Investing IdeasBrowse All StocksMarkets

Have your own idea? Try our Stock Screener

Header cover image

U.S. Healthcare Sector Analysis

UpdatedNov 26, 2024
DataAggregated Company Financials
Companies1401
  • 7D3.0%
  • 3M-5.6%
  • 1Y12.7%
  • YTD4.8%

The Healthcare industry is up 3.0% in the last week, with Eli Lilly up 3.8%. In the last 12 months, the industry was up 13%. As for the next few years, earnings are expected to grow by 22% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 26 Nov 2024US$6.0tUS$2.9tUS$77.2b28.4x78.1x2.1x
Thu, 24 Oct 2024US$6.1tUS$2.8tUS$58.6b29.8x104.9x2.2x
Sat, 21 Sep 2024US$6.3tUS$2.8tUS$60.1b30.2x105.1x2.2x
Mon, 19 Aug 2024US$6.2tUS$2.8tUS$56.0b32.8x109.8x2.2x
Wed, 17 Jul 2024US$6.3tUS$2.8tUS$62.2b31.9x101.4x2.2x
Fri, 14 Jun 2024US$6.2tUS$2.8tUS$62.4b29.8x99.4x2.2x
Sun, 12 May 2024US$6.1tUS$2.8tUS$64.0b30.7x95.5x2.2x
Tue, 09 Apr 2024US$6.2tUS$2.8tUS$84.1b32.4x73.2x2.2x
Thu, 07 Mar 2024US$6.2tUS$2.8tUS$85.1b32.1x73.4x2.2x
Sat, 03 Feb 2024US$6.4tUS$2.8tUS$76.5b31.9x84.1x2.3x
Mon, 01 Jan 2024US$6.2tUS$2.8tUS$91.5b32.8x68.1x2.2x
Wed, 29 Nov 2023US$5.9tUS$2.8tUS$91.4b28x64x2.1x
Fri, 27 Oct 2023US$5.6tUS$2.8tUS$101.3b24.3x55.6x2x
Sun, 24 Sep 2023US$5.9tUS$2.8tUS$98.6b27.7x60x2.1x
Tue, 22 Aug 2023US$6.1tUS$2.8tUS$99.2b28x61.4x2.2x
Thu, 20 Jul 2023US$6.0tUS$2.7tUS$111.1b26.7x54.2x2.2x
Sat, 17 Jun 2023US$6.0tUS$2.7tUS$109.9b26.4x54.8x2.2x
Mon, 15 May 2023US$6.0tUS$2.7tUS$114.7b24.7x52.3x2.2x
Wed, 12 Apr 2023US$5.9tUS$2.5tUS$123.2b24.8x48.3x2.4x
Fri, 10 Mar 2023US$5.6tUS$2.5tUS$122.5b23.8x45.6x2.3x
Sun, 05 Feb 2023US$6.0tUS$2.5tUS$133.7b23.7x44.8x2.4x
Tue, 03 Jan 2023US$6.0tUS$2.5tUS$135.6b23.1x44.4x2.5x
Thu, 01 Dec 2022US$6.1tUS$2.4tUS$133.5b24x45.9x2.5x
Sat, 29 Oct 2022US$5.9tUS$2.4tUS$149.1b23x39.7x2.4x
Mon, 26 Sep 2022US$5.5tUS$2.4tUS$155.9b20.7x35.4x2.3x
Wed, 24 Aug 2022US$5.9tUS$2.4tUS$157.2b23x37.4x2.4x
Fri, 22 Jul 2022US$6.0tUS$2.6tUS$165.2b25.2x36.1x2.3x
Sun, 19 Jun 2022US$5.4tUS$2.6tUS$166.0b23.1x32.5x2.1x
Tue, 17 May 2022US$5.7tUS$2.6tUS$164.5b25x34.9x2.2x
Thu, 14 Apr 2022US$6.5tUS$2.5tUS$175.5b29.4x37.3x2.6x
Sat, 12 Mar 2022US$6.1tUS$2.5tUS$170.7b27.4x35.6x2.5x
Mon, 07 Feb 2022US$6.3tUS$2.4tUS$161.9b29.6x38.9x2.6x
Wed, 05 Jan 2022US$6.8tUS$2.4tUS$145.5b32.1x46.4x2.8x
Fri, 03 Dec 2021US$6.5tUS$2.4tUS$146.5b30.9x44.4x2.7x
Price to Earnings Ratio

44.4x


Total Market Cap: US$6.5tTotal Earnings: US$146.5bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 59.6x202220232024
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 78.1x which is higher than its 3-year average PE of 59.6x.
  • The 3-year average PS ratio of 2.3x is higher than the industry's current PS ratio of 2.1x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have declined 19% per year over the last three years.
  • Meanwhile revenues for these companies have grown 6.8% 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 Market2.16%
Healthcare2.98%
Life Sciences5.31%
Healthtech4.86%
Biotech4.04%
Healthcare Services3.34%
Pharma2.84%
Medical Equipment0.88%
Industry PE
  • Investors are most optimistic about the Life Sciences industry which is trading above its 3-year average PE ratio of 56.3x.
    • Analysts are expecting annual earnings growth of 18.4%, 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 31% 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 17% 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
LLY Eli LillyUS$755.003.8%
+US$25.0b		27.6%PE81.2x
ABBV AbbVieUS$177.066.5%
+US$19.0b		27.3%PE61.6x
UNH UnitedHealth GroupUS$605.832.7%
+US$14.9b		11.4%PE38.9x
MRK MerckUS$101.164.8%
+US$11.6b		-0.3%PE21.1x
AMGN AmgenUS$294.005.5%
+US$8.2b		11.2%PE37.4x
Simply Wall St™
Simply Wall Street Pty Ltd
Level 7, 320 Pitt Street, Sydney
Download on the App StoreGet it on Google Play
Popular Markets
USAUUKINCAZA
About UsCareersPlansLogin
Help CenterLatest CoveragePodcastsAffiliate ProgramBusiness & EnterpriseWhat's New
Financial Services GuideTerms and ConditionsPrivacy Policy
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

SAVA

US$4.30

Cassava Sciences

7D

-84.6%

1Y

-79.7%

MRK

US$101.16

Merck

7D

4.8%

1Y

-0.3%

BSX

US$89.25

Boston Scientific

7D

-1.3%

1Y

60.3%

VRTX

US$461.71

Vertex Pharmaceuticals

7D

-1.1%

1Y

31.8%

Vertex Pharma: Why I Am Buying This Dip

Nov 25

ABBV

US$177.06

AbbVie

7D

6.5%

1Y

27.3%

AbbVie: Upgrading To 'Strong Buy' After Pullback

Nov 22

REGN

US$749.51

Regeneron Pharmaceuticals

7D

-1.6%

1Y

-6.1%

Regeneron Pharmaceuticals, Inc.'s (NASDAQ:REGN) Price Is Out Of Tune With Earnings

Nov 22
Regeneron Pharmaceuticals, Inc.'s (NASDAQ:REGN) Price Is Out Of Tune With Earnings

PFE

US$26.17

Pfizer

7D

5.3%

1Y

-13.2%

Pfizer: High Dividend And Low Price Might Still Offset The Expanding Risks

Nov 21

LLY

US$755.00

Eli Lilly

7D

3.8%

1Y

27.6%

Eli Lilly Stock: Unexpected Developments (Rating Downgrade)

Nov 21

UNH

US$605.83

UnitedHealth Group

7D

2.7%

1Y

11.4%

UnitedHealth Group: Preparing For December Investor Day, Buy Reiterated

Nov 21

SYK

US$384.91

Stryker

7D

-1.2%

1Y

30.9%

At US$386, Is It Time To Put Stryker Corporation (NYSE:SYK) On Your Watch List?

Nov 21
At US$386, Is It Time To Put Stryker Corporation (NYSE:SYK) On Your Watch List?

CVS

US$60.08

CVS Health

7D

7.2%

1Y

-12.6%

AMGN

US$294.00

Amgen

7D

5.5%

1Y

11.2%

MDT

US$85.75

Medtronic

7D

-2.1%

1Y

8.5%

THC

US$143.32

Tenet Healthcare

7D

-6.6%

1Y

115.2%

Here's Why Tenet Healthcare (NYSE:THC) Has A Meaningful Debt Burden

Nov 17
Here's Why Tenet Healthcare (NYSE:THC) Has A Meaningful Debt Burden

HCA

US$325.62

HCA Healthcare

7D

-3.0%

1Y

29.5%

DHR

US$237.68

Danaher

7D

3.3%

1Y

8.0%

Understanding Danaher's Cautiousness

Oct 25