Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Healthcare Sector Analysis

UpdatedJul 20, 2025
DataAggregated Company Financials
Companies1404
  • 7D-2.3%
  • 3M0.8%
  • 1Y-11.9%
  • YTD-5.8%

Over the last 7 days, the Healthcare industry has dropped 2.3%, driven by Eli Lilly declining 3.5%. The industry has fallen 12% in the last year. As for the next few years, earnings are expected to grow by 15% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 21 Jul 2025US$5.4tUS$3.0tUS$128.8b22.7x42x1.8x
Wed, 18 Jun 2025US$5.5tUS$3.0tUS$127.4b22.6x43.5x1.8x
Fri, 16 May 2025US$5.2tUS$3.0tUS$125.8b23.2x41.7x1.7x
Sun, 13 Apr 2025US$5.3tUS$2.6tUS$82.2b24.9x64.7x2x
Tue, 11 Mar 2025US$5.8tUS$2.6tUS$78.7b27.4x74x2.2x
Thu, 06 Feb 2025US$5.9tUS$2.6tUS$88.1b27.5x67.1x2.2x
Sat, 04 Jan 2025US$5.8tUS$2.9tUS$79.3b27.3x72.7x2x
Mon, 02 Dec 2024US$6.2tUS$2.9tUS$77.3b28.8x79.8x2.1x
Wed, 30 Oct 2024US$6.1tUS$2.8tUS$66.3b29.5x91.3x2.1x
Fri, 27 Sep 2024US$6.2tUS$2.8tUS$60.0b29.9x103.2x2.2x
Sun, 25 Aug 2024US$6.3tUS$2.8tUS$56.4b31.6x111.1x2.2x
Tue, 23 Jul 2024US$6.3tUS$2.8tUS$60.7b31.9x103.5x2.2x
Thu, 20 Jun 2024US$6.2tUS$2.8tUS$62.5b29.9x98.5x2.2x
Sat, 18 May 2024US$6.2tUS$2.8tUS$64.2b30.5x97x2.2x
Mon, 15 Apr 2024US$6.0tUS$2.8tUS$85.4b31.9x70x2.1x
Wed, 13 Mar 2024US$6.3tUS$2.8tUS$85.3b32.4x73.6x2.3x
Fri, 09 Feb 2024US$6.2tUS$2.8tUS$76.5b31.3x80.6x2.2x
Sun, 07 Jan 2024US$6.3tUS$2.8tUS$90.0b30.9x70.1x2.2x
Tue, 05 Dec 2023US$5.9tUS$2.8tUS$91.4b29.2x65x2.1x
Thu, 02 Nov 2023US$5.6tUS$2.8tUS$93.3b24.6x60x2x
Sat, 30 Sep 2023US$5.9tUS$2.8tUS$98.6b27.6x59.8x2.1x
Mon, 28 Aug 2023US$6.1tUS$2.8tUS$99.0b27.7x61.6x2.2x
Wed, 26 Jul 2023US$6.1tUS$2.7tUS$110.1b27x55.6x2.2x
Fri, 23 Jun 2023US$6.0tUS$2.7tUS$109.8b26.6x54.8x2.2x
Sun, 21 May 2023US$6.0tUS$2.7tUS$110.8b24.2x53.9x2.2x
Tue, 18 Apr 2023US$6.0tUS$2.5tUS$123.6b24.5x48.4x2.4x
Thu, 16 Mar 2023US$5.6tUS$2.5tUS$122.4b24x46x2.3x
Sat, 11 Feb 2023US$5.9tUS$2.5tUS$130.2b23.8x45.6x2.4x
Mon, 09 Jan 2023US$6.0tUS$2.5tUS$135.4b22.7x44.4x2.5x
Wed, 07 Dec 2022US$6.0tUS$2.4tUS$133.7b23.3x45.2x2.5x
Fri, 04 Nov 2022US$5.8tUS$2.4tUS$150.0b22.3x38.7x2.4x
Sun, 02 Oct 2022US$5.5tUS$2.4tUS$155.7b21.2x35.2x2.3x
Tue, 30 Aug 2022US$5.7tUS$2.4tUS$157.1b22.7x36.5x2.4x
Thu, 28 Jul 2022US$6.0tUS$2.6tUS$164.3b24.8x36.4x2.3x
Price to Earnings Ratio

36.4x


Total Market Cap: US$6.0tTotal Earnings: US$164.3bTotal Revenue: US$2.6tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 64.4x202320242025
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 42.0x which is lower than its 3-year average PE of 64.4x.
  • 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 7.8% per year over the last three years.
  • Meanwhile revenues for these companies have grown 5.3% 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 Market0.93%
Healthcare-2.27%
Healthtech0.45%
Biotech-0.44%
Pharma-1.09%
Medical Equipment-1.56%
Life Sciences-5.68%
Healthcare Services-5.98%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 61.8x.
    • Analysts are expecting annual earnings growth of 16.8%, which is higher than its past year's earnings decline of 6.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 23% 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
JNJ Johnson & JohnsonUS$164.364.8%
+US$18.1b		6.6%PE17.5x
ONC BeOne MedicinesUS$291.9315.8%
+US$4.7b		81.4%PS8.3x
RMD ResMedUS$261.072.7%
+US$1.0b		26.0%PE29.1x
CRSP CRISPR TherapeuticsUS$65.1315.4%
+US$799.1m		15.8%PS158.6x
SSII SS Innovations InternationalUS$8.4076.8%
+US$706.7m		97.6%PS73.5x

Latest News

JNJ
US$164.36
Johnson & Johnson
7D
4.8%
1Y
6.6%
ELV
US$276.45
Elevance Health
7D
-18.7%
1Y
-45.1%
ABT
US$124.42
Abbott Laboratories
7D
-5.8%
1Y
20.0%
ALNY
US$320.52
Alnylam Pharmaceuticals
7D
1.5%
1Y
36.0%
TMO
US$404.94
Thermo Fisher Scientific
7D
-4.8%
1Y
-25.9%
ONC
US$291.93
BeOne Medicines
7D
15.8%
1Y
81.4%
MRK
US$79.31
Merck
7D
-5.2%
1Y
-36.9%
ABBV
US$184.85
AbbVie
7D
-3.5%
1Y
6.5%
DHR
US$188.07
Danaher
7D
-4.9%
1Y
-25.0%

Is Danaher Corporation (NYSE:DHR) Trading At A 33% Discount?

Jul 12
Is Danaher Corporation (NYSE:DHR) Trading At A 33% Discount?
SSII
US$8.40
SS Innovations International
7D
76.8%
1Y
97.6%
UNH
US$282.14
UnitedHealth Group
7D
-6.1%
1Y
-49.5%
LLY
US$762.18
Eli Lilly
7D
-4.6%
1Y
-12.0%
RMD
US$261.07
ResMed
7D
2.7%
1Y
26.0%
SMMT
US$26.20
Summit Therapeutics
7D
3.1%
1Y
163.1%
MRUS
US$63.26
Merus
7D
13.7%
1Y
13.4%

Merus N.V.: Making Progress

Jun 29
CRSP
US$65.13
CRISPR Therapeutics
7D
15.4%
1Y
15.8%