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U.S. Healthcare Sector Analysis

UpdatedMay 13, 2025
DataAggregated Company Financials
Companies1395
  • 7D-1.1%
  • 3M-8.1%
  • 1Y-7.2%
  • YTD-3.6%

Over the last 7 days, the Healthcare industry has dropped 4.1%, driven by a pullback from Eli Lilly of 11%. Meanwhile, Insulet actually outperformed within the industry, gaining 20% in the last week. Overall the industry is down 9.8% in 12 months. As for the next few years, earnings are expected to grow by 16% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 13 May 2025US$5.4tUS$3.0tUS$126.5b24.4x42.5x1.8x
Thu, 10 Apr 2025US$5.1tUS$2.6tUS$81.8b25.3x62.7x1.9x
Sat, 08 Mar 2025US$5.8tUS$2.6tUS$79.0b27.5x73.9x2.2x
Mon, 03 Feb 2025US$6.1tUS$2.9tUS$85.1b27.8x72x2.1x
Wed, 01 Jan 2025US$5.8tUS$2.9tUS$79.4b27.5x72.5x2x
Fri, 29 Nov 2024US$6.2tUS$2.9tUS$77.3b28.5x79.6x2.1x
Sun, 27 Oct 2024US$6.0tUS$2.8tUS$59.1b29.1x102.2x2.1x
Tue, 24 Sep 2024US$6.3tUS$2.8tUS$60.1b30.1x104.6x2.2x
Thu, 22 Aug 2024US$6.2tUS$2.8tUS$56.2b32x110.6x2.2x
Sat, 20 Jul 2024US$6.3tUS$2.8tUS$60.8b31.7x103.2x2.2x
Mon, 17 Jun 2024US$6.2tUS$2.8tUS$62.5b30x98.9x2.2x
Wed, 15 May 2024US$6.1tUS$2.8tUS$63.7b30.8x96x2.2x
Fri, 12 Apr 2024US$6.1tUS$2.8tUS$85.4b32.1x71.4x2.2x
Sun, 10 Mar 2024US$6.3tUS$2.8tUS$85.3b32.5x73.8x2.3x
Tue, 06 Feb 2024US$6.2tUS$2.8tUS$83.9b31.4x74.5x2.2x
Thu, 04 Jan 2024US$6.3tUS$2.8tUS$90.2b31.6x69.7x2.2x
Sat, 02 Dec 2023US$5.9tUS$2.8tUS$91.4b28.8x64.5x2.1x
Mon, 30 Oct 2023US$5.5tUS$2.8tUS$99.5b24.1x55.6x2x
Wed, 27 Sep 2023US$5.9tUS$2.8tUS$98.5b27.4x59.8x2.1x
Fri, 25 Aug 2023US$6.1tUS$2.8tUS$99.0b27.8x61.3x2.2x
Sun, 23 Jul 2023US$6.2tUS$2.7tUS$110.9b26.9x55.5x2.2x
Tue, 20 Jun 2023US$6.0tUS$2.7tUS$109.9b26.4x54.8x2.2x
Thu, 18 May 2023US$6.0tUS$2.7tUS$111.0b23.9x53.6x2.2x
Sat, 15 Apr 2023US$6.0tUS$2.5tUS$123.8b24.2x48.3x2.4x
Mon, 13 Mar 2023US$5.5tUS$2.5tUS$122.9b23.9x44.9x2.2x
Wed, 08 Feb 2023US$6.0tUS$2.5tUS$132.4b23.8x45.2x2.4x
Fri, 06 Jan 2023US$6.0tUS$2.5tUS$135.4b22.6x44.1x2.4x
Sun, 04 Dec 2022US$6.2tUS$2.4tUS$133.7b24.1x46.2x2.5x
Tue, 01 Nov 2022US$5.9tUS$2.4tUS$149.0b23.1x39.6x2.4x
Thu, 29 Sep 2022US$5.6tUS$2.4tUS$155.9b21.1x35.9x2.3x
Sat, 27 Aug 2022US$5.8tUS$2.4tUS$157.1b22.9x36.9x2.4x
Mon, 25 Jul 2022US$5.9tUS$2.6tUS$164.6b24.9x35.9x2.3x
Wed, 22 Jun 2022US$5.5tUS$2.6tUS$165.4b23x33.4x2.1x
Fri, 20 May 2022US$5.7tUS$2.6tUS$165.0b25.6x34.7x2.2x
Price to Earnings Ratio

34.7x


Total Market Cap: US$5.7tTotal Earnings: US$165.0bTotal Revenue: US$2.6tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 63.9x202320242025
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 42.4x 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 8.4% 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 Market3.92%
Healthcare-1.13%
Life Sciences3.19%
Medical Equipment2.84%
Healthtech0.58%
Biotech-2.58%
Healthcare Services-2.63%
Pharma-3.83%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 60.5x.
    • 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 better than its past earnings growth rate of 17% 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
ISRG Intuitive SurgicalUS$561.525.6%
+US$10.6b
47.4%PE81.3x
RGC Regencell Bioscience HoldingsUS$470.02406.1%
+US$4.9b
8,445.8%PB744.2x
PODD InsuletUS$316.6722.4%
+US$4.1b
96.7%PE55.4x
TMO Thermo Fisher ScientificUS$432.592.4%
+US$3.9b
-26.8%PE25.1x
HCA HCA HealthcareUS$363.284.0%
+US$3.3b
14.5%PE15.1x
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Latest News

LLY

US$755.57

Eli Lilly

7D

-8.0%

1Y

-0.3%

PODD

US$316.67

Insulet

7D

22.4%

1Y

96.7%

HIMS

US$55.21

Hims & Hers Health

7D

31.8%

1Y

328.3%

MRK

US$80.43

Merck

7D

-2.9%

1Y

-37.8%

VRTX

US$439.52

Vertex Pharmaceuticals

7D

-12.1%

1Y

2.2%

BMY

US$48.18

Bristol-Myers Squibb

7D

-3.8%

1Y

6.9%

ISRG

US$561.52

Intuitive Surgical

7D

5.6%

1Y

47.4%

ABBV

US$190.07

AbbVie

7D

-3.1%

1Y

17.9%

MDT

US$85.81

Medtronic

7D

2.8%

1Y

2.7%

HCA

US$363.28

HCA Healthcare

7D

4.0%

1Y

14.5%

TMO

US$432.59

Thermo Fisher Scientific

7D

2.4%

1Y

-26.8%

RGC

US$470.02

Regencell Bioscience Holdings

7D

406.1%

1Y

8,445.8%