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U.S. Healthcare Sector Analysis

UpdatedSep 05, 2025
DataAggregated Company Financials
Companies1364
  • 7D0.7%
  • 3M2.9%
  • 1Y-11.0%
  • YTD-1.2%

The Healthcare industry has stayed flat over the last week. Unfortunately though, the industry is down 11% over the past 12 months. Looking forward, earnings are forecast to grow by 15% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 06 Sep 2025US$5.7tUS$3.1tUS$137.6b22.8x41.4x1.8x
Mon, 04 Aug 2025US$5.4tUS$3.1tUS$126.7b22.7x42.7x1.8x
Wed, 02 Jul 2025US$5.5tUS$3.0tUS$127.5b24.4x43.1x1.8x
Fri, 30 May 2025US$5.3tUS$3.0tUS$127.3b23x41.9x1.8x
Sun, 27 Apr 2025US$5.4tUS$2.7tUS$118.5b24.9x45.6x2x
Tue, 25 Mar 2025US$5.7tUS$2.6tUS$81.8b27.1x69.9x2.2x
Thu, 20 Feb 2025US$5.8tUS$2.6tUS$82.1b26.1x70.8x2.2x
Sat, 18 Jan 2025US$5.9tUS$2.9tUS$79.0b27.7x74.5x2x
Mon, 16 Dec 2024US$5.9tUS$2.9tUS$77.7b28.3x76x2x
Wed, 13 Nov 2024US$6.3tUS$2.9tUS$76.7b28.4x82.3x2.2x
Fri, 11 Oct 2024US$6.2tUS$2.8tUS$60.0b29.5x103.3x2.2x
Sun, 08 Sep 2024US$6.2tUS$2.8tUS$60.4b30.5x102.3x2.2x
Tue, 06 Aug 2024US$6.4tUS$2.9tUS$64.1b30.1x99.1x2.2x
Thu, 04 Jul 2024US$6.1tUS$2.8tUS$62.3b29.6x97.5x2.2x
Sat, 01 Jun 2024US$6.0tUS$2.8tUS$64.0b29.9x94.1x2.1x
Mon, 29 Apr 2024US$6.0tUS$2.8tUS$68.3b31.5x87.7x2.1x
Wed, 27 Mar 2024US$6.2tUS$2.8tUS$82.3b31.6x75.6x2.2x
Fri, 23 Feb 2024US$6.2tUS$2.8tUS$86.8b30.7x71.8x2.2x
Sun, 21 Jan 2024US$6.3tUS$2.8tUS$90.8b32.4x69.4x2.2x
Tue, 19 Dec 2023US$6.1tUS$2.8tUS$91.5b32.1x66.5x2.2x
Thu, 16 Nov 2023US$5.8tUS$2.8tUS$90.9b28x63.5x2.1x
Sat, 14 Oct 2023US$5.9tUS$2.8tUS$98.8b25.7x59.4x2.1x
Mon, 11 Sep 2023US$6.1tUS$2.8tUS$98.6b27.5x61.8x2.2x
Wed, 09 Aug 2023US$6.2tUS$2.8tUS$99.3b28.1x62.3x2.2x
Fri, 07 Jul 2023US$5.9tUS$2.7tUS$110.3b25.9x53.6x2.2x
Sun, 04 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Tue, 02 May 2023US$6.0tUS$2.5tUS$118.4b24.9x50.8x2.4x
Thu, 30 Mar 2023US$5.7tUS$2.5tUS$123.7b23.6x45.9x2.3x
Sat, 25 Feb 2023US$5.7tUS$2.5tUS$123.7b24.4x46.4x2.3x
Mon, 23 Jan 2023US$6.0tUS$2.5tUS$135.9b23.3x44.2x2.4x
Wed, 21 Dec 2022US$6.0tUS$2.5tUS$135.7b22.9x43.8x2.4x
Fri, 18 Nov 2022US$5.9tUS$2.4tUS$134.3b22.8x43.7x2.4x
Sun, 16 Oct 2022US$5.5tUS$2.4tUS$155.7b21.3x35.4x2.3x
Tue, 13 Sep 2022US$6.0tUS$2.4tUS$156.3b23.4x38.2x2.5x
Price to Earnings Ratio

38.2x


Total Market Cap: US$6.0tTotal Earnings: US$156.3bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 64.6x202320242025
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 41.4x which is lower than its 3-year average PE of 64.6x.
  • 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 4.1% per year over the last three years.
  • Meanwhile revenues for these companies have grown 8.8% 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 Market-0.008%
Healthcare0.72%
Healthcare Services1.59%
Biotech1.34%
Pharma0.97%
Medical Equipment0.15%
Life Sciences-0.87%
Healthtech-1.11%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 57.4x.
    • Analysts expect its future annual earnings growth (12.9%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 26% over the next 5 years.
  • However this is lower than its past earnings growth rate of 69% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 12% 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
UNH UnitedHealth GroupUS$315.391.8%
+US$5.0b		-47.2%PE13.4x
UTHR United TherapeuticsUS$400.5231.4%
+US$4.3b		15.9%PE14.6x
ONC BeOne MedicinesUS$341.8011.7%
+US$3.9b		78.7%PS8.2x
HCA HCA HealthcareUS$420.774.2%
+US$3.9b		8.5%PE16.5x
ABBV AbbVieUS$212.561.0%
+US$3.8b		9.9%PE100.9x

Latest News

ABBV
US$212.56
AbbVie
7D
1.0%
1Y
9.9%
IONS
US$61.23
Ionis Pharmaceuticals
7D
43.6%
1Y
30.6%
GH
US$60.13
Guardant Health
7D
-10.8%
1Y
153.4%
ELV
US$313.64
Elevance Health
7D
-1.6%
1Y
-42.1%

AI-Enabled Analytics And Value-Based Care Will Ensure Future Stability

Following disappointing Q2 results and a significant EPS guidance cut for 2025, analysts remain cautious on Elevance Health due to earnings uncertainty and operational risks—despite some offsetting segmental strengths and longer-term positives—resulting in an unchanged consensus price target of $368.44. Analyst Commentary Bearish analysts lowered price targets following Elevance Health’s Q2 report, citing a larger-than-expected EPS guidance cut for 2025, lingering questions about the true earnings floor, and persistent volatility in cost trends.
LLY
US$727.21
Eli Lilly
7D
-0.7%
1Y
-19.4%

Emerging Markets And Digital Health Will Fuel Future Expansion

Analysts remain bullish on Eli Lilly due to strong Phase 3 obesity data and pipeline momentum, outweighing isolated setbacks in heart failure, and have maintained the consensus price target at $888.52. Analyst Commentary Bullish analysts highlight the strong Phase 3 data for orforglipron in obesity and diabetes (ATTAIN-1 and ATTAIN-2), demonstrating efficacy and tolerability at or above expectations, positioning Eli Lilly favorably versus oral and injectable competitors.
JNJ
US$178.43
Johnson & Johnson
7D
0.7%
1Y
8.5%

US 55 Billion Investment Will Drive Breakthrough Therapies

Johnson & Johnson’s unchanged analyst price target reflects balanced sentiment, with bulls encouraged by Q2 earnings strength, improved guidance, and ongoing growth expectations, while bears flag regulatory and clinical trial risks, resulting in fair value holding steady at $177.47. Analyst Commentary Bullish analysts raised price targets following Johnson & Johnson’s Q2 earnings beat, with expectations for continued top- and bottom-line growth into 2026 and potential to exceed guidance for Innovative Medicine sales CAGR.
ONC
US$341.80
BeOne Medicines
7D
11.7%
1Y
78.7%

Oncology Trials And Global Expansion Will Unlock Future Markets

The consensus analyst price target for BeOne Medicines was raised to $363.30, primarily driven by strong Brukinsa Q2 sales, improved forward revenue guidance, and ongoing pipeline progress. Analyst Commentary Bullish analysts cite robust Q2 sales growth, particularly from Brukinsa in the US and EU, as the main driver for upward price target revisions.
UTHR
US$400.52
United Therapeutics
7D
31.4%
1Y
15.9%

Phase III Readouts Will Broaden Pulmonary And Regenerative Markets

United Therapeutics’ consensus price target has been raised from $380.57 to $399.90, reflecting heightened analyst optimism following positive Phase 3 TETON-2 Tyvaso IPF results that signal a multibillion-dollar sales opportunity and improved revenue outlook despite competitive and litigation risks. Analyst Commentary Bullish analysts increased price targets sharply following "surprisingly positive" Phase 3 TETON-2 results for Tyvaso in idiopathic pulmonary fibrosis (IPF), citing clinically meaningful FVC benefit, strong statistical significance, and a competitive efficacy profile compared to pipeline peers.
UNH
US$315.39
UnitedHealth Group
7D
1.8%
1Y
-47.2%

UnitedHealth Group Incorporated (NYSE:UNH) Held Back By Insufficient Growth Even After Shares Climb 30%

Aug 31
UnitedHealth Group Incorporated (NYSE:UNH) Held Back By Insufficient Growth Even After Shares Climb 30%
ISRG
US$466.86
Intuitive Surgical
7D
-1.4%
1Y
-1.1%
AMGN
US$283.64
Amgen
7D
-1.4%
1Y
-11.5%
BNTX
US$112.46
BioNTech
7D
12.5%
1Y
25.0%
CAI
US$34.85
Caris Life Sciences
7D
-9.2%
1Y
n/a
DHR
US$200.21
Danaher
7D
-2.7%
1Y
-24.8%
ZTS
US$153.32
Zoetis
7D
-2.0%
1Y
-19.0%
HCA
US$420.77
HCA Healthcare
7D
4.2%
1Y
8.5%