Investing IdeasBrowse All StocksMarkets

Have your own idea? Try our Stock Screener

Header cover image

U.S. Healthcare Sector Analysis

UpdatedNov 08, 2024
DataAggregated Company Financials
Companies1387
  • 7D2.0%
  • 3M0.4%
  • 1Y19.8%
  • YTD6.6%

The Healthcare industry is up 2.0% in the last week, with UnitedHealth Group up 7.3%. In the last 12 months, the industry was up 20%. Looking forward, earnings are forecast to grow by 22% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 08 Nov 2024US$6.2tUS$2.9tUS$71.7b28.3x86.6x2.1x
Sun, 06 Oct 2024US$6.2tUS$2.8tUS$60.0b29.7x102.5x2.2x
Tue, 03 Sep 2024US$6.3tUS$2.8tUS$60.4b32.2x105x2.2x
Thu, 01 Aug 2024US$6.4tUS$2.9tUS$69.4b32.1x91.6x2.2x
Sat, 29 Jun 2024US$6.2tUS$2.8tUS$62.2b30.5x99.3x2.2x
Mon, 27 May 2024US$6.1tUS$2.8tUS$63.7b30.9x96.4x2.2x
Wed, 24 Apr 2024US$6.0tUS$2.8tUS$84.4b30.9x71.5x2.2x
Fri, 22 Mar 2024US$6.3tUS$2.8tUS$82.1b32.5x76.3x2.3x
Sun, 18 Feb 2024US$6.3tUS$2.8tUS$82.4b30.1x75.9x2.2x
Tue, 16 Jan 2024US$6.4tUS$2.8tUS$90.8b32.2x70.2x2.3x
Thu, 14 Dec 2023US$6.0tUS$2.8tUS$91.5b31.7x65.9x2.1x
Sat, 11 Nov 2023US$5.6tUS$2.8tUS$91.0b26.5x62x2x
Mon, 09 Oct 2023US$5.9tUS$2.8tUS$98.3b26.7x59.7x2.1x
Wed, 06 Sep 2023US$6.0tUS$2.8tUS$98.6b27x61.2x2.2x
Fri, 04 Aug 2023US$6.0tUS$2.8tUS$94.7b29.5x63.2x2.2x
Sun, 02 Jul 2023US$6.1tUS$2.7tUS$110.3b26.6x54.9x2.2x
Tue, 30 May 2023US$5.8tUS$2.7tUS$110.5b24.4x52.6x2.1x
Thu, 27 Apr 2023US$5.9tUS$2.5tUS$117.2b24.5x50.1x2.4x
Sat, 25 Mar 2023US$5.7tUS$2.5tUS$124.1b23.6x45.7x2.3x
Mon, 20 Feb 2023US$5.9tUS$2.5tUS$131.2b24.7x45.1x2.4x
Wed, 18 Jan 2023US$6.0tUS$2.5tUS$135.9b23x44.4x2.5x
Fri, 16 Dec 2022US$6.1tUS$2.4tUS$133.8b23.3x45.3x2.5x
Sun, 13 Nov 2022US$5.9tUS$2.4tUS$136.0b23.1x43.5x2.4x
Tue, 11 Oct 2022US$5.5tUS$2.4tUS$155.6b21.1x35.4x2.3x
Thu, 08 Sep 2022US$5.6tUS$2.4tUS$156.5b22.1x36.1x2.4x
Sat, 06 Aug 2022US$6.0tUS$2.4tUS$161.2b24.6x37.4x2.5x
Mon, 04 Jul 2022US$5.9tUS$2.6tUS$165.5b23.8x35.4x2.3x
Wed, 01 Jun 2022US$5.9tUS$2.6tUS$166.6b24.6x35.5x2.3x
Fri, 29 Apr 2022US$6.0tUS$2.5tUS$161.8b27.7x37x2.4x
Sun, 27 Mar 2022US$6.5tUS$2.5tUS$171.2b28.8x37.7x2.6x
Tue, 22 Feb 2022US$6.1tUS$2.5tUS$165.9b28.8x36.7x2.5x
Thu, 20 Jan 2022US$6.3tUS$2.4tUS$144.9b30.5x43.3x2.6x
Sat, 18 Dec 2021US$6.8tUS$2.4tUS$146.2b31.1x46.5x2.8x
Mon, 15 Nov 2021US$6.8tUS$2.4tUS$146.7b35.1x46.7x2.9x
Price to Earnings Ratio

46.7x


Total Market Cap: US$6.8tTotal Earnings: US$146.7bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 59x202220232024
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 86.6x which is higher than its 3-year average PE of 59.0x.
  • The industry is trading close to its 3-year average PS ratio of 2.3x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have declined 21% 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 Market5.13%
Healthcare2.01%
Healthtech5.69%
Healthcare Services5.56%
Biotech4.32%
Life Sciences3.84%
Medical Equipment2.11%
Pharma-2.21%
Industry PE
  • Investors are most optimistic about the Life Sciences industry which is trading above its 3-year average PE ratio of 55.9x.
    • Analysts are expecting annual earnings growth of 18.5%, 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 28% 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 18% 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$605.457.3%
+US$35.9b		12.3%PE38.9x
MCK McKessonUS$607.5121.4%
+US$13.9b		31.5%PE31.1x
GILD Gilead SciencesUS$97.909.4%
+US$10.5b		29.0%PE968.1x
VRTX Vertex PharmaceuticalsUS$502.456.7%
+US$7.8b		34.5%PS12.2x
ISRG Intuitive SurgicalUS$524.284.1%
+US$7.3b		92.5%PE83.2x
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

JNJ

US$156.73

Johnson & Johnson

7D

-2.0%

1Y

6.3%

PFE

US$27.46

Pfizer

7D

-3.0%

1Y

-7.5%

Pfizer: Discounted For A Reason - But Dividend Story Remains Rich

Nov 08

MCK

US$607.51

McKesson

7D

21.4%

1Y

31.5%

BSX

US$86.88

Boston Scientific

7D

3.4%

1Y

68.9%

GILD

US$97.90

Gilead Sciences

7D

9.4%

1Y

29.0%

SYK

US$369.83

Stryker

7D

3.8%

1Y

36.5%

MRK

US$101.17

Merck

7D

-1.1%

1Y

-1.2%

Merck: An Undervalued Dividend Machine

Nov 07

EXAS

US$53.23

Exact Sciences

7D

-23.7%

1Y

-10.9%

UNH

US$605.45

UnitedHealth Group

7D

7.3%

1Y

12.3%

VRTX

US$502.45

Vertex Pharmaceuticals

7D

6.7%

1Y

34.5%

LLY

US$797.45

Eli Lilly

7D

-3.9%

1Y

34.9%

ZTS

US$174.25

Zoetis

7D

-2.5%

1Y

2.1%

PACS

US$19.83

PACS Group

7D

-53.5%

1Y

n/a

ABBV

US$200.51

AbbVie

7D

-1.5%

1Y

44.7%

ISRG

US$524.28

Intuitive Surgical

7D

4.1%

1Y

92.5%

ELV

US$429.34

Elevance Health

7D

5.8%

1Y

-5.2%

We Think Elevance Health's (NYSE:ELV) Profit Is Only A Baseline For What They Can Achieve

Oct 29
We Think Elevance Health's (NYSE:ELV) Profit Is Only A Baseline For What They Can Achieve