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U.S. Healthcare Sector Analysis
UpdatedMay 22, 2025
DataAggregated Company Financials
Companies1400
- 7D1.8%
- 3M-12.0%
- 1Y-12.6%
- YTD-7.1%
In the last week, the Healthcare industry is up 1.8%, with Johnson & Johnson up 4.7%. In contrast, the industry has lost 13% in the last 12 months. 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?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 22 May 2025 | US$5.5t | US$3.0t | US$126.3b | 22.9x | 43.4x | 1.8x |
| Sat, 19 Apr 2025 | US$5.3t | US$2.6t | US$97.6b | 24.8x | 54.1x | 2x |
| Mon, 17 Mar 2025 | US$5.7t | US$2.6t | US$74.8b | 26.6x | 75.6x | 2.1x |
| Wed, 12 Feb 2025 | US$5.9t | US$2.6t | US$84.7b | 26x | 69.3x | 2.2x |
| Fri, 10 Jan 2025 | US$5.9t | US$2.9t | US$79.4b | 27.3x | 74x | 2x |
| Sun, 08 Dec 2024 | US$6.1t | US$2.9t | US$77.6b | 28.7x | 78.2x | 2.1x |
| Tue, 05 Nov 2024 | US$6.2t | US$2.9t | US$71.2b | 28.1x | 86.5x | 2.1x |
| Thu, 03 Oct 2024 | US$6.2t | US$2.8t | US$60.0b | 30.1x | 104x | 2.2x |
| Sat, 31 Aug 2024 | US$6.3t | US$2.8t | US$54.1b | 32.3x | 116.2x | 2.2x |
| Mon, 29 Jul 2024 | US$6.4t | US$2.8t | US$60.8b | 31.7x | 105x | 2.2x |
| Wed, 26 Jun 2024 | US$6.2t | US$2.8t | US$62.4b | 30.3x | 99.7x | 2.2x |
| Fri, 24 May 2024 | US$6.2t | US$2.8t | US$64.3b | 30.2x | 97x | 2.2x |
| Sun, 21 Apr 2024 | US$5.9t | US$2.8t | US$84.6b | 30.2x | 70.1x | 2.1x |
| Tue, 19 Mar 2024 | US$6.2t | US$2.8t | US$84.7b | 31.5x | 73.4x | 2.2x |
| Thu, 15 Feb 2024 | US$6.1t | US$2.8t | US$82.0b | 31.1x | 74.6x | 2.2x |
| Sat, 13 Jan 2024 | US$6.4t | US$2.8t | US$90.8b | 32.2x | 70.2x | 2.3x |
| Mon, 11 Dec 2023 | US$6.0t | US$2.8t | US$91.4b | 29.4x | 65.2x | 2.1x |
| Wed, 08 Nov 2023 | US$5.8t | US$2.8t | US$86.9b | 25.8x | 66.6x | 2.1x |
| Fri, 06 Oct 2023 | US$5.8t | US$2.8t | US$98.3b | 26.7x | 59.1x | 2.1x |
| Sun, 03 Sep 2023 | US$6.1t | US$2.8t | US$98.7b | 27.4x | 61.9x | 2.2x |
| Tue, 01 Aug 2023 | US$6.1t | US$2.7t | US$115.7b | 28x | 52.5x | 2.2x |
| Thu, 29 Jun 2023 | US$6.0t | US$2.7t | US$109.9b | 26.3x | 54.2x | 2.2x |
| Sat, 27 May 2023 | US$5.8t | US$2.7t | US$110.5b | 24.4x | 52.6x | 2.1x |
| Mon, 24 Apr 2023 | US$6.0t | US$2.5t | US$117.6b | 24.9x | 51x | 2.4x |
| Wed, 22 Mar 2023 | US$5.7t | US$2.5t | US$124.2b | 23.4x | 45.9x | 2.3x |
| Fri, 17 Feb 2023 | US$5.9t | US$2.5t | US$130.3b | 24.5x | 45.1x | 2.4x |
| Sun, 15 Jan 2023 | US$6.1t | US$2.5t | US$135.9b | 22.9x | 44.6x | 2.5x |
| Tue, 13 Dec 2022 | US$6.1t | US$2.4t | US$133.7b | 23.7x | 45.9x | 2.5x |
| Thu, 10 Nov 2022 | US$5.8t | US$2.4t | US$136.7b | 22.5x | 42.2x | 2.4x |
| Sat, 08 Oct 2022 | US$5.5t | US$2.4t | US$155.8b | 21.4x | 35.5x | 2.3x |
| Mon, 05 Sep 2022 | US$5.7t | US$2.4t | US$156.6b | 22.2x | 36.2x | 2.4x |
| Wed, 03 Aug 2022 | US$6.0t | US$2.6t | US$165.6b | 24.1x | 36x | 2.3x |
| Fri, 01 Jul 2022 | US$5.8t | US$2.6t | US$165.9b | 23.6x | 34.9x | 2.2x |
| Sun, 29 May 2022 | US$6.0t | US$2.6t | US$165.6b | 25.5x | 36.3x | 2.3x |
Price to Earnings Ratio
36.3x
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 43.4x which is lower than its 3-year average PE of 64.0x.
- 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 8.6% per year over the last three years.
- Meanwhile revenues for these companies have grown 5.4% 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 | -1.15% | |
| Healthcare | 1.78% | |
| Biotech | 5.12% | |
| Pharma | 3.21% | |
| Healthcare Services | 1.49% | |
| Medical Equipment | -0.26% | |
| Life Sciences | -1.54% | |
| Healthtech | -4.65% | |
Industry PE
- Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 60.7x.
- Analysts are expecting annual earnings growth of 16.6%, which is higher than its past year's earnings decline of 1.7% per year.
Forecasted Growth
- Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 24% 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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| JNJ Johnson & Johnson | US$153.18 | 4.7% +US$16.4b | -0.2% | PE16.9x | |
| GILD Gilead Sciences | US$107.72 | 9.5% +US$11.6b | 58.9% | PE22.5x | |
| MRK Merck | US$76.98 | 4.8% +US$8.8b | -41.3% | PE11.1x | |
| LLY Eli Lilly | US$724.95 | 1.3% +US$8.4b | -9.7% | PE58.6x | |
| ABT Abbott Laboratories | US$133.05 | 3.5% +US$7.8b | 26.9% | PE17.2x |
