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U.S. Healthcare Sector Analysis

UpdatedJul 26, 2026
DataAggregated Company Financials
Companies1398
  • 7D0.3%
  • 3M12.3%
  • 1Y20.2%
  • YTD5.1%

Last week, the Healthcare industry hasn't moved much but Johnson & Johnson is up 4.1% in that time. The past year has been better, since the industry has gained 20% in that time. Looking forward, earnings are forecast to grow by 18% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 27 Jul 2026US$6.9tUS$3.3tUS$124.5b25.8x55.3x2.1x
Wed, 24 Jun 2026US$6.4tUS$3.3tUS$121.6b23.4x52.7x1.9x
Fri, 22 May 2026US$6.3tUS$3.3tUS$123.0b23.3x51x1.9x
Sun, 19 Apr 2026US$6.4tUS$3.3tUS$121.2b24x52.4x1.9x
Tue, 17 Mar 2026US$6.2tUS$3.3tUS$124.6b24.3x49.9x1.9x
Thu, 12 Feb 2026US$6.5tUS$3.3tUS$127.0b26.7x50.9x2x
Sat, 10 Jan 2026US$6.6tUS$3.2tUS$136.3b26.5x48.7x2.1x
Mon, 08 Dec 2025US$6.4tUS$3.2tUS$133.6b25.9x47.8x2x
Wed, 05 Nov 2025US$6.0tUS$3.2tUS$133.5b25.4x44.8x1.9x
Fri, 03 Oct 2025US$5.9tUS$3.1tUS$137.7b24.6x43.1x1.9x
Sun, 31 Aug 2025US$5.7tUS$3.1tUS$137.5b23.3x41.4x1.8x
Tue, 29 Jul 2025US$5.6tUS$3.1tUS$128.1b24.3x43.8x1.8x
Thu, 26 Jun 2025US$5.5tUS$3.0tUS$127.5b24.4x43x1.8x
Sat, 24 May 2025US$5.3tUS$3.0tUS$126.9b22.8x41.8x1.7x
Mon, 21 Apr 2025US$5.3tUS$2.6tUS$97.6b24.8x54.1x2x
Wed, 19 Mar 2025US$5.7tUS$2.6tUS$75.0b27x76.3x2.2x
Fri, 14 Feb 2025US$5.8tUS$2.6tUS$84.3b26.6x69.3x2.2x
Sun, 12 Jan 2025US$5.8tUS$2.9tUS$78.7b27.6x74.2x2x
Tue, 10 Dec 2024US$6.1tUS$2.9tUS$77.6b28.9x78.2x2.1x
Thu, 07 Nov 2024US$6.2tUS$2.9tUS$74.7b28.7x82.8x2.1x
Sat, 05 Oct 2024US$6.1tUS$2.8tUS$60.0b29.6x102.3x2.2x
Mon, 02 Sep 2024US$6.3tUS$2.8tUS$60.3b32.2x105x2.2x
Wed, 31 Jul 2024US$6.4tUS$2.8tUS$61.2b32x104.3x2.2x
Fri, 28 Jun 2024US$6.2tUS$2.8tUS$62.4b30.5x99.1x2.2x
Sun, 26 May 2024US$6.1tUS$2.8tUS$63.7b30.9x96.5x2.2x
Tue, 23 Apr 2024US$5.9tUS$2.8tUS$84.6b30.2x70x2.1x
Thu, 21 Mar 2024US$6.3tUS$2.8tUS$82.2b32.1x76.2x2.3x
Sat, 17 Feb 2024US$6.2tUS$2.8tUS$82.5b30.7x75.7x2.2x
Mon, 15 Jan 2024US$6.4tUS$2.8tUS$90.8b32.2x70.2x2.3x
Wed, 13 Dec 2023US$6.0tUS$2.8tUS$91.6b30.5x65.7x2.1x
Fri, 10 Nov 2023US$5.8tUS$2.8tUS$86.5b25.8x66.6x2x
Sun, 08 Oct 2023US$5.9tUS$2.8tUS$98.3b26.7x59.7x2.1x
Tue, 05 Sep 2023US$6.1tUS$2.8tUS$98.6b27.4x61.9x2.2x
Thu, 03 Aug 2023US$6.0tUS$2.8tUS$98.3b28.4x61.3x2.2x
Price to Earnings Ratio

61.3x


Total Market Cap: US$6.0tTotal Earnings: US$98.3bTotal Revenue: US$2.8tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.5x202420252026
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 55.3x which is lower than its 3-year average PE of 65.5x.
  • The industry is trading close to its 3-year average PS ratio of 2.1x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have grown 8.2% per year over the last three years.
  • Revenues for these companies have grown 6.8% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Healthcare sector?

US Market-1.05%
Healthcare0.30%
Pharma1.86%
Life Sciences0.85%
Healthcare Services-0.30%
Medical Equipment-0.74%
Biotech-1.31%
Healthtech-4.41%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 55.9x.
    • Analysts are expecting annual earnings growth of 16.8%, which is higher than its past year's earnings growth of 12.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 25% over the next 5 years.
  • However this is lower than its past earnings growth rate of 59% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 15% 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$263.404.1%
+US$25.6b		56.5%PE30.2x
LLY Eli LillyUS$1.20k1.4%
+US$15.1b		47.2%PE42.2x
TMO Thermo Fisher ScientificUS$568.266.7%
+US$13.3b		18.8%PE30.3x
MRK MerckUS$131.072.8%
+US$8.8b		54.7%PE36.2x
ABBV AbbVieUS$259.361.9%
+US$8.6b		36.3%PE127.5x

Latest News

GILD
US$129.31
Gilead Sciences
7D
-3.7%
1Y
11.3%
ISRG
US$337.50
Intuitive Surgical
7D
-2.3%
1Y
-31.9%
LLY
US$1,196.03
Eli Lilly
7D
1.4%
1Y
47.2%
Narrative Update • Jul 25

LLY: GLP-1 Leadership And Retatrutide Data Will Shape Balanced Outlook

Eli Lilly's updated fair value estimate of $1,270.37, up from $1,243.43, reflects analysts' higher price targets that lean on expectations for stronger obesity and diabetes franchise contributions, incremental support from retatrutide data, and Q2 previews that factor in relatively higher revenue growth assumptions alongside slightly adjusted long term profit margins and future P/E multiples. Analyst Commentary Recent research on Eli Lilly points to a generally constructive stance from Wall Street, with multiple firms lifting price targets as they reassess the company's obesity and diabetes portfolio, retatrutide data, and Q2 earnings setup.
JNJ
US$263.40
Johnson & Johnson
7D
4.1%
1Y
56.5%
MRK
US$131.07
Merck
7D
2.8%
1Y
54.7%
WST
US$328.20
West Pharmaceutical Services
7D
-8.4%
1Y
24.5%
TMO
US$568.26
Thermo Fisher Scientific
7D
6.7%
1Y
18.8%
ABBV
US$259.36
AbbVie
7D
1.9%
1Y
36.3%
Narrative Update • Jul 24

ABBV: Future Returns Will Rely On Apogee Deal And Broader Pipeline Execution

AbbVie’s updated analyst price target has increased to $266.89 from $259.46 as analysts factor in recent Q2 preview research, higher modeled profit margins, and a slightly adjusted discount rate and future P/E outlook. Analyst Commentary Recent research commentary around AbbVie points to a broadly constructive tone ahead of Q2 results, with several firms revisiting their models, adjusting P/E assumptions, and updating margin and pipeline expectations.
ABT
US$103.06
Abbott Laboratories
7D
2.4%
1Y
-18.6%
Narrative Update • Jul 23

ABT: Cancer Diagnostics Expansion And Dividend Streak Will Drive Future Repricing

Abbott Laboratories' fair value estimate has moved from $116.54 to $119.13. This reflects analysts' higher price targets in the $112 to $121 range after Q2 results that were viewed as better than expected and supported by updated models and confidence in longer term growth drivers.
PFE
US$24.54
Pfizer
7D
-2.0%
1Y
-1.0%
DHR
US$191.50
Danaher
7D
-6.0%
1Y
-6.8%
Narrative Update • Jul 23

DHR: Bioprocess Recovery And Diagnostics Expansion Will Support Premium Multiple

Danaher’s analyst price target is being reset modestly lower toward about $230, as analysts factor in recent bioprocessing misses, a higher assumed discount rate, and a lower future P/E multiple, even while keeping broadly constructive views on the core life sciences and diagnostics franchises. Analyst Commentary Recent Street research around Danaher highlights a mix of optimism about the long term potential of its life sciences and diagnostics businesses and concern about near term execution, particularly in bioprocessing.
UNH
US$420.74
UnitedHealth Group
7D
-1.3%
1Y
49.7%
Seeking Alpha • Jul 22

UnitedHealth: Recovery Unlikely To Be Linear - Near-Term Consolidation Risks

Summary UnitedHealth's raised premiums have worked as intended in driving the healthier membership base, as observed in the lower Medical Care Ratio and richer margins. Optum's integrated care management post-hospitalization and the accelerated adoption of their transparent pharmacy pricing underpin future recovery trends. The shareholder return prospects across share repurchases/dividends may remain resilient, aided by the potential upside to my LTPT of $521.70. UNH is reiterated as a Buy after a moderate correction to the $375s–$400s, given the overbought technical indicators and post-earnings call consolidation risks. The potential Stars rating pressure/elevated member attrition from higher premiums in 2027 suggests their lumpy recovery prospects. Read the full article on Seeking Alpha
MRNA
US$54.07
Moderna
7D
-12.5%
1Y
58.3%
AMGN
US$376.04
Amgen
7D
2.7%
1Y
22.7%
New Narrative • Jul 19

A transitional big-pharma giant holding a speculative premium driven by obesity hype, masking severe revenue erosion.

The "Amgen 2027 Bull Case" relies on a classic top-line fallacy: assuming that macro obesity market growth and FDA's CNPV (Commissioner’s National Priority Voucher) tailwinds will automatically trigger a re-rating. Here is the cold, data-driven reality: 1.
SYK
US$330.25
Stryker
7D
3.2%
1Y
-18.2%
VRTX
US$477.36
Vertex Pharmaceuticals
7D
-1.7%
1Y
1.6%