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U.S. Healthcare Sector Analysis

UpdatedMar 31, 2026
DataAggregated Company Financials
Companies1390
  • 7D-1.2%
  • 3M-8.6%
  • 1Y0.9%
  • YTD-8.4%

Over the last 7 days, the Healthcare industry has dropped 1.2%, driven by a pullback from Eli Lilly of 3.5%. As for the longer term, the industry's performance has been flat for the past year. As for the next few years, earnings are expected to grow by 15% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 31 Mar 2026US$6.0tUS$3.3tUS$126.5b21.9x47.3x1.8x
Thu, 26 Feb 2026US$6.6tUS$3.3tUS$126.3b26.2x52.2x2x
Sat, 24 Jan 2026US$6.7tUS$3.2tUS$130.6b28.5x51.1x2.1x
Mon, 22 Dec 2025US$6.5tUS$3.2tUS$135.2b26.2x48x2x
Wed, 19 Nov 2025US$6.2tUS$3.2tUS$133.4b25.1x46.8x2x
Fri, 17 Oct 2025US$6.0tUS$3.1tUS$140.4b25.4x42.5x1.9x
Sun, 14 Sep 2025US$5.7tUS$3.1tUS$137.6b22.7x41.6x1.9x
Tue, 12 Aug 2025US$5.4tUS$3.1tUS$139.8b23.4x38.5x1.7x
Thu, 10 Jul 2025US$5.5tUS$3.0tUS$127.9b24.2x43.2x1.8x
Sat, 07 Jun 2025US$5.4tUS$3.0tUS$127.2b24x42.7x1.8x
Mon, 05 May 2025US$5.6tUS$2.7tUS$126.2b24.8x44.1x2x
Wed, 02 Apr 2025US$5.7tUS$2.6tUS$81.6b26.3x69.4x2.1x
Fri, 28 Feb 2025US$5.8tUS$2.6tUS$79.7b26.1x73.3x2.2x
Sun, 26 Jan 2025US$6.0tUS$2.9tUS$85.5b27.9x70.7x2.1x
Tue, 24 Dec 2024US$5.8tUS$2.9tUS$78.3b27.1x73.5x2x
Thu, 21 Nov 2024US$5.9tUS$2.9tUS$77.0b27.4x76.7x2x
Sat, 19 Oct 2024US$6.2tUS$2.8tUS$58.7b32.2x105.7x2.2x
Mon, 16 Sep 2024US$6.3tUS$2.8tUS$60.0b30.6x105.4x2.2x
Wed, 14 Aug 2024US$6.0tUS$2.8tUS$55.4b31.1x108.3x2.1x
Fri, 12 Jul 2024US$6.2tUS$2.8tUS$62.2b30.7x100x2.2x
Sun, 09 Jun 2024US$6.2tUS$2.8tUS$63.6b30x97.5x2.2x
Tue, 07 May 2024US$6.1tUS$2.8tUS$64.3b31.1x94.4x2.1x
Thu, 04 Apr 2024US$6.2tUS$2.8tUS$84.0b32.4x73.6x2.2x
Sat, 02 Mar 2024US$6.2tUS$2.8tUS$85.1b31.9x73.3x2.2x
Mon, 29 Jan 2024US$6.3tUS$2.8tUS$90.7b32x69.7x2.2x
Wed, 27 Dec 2023US$6.2tUS$2.8tUS$91.5b33x67.4x2.2x
Fri, 24 Nov 2023US$5.8tUS$2.8tUS$91.2b28.2x63.8x2.1x
Sun, 22 Oct 2023US$5.7tUS$2.8tUS$99.6b25.6x57.7x2.1x
Tue, 19 Sep 2023US$6.0tUS$2.8tUS$98.6b29.1x60.8x2.2x
Thu, 17 Aug 2023US$6.1tUS$2.8tUS$99.2b28.7x61.9x2.2x
Sat, 15 Jul 2023US$6.0tUS$2.7tUS$110.9b26.3x53.9x2.2x
Mon, 12 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Wed, 10 May 2023US$6.0tUS$2.7tUS$111.9b24.4x53.8x2.2x
Fri, 07 Apr 2023US$5.9tUS$2.5tUS$121.8b24.3x48.6x2.4x
Price to Earnings Ratio

48.6x


Total Market Cap: US$5.9tTotal Earnings: US$121.8bTotal Revenue: US$2.5tTotal 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 47.5x which is lower than its 3-year average PE of 65.5x.
  • The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.8x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 9.6% 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 and as a result, profits have held steady.

Industry Trends

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

US Market-3.50%
Healthcare-1.23%
Pharma0.35%
Biotech-0.42%
Life Sciences-1.37%
Healthcare Services-2.67%
Medical Equipment-3.67%
Healthtech-5.40%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 55.8x.
    • Analysts are expecting annual earnings growth of 15.9%, which is higher than its past year's earnings growth of 6.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 22% over the next 5 years.
  • However this is lower than its past earnings growth rate of 40% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 11% 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$242.493.0%
+US$17.0b		46.2%PE21.8x
ABBV AbbVieUS$213.124.0%
+US$14.5b		1.7%PE90.1x
MRK MerckUS$118.102.1%
+US$6.0b		31.6%PE16x
BMY Bristol-Myers SquibbUS$59.734.8%
+US$5.9b		-2.1%PE17.3x
PFE PfizerUS$27.773.7%
+US$5.7b		9.6%PE20.4x

Latest News

ABT
US$101.88
Abbott Laboratories
7D
-2.8%
1Y
-23.2%
MRK
US$118.10
Merck
7D
2.1%
1Y
31.6%
BSX
US$62.93
Boston Scientific
7D
-9.5%
1Y
-37.6%
UTHR
US$588.36
United Therapeutics
7D
12.9%
1Y
90.9%
BMY
US$59.73
Bristol-Myers Squibb
7D
4.8%
1Y
-2.1%
LLY
US$886.63
Eli Lilly
7D
-2.6%
1Y
7.4%
JNJ
US$242.49
Johnson & Johnson
7D
3.0%
1Y
46.2%
ABBV
US$213.12
AbbVie
7D
4.0%
1Y
1.7%
IBRX
US$6.66
ImmunityBio
7D
-29.1%
1Y
121.3%
DHR
US$183.89
Danaher
7D
-3.2%
1Y
-10.3%
HCA
US$467.83
HCA Healthcare
7D
-5.4%
1Y
35.4%

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PFE
US$27.77
Pfizer
7D
3.7%
1Y
9.6%
INSM
US$153.32
Insmed
7D
10.2%
1Y
112.9%
ISRG
US$452.78
Intuitive Surgical
7D
-5.3%
1Y
-8.6%

ISRG: Future Platform Adoption And Policy Shifts Will Shape Premium Multiple Sustainability

Intuitive Surgical's updated analyst price target edges lower to $457.50 from $464.58, as analysts balance slightly firmer revenue growth and profit margin assumptions with a modestly lower forward P/E multiple after a mix of recent target cuts and upgrades across the Street. Analyst Commentary Recent research updates on Intuitive Surgical show a mixed backdrop, with several firms trimming price targets even as others reiterate or lift their views.
UNH
US$261.79
UnitedHealth Group
7D
-2.9%
1Y
-50.0%
MDGL
US$505.34
Madrigal Pharmaceuticals
7D
13.5%
1Y
56.0%

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Analysts now set the fair value estimate for Madrigal Pharmaceuticals at $529, up $27 from $502. This reflects updated models that factor in gross to net adjustments, recent licensing activity, and mixed revisions to Street price targets across firms.