McKesson
7D
-6.4%
1Y
32.9%

MCK: Biosimilar Optionality And Premium Safe Haven Position Will Shape Future Returns

Analysts have increased their McKesson price target from $980.40 to $995.27, citing higher Street targets that reflect new biosimilar optionality and continued interest in the stock as a perceived healthcare safe haven, even at a premium valuation. Analyst Commentary Bullish analysts are leaning into McKesson's role as a perceived healthcare safe haven and the new biosimilar angle, using these themes to justify higher valuation levels than the recent three year average.
RGC
US$24.43
Regencell Bioscience Holdings
7D
6.3%
1Y
2,083.9%

Regencell Bioscience Holdings Ltd. (RGC) The TCM Biotech Lottery Ticket: High Hopes and Extreme Volatility

If you're looking for a stock that perfectly embodies the wild, speculative side of the market for your viewers, Regencell Bioscience (RGC) is it. As of late February 2026, this Hong Kong-headquartered, early-stage bioscience company is trading around $29.17 , following a period of mind-bending volatility where the stock surged thousands of percent over the past year.