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U.S. Healthcare Sector Analysis

UpdatedApr 02, 2025
DataAggregated Company Financials
Companies1420
  • 7D-2.8%
  • 3M-0.3%
  • 1Y-4.6%
  • YTD-0.5%

Over the last 7 days, the Healthcare industry has dropped 2.8%, driven by Eli Lilly declining 5.5%. Overall the industry is down 4.6% in 12 months. 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
Thu, 03 Apr 2025US$5.7tUS$2.6tUS$81.6b26.3x69.4x2.1x
Sat, 01 Mar 2025US$5.8tUS$2.6tUS$79.3b27.5x73.2x2.2x
Mon, 27 Jan 2025US$6.0tUS$2.9tUS$85.5b27.9x70.7x2.1x
Wed, 25 Dec 2024US$5.8tUS$2.9tUS$78.3b27.4x74.5x2x
Fri, 22 Nov 2024US$6.0tUS$2.9tUS$77.0b27.9x77.6x2x
Sun, 20 Oct 2024US$6.2tUS$2.8tUS$58.8b32.2x106.2x2.2x
Tue, 17 Sep 2024US$6.3tUS$2.8tUS$60.2b30.6x105.1x2.2x
Thu, 15 Aug 2024US$6.1tUS$2.8tUS$55.7b30x109.1x2.2x
Sat, 13 Jul 2024US$6.3tUS$2.8tUS$62.2b31.2x101.1x2.2x
Mon, 10 Jun 2024US$6.2tUS$2.8tUS$63.6b30x97.5x2.2x
Wed, 08 May 2024US$6.1tUS$2.8tUS$64.8b32x94.3x2.2x
Fri, 05 Apr 2024US$6.2tUS$2.8tUS$83.9b32.1x73.6x2.2x
Sun, 03 Mar 2024US$6.3tUS$2.8tUS$85.0b31.2x74.1x2.3x
Tue, 30 Jan 2024US$6.3tUS$2.8tUS$90.7b32x69.8x2.2x
Thu, 28 Dec 2023US$6.2tUS$2.8tUS$91.5b33.1x68x2.2x
Sat, 25 Nov 2023US$5.9tUS$2.8tUS$91.4b28.6x64.4x2.1x
Mon, 23 Oct 2023US$5.7tUS$2.8tUS$99.6b25.6x57.7x2.1x
Wed, 20 Sep 2023US$6.0tUS$2.8tUS$98.6b28.3x60.9x2.2x
Fri, 18 Aug 2023US$6.1tUS$2.8tUS$99.3b28.2x61.9x2.2x
Sun, 16 Jul 2023US$6.0tUS$2.7tUS$110.9b26.3x54x2.2x
Tue, 13 Jun 2023US$6.0tUS$2.7tUS$110.0b25.8x54.4x2.2x
Thu, 11 May 2023US$6.0tUS$2.7tUS$111.8b24.9x54x2.2x
Sat, 08 Apr 2023US$5.9tUS$2.5tUS$121.9b24.2x48.6x2.4x
Mon, 06 Mar 2023US$5.8tUS$2.5tUS$122.5b25.3x47.3x2.3x
Wed, 01 Feb 2023US$6.0tUS$2.5tUS$133.9b23.8x44.5x2.4x
Fri, 30 Dec 2022US$6.0tUS$2.5tUS$135.9b23x44.4x2.5x
Sun, 27 Nov 2022US$6.0tUS$2.4tUS$133.6b24.1x45.1x2.5x
Tue, 25 Oct 2022US$5.7tUS$2.4tUS$156.7b21.6x36.1x2.3x
Thu, 22 Sep 2022US$5.6tUS$2.4tUS$156.1b20.8x35.6x2.3x
Sat, 20 Aug 2022US$6.0tUS$2.4tUS$157.0b24x38.4x2.5x
Mon, 18 Jul 2022US$5.9tUS$2.6tUS$165.3b24.9x35.8x2.3x
Wed, 15 Jun 2022US$5.4tUS$2.6tUS$165.3b23.4x32.6x2.1x
Fri, 13 May 2022US$5.6tUS$2.6tUS$166.8b23.6x33.4x2.2x
Sun, 10 Apr 2022US$6.7tUS$2.5tUS$174.7b29.9x38.3x2.7x
Price to Earnings Ratio

38.3x


Total Market Cap: US$6.7tTotal Earnings: US$174.7bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 63.3x202320242025
Current Industry PE
  • Investors are optimistic on the American Healthcare industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 69.4x which is higher than its 3-year average PE of 63.3x.
  • The industry is trading close to its 3-year average PS ratio of 2.2x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have declined 22% per year over the last three years.
  • Meanwhile revenues for these companies have grown 2.2% 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-2.98%
Healthcare-2.82%
Healthcare Services1.53%
Medical Equipment-0.73%
Pharma-3.83%
Life Sciences-5.96%
Biotech-6.42%
Healthtech-6.88%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 59.8x.
    • Analysts are expecting annual earnings growth of 15.7%, which is higher than its past year's earnings decline of 3.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 28% over the next 5 years.
  • However this is lower than its past earnings growth rate of 40% per year.
  • In contrast, the Medical Equipment industry is expected to see its earnings grow by 13% 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
ABT Abbott LaboratoriesUS$131.934.2%
+US$9.2b		18.6%PE17.1x
ABBV AbbVieUS$205.191.9%
+US$6.9b		15.7%PE85.6x
UNH UnitedHealth GroupUS$523.201.0%
+US$4.6b		13.8%PE33.2x
GILD Gilead SciencesUS$111.283.1%
+US$4.2b		54.4%PE288.7x
MCK McKessonUS$693.534.6%
+US$3.8b		28.4%PE30.8x
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Latest News

MCK

US$693.53

McKesson

7D

4.6%

1Y

28.4%

TMO

US$489.06

Thermo Fisher Scientific

7D

-4.8%

1Y

-15.1%

SYK

US$377.46

Stryker

7D

2.6%

1Y

7.5%

CORT

US$83.81

Corcept Therapeutics

7D

46.8%

1Y

226.7%

ABBV

US$205.19

AbbVie

7D

1.9%

1Y

15.7%

PCVX

US$32.23

Vaxcyte

7D

-55.2%

1Y

-50.0%

PFE

US$24.54

Pfizer

7D

-4.0%

1Y

-10.9%

ABT

US$131.93

Abbott Laboratories

7D

4.2%

1Y

18.6%

MRK

US$86.60

Merck

7D

-1.7%

1Y

-33.3%

CI

US$331.92

Cigna Group

7D

3.3%

1Y

-8.1%

The Cigna Group: Compelling Exposure To Diversified Healthcare At A Discount Price

Mar 31

LLY

US$805.23

Eli Lilly

7D

-5.5%

1Y

5.4%

DHR

US$205.16

Danaher

7D

-2.5%

1Y

-16.0%

Danaher: Some Near-Term Headwinds, But Good Long-Term Prospects And Low Valuations

Mar 31

VRTX

US$484.74

Vertex Pharmaceuticals

7D

-4.8%

1Y

18.4%

JNJ

US$155.36

Johnson & Johnson

7D

-3.9%

1Y

0.7%

Johnson & Johnson Needs Time To Consolidate (Technical Analysis And Downgrade)

Mar 28

GILD

US$111.28

Gilead Sciences

7D

3.1%

1Y

54.4%

UNH

US$523.20

UnitedHealth Group

7D

1.0%

1Y

13.8%

UnitedHealth Group: Will 2025 Finally Be A Normal Year?

Mar 27