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U.S. Healthcare Sector Analysis

UpdatedJul 11, 2026
DataAggregated Company Financials
Companies1409
  • 7D-1.5%
  • 3M11.2%
  • 1Y22.2%
  • YTD5.3%

Over the last 7 days, the Healthcare industry has dropped 1.5%, driven by declines in AbbVie and Eli Lilly of 5.0% and 2.1%, respectively. On the other hand Crinetics Pharmaceuticals is actually up 98%. In the past year, the industry has gained 22%. Looking forward, earnings are forecast to grow by 18% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 11 Jul 2026US$7.0tUS$3.3tUS$122.0b25x57.2x2.1x
Mon, 08 Jun 2026US$6.4tUS$3.3tUS$122.5b23.6x52.6x1.9x
Wed, 06 May 2026US$6.2tUS$3.3tUS$117.5b23.8x52.6x1.9x
Fri, 03 Apr 2026US$6.2tUS$3.3tUS$128.3b22.2x48.5x1.9x
Sun, 01 Mar 2026US$6.7tUS$3.3tUS$127.5b25.5x52.2x2x
Tue, 27 Jan 2026US$6.6tUS$3.2tUS$130.6b29.1x50.6x2.1x
Thu, 25 Dec 2025US$6.6tUS$3.2tUS$135.2b26.4x48.5x2.1x
Sat, 22 Nov 2025US$6.2tUS$3.2tUS$133.4b25.8x46.7x2x
Mon, 20 Oct 2025US$6.0tUS$3.1tUS$140.4b24.8x42.5x1.9x
Wed, 17 Sep 2025US$5.7tUS$3.1tUS$137.5b23.8x41.2x1.8x
Fri, 15 Aug 2025US$5.6tUS$3.1tUS$136.9b23.4x40.5x1.8x
Sun, 13 Jul 2025US$5.5tUS$3.0tUS$127.9b24x43.3x1.8x
Tue, 10 Jun 2025US$5.5tUS$3.0tUS$127.2b23.8x43.2x1.8x
Thu, 08 May 2025US$5.4tUS$3.0tUS$127.1b25x42.7x1.8x
Sat, 05 Apr 2025US$5.5tUS$2.6tUS$82.1b24.7x67x2.1x
Mon, 03 Mar 2025US$5.9tUS$2.6tUS$79.3b27.5x74x2.2x
Wed, 29 Jan 2025US$6.2tUS$2.9tUS$85.5b27.9x72x2.1x
Fri, 27 Dec 2024US$5.9tUS$2.9tUS$78.3b27.6x74.8x2x
Sun, 24 Nov 2024US$6.0tUS$2.9tUS$77.3b28.2x78.1x2.1x
Tue, 22 Oct 2024US$6.2tUS$2.8tUS$58.7b32.1x106.4x2.2x
Thu, 19 Sep 2024US$6.3tUS$2.8tUS$60.2b31.1x104.5x2.2x
Sat, 17 Aug 2024US$6.1tUS$2.8tUS$56.1b32.8x109.5x2.2x
Mon, 15 Jul 2024US$6.3tUS$2.8tUS$62.2b31.2x101.7x2.2x
Wed, 12 Jun 2024US$6.2tUS$2.8tUS$63.6b30.2x97.9x2.2x
Fri, 10 May 2024US$6.1tUS$2.8tUS$62.9b30.6x96.7x2.2x
Sun, 07 Apr 2024US$6.2tUS$2.8tUS$84.1b32.4x73.2x2.2x
Tue, 05 Mar 2024US$6.3tUS$2.8tUS$85.0b31x74x2.3x
Thu, 01 Feb 2024US$6.4tUS$2.8tUS$80.6b31.6x79.2x2.3x
Sat, 30 Dec 2023US$6.2tUS$2.8tUS$91.5b32.6x68.2x2.2x
Mon, 27 Nov 2023US$5.9tUS$2.8tUS$91.4b28.6x64.4x2.1x
Wed, 25 Oct 2023US$5.7tUS$2.8tUS$99.6b24.8x57.3x2x
Fri, 22 Sep 2023US$5.9tUS$2.8tUS$98.6b27.4x60.1x2.1x
Sun, 20 Aug 2023US$6.1tUS$2.8tUS$99.2b27.9x61.4x2.2x
Tue, 18 Jul 2023US$6.0tUS$2.7tUS$110.9b26.1x54x2.2x
Price to Earnings Ratio

54x


Total Market Cap: US$6.0tTotal Earnings: US$110.9bTotal Revenue: US$2.7tTotal 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 57.2x which is lower than its 3-year average PE of 65.5x.
  • 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 grown 3.2% per year over the last three years.
  • Revenues for these companies have grown 6.7% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

US Market0.74%
Healthcare-1.52%
Life Sciences0.26%
Healthcare Services-0.37%
Medical Equipment-1.34%
Healthtech-1.50%
Pharma-2.04%
Biotech-2.37%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 56.1x.
    • Analysts are expecting annual earnings growth of 16.9%, which is higher than its past year's earnings growth of 5.2% 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 55% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 15% 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
CRNX Crinetics PharmaceuticalsUS$83.5897.9%
+US$4.4b		161.8%PS487.7x
MCK McKessonUS$805.962.5%
+US$2.3b		13.6%PE19.8x
BBIO BridgeBio PharmaUS$85.8911.3%
+US$1.7b		84.8%PS29x
CI Cigna GroupUS$293.462.0%
+US$1.5b		-3.2%PE12.3x
DXCM DexComUS$74.965.2%
+US$1.4b		-10.1%PE31.1x

Latest News

BBIO
US$85.89
BridgeBio Pharma
7D
11.3%
1Y
84.8%
MRK
US$123.54
Merck
7D
-4.6%
1Y
48.2%
MRNA
US$68.27
Moderna
7D
-14.4%
1Y
102.9%
DXCM
US$74.96
DexCom
7D
5.2%
1Y
-10.1%
ABBV
US$248.08
AbbVie
7D
-5.0%
1Y
28.9%
Narrative Update • Jul 10

ABBV: Future Returns Will Depend On Apogee Deal And Broader Immunology Expansion

AbbVie’s refreshed analyst price target framework edges higher to about $259 from roughly $254, with analysts pointing to updated Q2 models, recent target hikes across several firms, and added confidence around the Apogee acquisition’s immunology and respiratory potential as key supports for the revision. Analyst Commentary Recent research on AbbVie centers on two main themes, the refreshed Q2 earnings models and the planned Apogee Therapeutics acquisition.
AMGN
US$363.39
Amgen
7D
-2.9%
1Y
23.1%
Narrative Update • Jul 10

AMGN: IRS Dispute And Regulatory Setbacks Will Pressure Future Returns

Amgen's updated analyst price target now reflects a fair value estimate of $252.61. Analysts point to refined revenue and margin assumptions, a slightly higher discount rate, and sector-level research that highlights both supportive biotech conditions and company-specific model updates following recent earnings and regulatory disclosures.
TMO
US$527.05
Thermo Fisher Scientific
7D
0.7%
1Y
21.2%
Narrative Update • Jul 09

TMO: AI Tools And Biopharma Collaborations Will Drive Future Performance

Thermo Fisher Scientific's analyst price target has been trimmed slightly, with the fair value estimate moving from $611.56 to about $590.77 as analysts factor in a modestly higher discount rate and slightly softer long term revenue growth and margin assumptions, alongside a mix of cautious sector views and continued confidence in the company's role across life science tools and diagnostics. Analyst Commentary Recent research on Thermo Fisher Scientific shows a mix of optimism and caution, with several firms updating price targets, ratings, and sector views as they reassess growth drivers, capital spending trends, and long term organic growth expectations.
VRTX
US$485.39
Vertex Pharmaceuticals
7D
-8.1%
1Y
3.5%
Narrative Update • Jul 08

VRTX: Rich Crinetics Deal Will Weigh On Future Risk Reward Profile

Vertex Pharmaceuticals' fair value estimate has been adjusted higher by about $9.69 to $423.75 as analysts factor in updated assumptions on revenue growth, margins, and future P/E following the Crinetics acquisition and a series of upward price target revisions, including recent moves to $570 at RBC Capital and $350 at Baird. Analyst Commentary Recent research on Vertex Pharmaceuticals clusters around the planned Crinetics acquisition and how it reshapes the company’s pipeline mix, capital deployment, and earnings profile.
JNJ
US$256.98
Johnson & Johnson
7D
-2.3%
1Y
63.8%
MCK
US$805.96
McKesson
7D
2.5%
1Y
13.6%
Seeking Alpha • Jul 08

McKesson Checks All The Boxes To Survive And Prosper In A Weak Economy, But There's A Big Catch

Summary McKesson is highlighted as a stable portfolio holding with regular moderate growth amid a challenging, overvalued market environment. A major correction could impact MCK alongside the broader market. Despite broad market risks, I seek to maximize results by selectively holding resilient stocks like MCK. Strategic positioning may limit damage in a bear market, and this article uses MCK as a case study for navigating potential downturns. Most future articles on individual stocks may need to consider the potential impact of AI on the stock and its industry. Companies that are "middlemen" in a "distributor" business like MCK may be particularly vulnerable to competition from agentic AI, which is faster, cheaper, and equally effective. Read the full article on Seeking Alpha
SYK
US$329.78
Stryker
7D
1.0%
1Y
-15.3%
Seeking Alpha • Jul 08

Stryker: Medtech On Sale, Benefiting From Industry Growth

Summary Stryker Corporation offers a compelling medtech investment, benefiting from robust industry growth and an innovation-led strategy. SYK trades at a 13% discount to fair value, with a forward P/E of 20.1 versus a 10-year average of 25.6. Consensus expects SYK’s adjusted diluted EPS to compound at 11.2% annually through 2028, supporting high single-digit dividend growth. Key risks include cybersecurity vulnerabilities and fierce competition, but SYK’s diversified portfolio and disciplined capital allocation underpin its long-term outlook. Read the full article on Seeking Alpha
COR
US$303.44
Cencora
7D
2.3%
1Y
2.8%
Narrative Update • Jul 08

COR: Insider Buying And Fair Value View Will Shape Upcoming Share Performance

Analysts have nudged their price target for Cencora higher from $280.00 to about $288.21, reflecting updated assumptions around fair value, discount rate, revenue growth, profit margins, and future price-to-earnings (P/E) expectations. What’s in the News for Cencora Cencora stock moved 3.6% higher on June 23, 2026, alongside commentary that the shares are viewed as modestly undervalued relative to one intrinsic value estimate and supported by what sources describe as solid business fundamentals.
CRNX
US$83.58
Crinetics Pharmaceuticals
7D
97.9%
1Y
161.8%
ISRG
US$406.78
Intuitive Surgical
7D
-4.5%
1Y
-20.6%
Narrative Update • Jul 07

ISRG: Procedure Momentum And Sector Reset Will Drive 2026 Upside

Intuitive Surgical's analyst price target has been reduced by $32.56 to $717.44 as analysts temper fair value, revenue growth, and margin assumptions in light of lower utilization concerns, inflation headwinds, and a reset in medtech sector valuations. Analyst Commentary Recent research coverage on Intuitive Surgical shows a clear reset in expectations, but it also highlights that some bullish analysts still see meaningful long term potential in the stock, even as they factor in lower utilization and inflation pressures across medtech.
CI
US$293.46
Cigna Group
7D
2.0%
1Y
-3.2%
LLY
US$1,188.58
Eli Lilly
7D
-2.1%
1Y
49.9%