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U.S. Healthcare Sector Analysis

UpdatedFeb 05, 2025
DataAggregated Company Financials
Companies1414
  • 7D-0.4%
  • 3M-1.3%
  • 1Y1.7%
  • YTD6.0%

Last week, the Healthcare industry hasn't moved much but AbbVie is up 8.7% in that time. Furthermore, the industry has been flat for the past year as well. As for the next few years, earnings are expected to grow by 18% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Wed, 27 Jul 2022US$6.0tUS$2.5tUS$164.4b25.1x36.2x2.4x
Fri, 24 Jun 2022US$5.8tUS$2.6tUS$165.6b24.1x34.8x2.2x
Sun, 22 May 2022US$5.8tUS$2.6tUS$164.9b25.8x35.2x2.2x
Tue, 19 Apr 2022US$6.4tUS$2.5tUS$175.1b28.7x36.5x2.6x
Thu, 17 Mar 2022US$6.3tUS$2.5tUS$170.8b28.4x37x2.5x
Sat, 12 Feb 2022US$6.3tUS$2.5tUS$162.2b30.4x38.7x2.5x
Price to Earnings Ratio

38.7x


Total Market Cap: US$6.3tTotal Earnings: US$162.2bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 61.6x202320242025
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 65.4x which is higher than its 3-year average PE of 61.6x.
  • The industry is trading close to its 3-year average PS ratio of 2.3x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have declined 17% per year over the last three years.
  • Meanwhile revenues for these companies have grown 6.2% 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-0.28%
Healthcare-0.37%
Biotech1.27%
Pharma-0.027%
Healthcare Services-0.076%
Medical Equipment-0.13%
Healthtech-0.15%
Life Sciences-4.48%
Industry PE
  • Investors are most optimistic about the Life Sciences industry which is trading above its 3-year average PE ratio of 58.4x.
    • Analysts are expecting annual earnings growth of 16.4%, which is higher than its past year's earnings decline of 4.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Healthtech industry, expecting annual earnings growth of 32% 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 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
ABBV AbbVieUS$189.958.7%
+US$26.8b		9.6%PE78.5x
LLY Eli LillyUS$826.072.6%
+US$19.0b		17.2%PE88.9x
VRTX Vertex PharmaceuticalsUS$482.289.4%
+US$10.7b		15.9%PS11.7x
JNJ Johnson & JohnsonUS$153.492.1%
+US$7.5b		-2.9%PE26.3x
GILD Gilead SciencesUS$97.994.4%
+US$5.2b		26.1%PE969.2x
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ABT

US$129.10

Abbott Laboratories

7D

1.3%

1Y

13.2%

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DHR

US$215.01

Danaher

7D

-13.2%

1Y

-13.4%

MRK

US$90.74

Merck

7D

-6.9%

1Y

-28.5%

PFE

US$25.87

Pfizer

7D

-3.3%

1Y

-5.9%

IDXX

US$465.03

IDEXX Laboratories

7D

11.3%

1Y

-18.0%

BDX

US$242.42

Becton Dickinson

7D

-2.7%

1Y

1.6%

GILD

US$97.99

Gilead Sciences

7D

4.4%

1Y

26.1%

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MRNA

US$34.17

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7D

-24.0%

1Y

-65.8%

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LLY

US$826.07

Eli Lilly

7D

2.6%

1Y

17.2%

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Feb 02
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CI

US$291.46

Cigna Group

7D

-3.8%

1Y

-11.0%

AMGN

US$289.02

Amgen

7D

3.1%

1Y

-8.6%

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Feb 01
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ABBV

US$189.95

AbbVie

7D

8.7%

1Y

9.6%

VRTX

US$482.28

Vertex Pharmaceuticals

7D

9.4%

1Y

15.9%

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Jan 31

JNJ

US$153.49

Johnson & Johnson

7D

2.1%

1Y

-2.9%

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Jan 30

TEVA

US$17.06

Teva Pharmaceutical Industries

7D

-20.8%

1Y

39.3%

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Jan 30

SMMT

US$20.62

Summit Therapeutics

7D

-12.3%

1Y

402.9%

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