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U.S. Healthcare Sector Analysis

UpdatedNov 25, 2025
DataAggregated Company Financials
Companies1376
  • 7D2.8%
  • 3M16.0%
  • 1Y6.3%
  • YTD13.6%

In the last week, the Healthcare industry is up 2.8%, with Merck up 7.2%. This means that the industry has gained 6.3% over the past year. Looking forward, earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 30 Nov 2025US$6.4tUS$3.2tUS$133.7b25.9x47.5x2x
Tue, 28 Oct 2025US$6.1tUS$3.1tUS$140.4b26.2x43.3x2x
Thu, 25 Sep 2025US$5.7tUS$3.1tUS$137.6b23.6x41.5x1.8x
Sat, 23 Aug 2025US$5.7tUS$3.1tUS$137.2b23.7x41.4x1.8x
Mon, 21 Jul 2025US$5.4tUS$3.0tUS$128.8b22.7x42x1.8x
Wed, 18 Jun 2025US$5.5tUS$3.0tUS$127.4b22.6x43.5x1.8x
Fri, 16 May 2025US$5.2tUS$3.0tUS$125.8b23.2x41.7x1.7x
Sun, 13 Apr 2025US$5.3tUS$2.6tUS$82.2b24.9x64.7x2x
Tue, 11 Mar 2025US$5.8tUS$2.6tUS$78.7b27.4x74x2.2x
Thu, 06 Feb 2025US$5.9tUS$2.6tUS$88.1b27.5x67.1x2.2x
Sat, 04 Jan 2025US$5.8tUS$2.9tUS$79.3b27.3x72.7x2x
Mon, 02 Dec 2024US$6.2tUS$2.9tUS$77.3b28.8x79.8x2.1x
Wed, 30 Oct 2024US$6.1tUS$2.8tUS$66.3b29.5x91.3x2.1x
Fri, 27 Sep 2024US$6.2tUS$2.8tUS$60.0b29.9x103.2x2.2x
Sun, 25 Aug 2024US$6.3tUS$2.8tUS$56.4b31.6x111.1x2.2x
Tue, 23 Jul 2024US$6.3tUS$2.8tUS$60.7b31.9x103.5x2.2x
Thu, 20 Jun 2024US$6.2tUS$2.8tUS$62.5b29.9x98.5x2.2x
Sat, 18 May 2024US$6.2tUS$2.8tUS$64.2b30.5x97x2.2x
Mon, 15 Apr 2024US$6.0tUS$2.8tUS$85.4b31.9x70x2.1x
Wed, 13 Mar 2024US$6.3tUS$2.8tUS$85.3b32.4x73.6x2.3x
Fri, 09 Feb 2024US$6.2tUS$2.8tUS$76.5b31.3x80.6x2.2x
Sun, 07 Jan 2024US$6.3tUS$2.8tUS$90.0b30.9x70.1x2.2x
Tue, 05 Dec 2023US$5.9tUS$2.8tUS$91.4b29.2x65x2.1x
Thu, 02 Nov 2023US$5.6tUS$2.8tUS$93.3b24.6x60x2x
Sat, 30 Sep 2023US$5.9tUS$2.8tUS$98.6b27.6x59.8x2.1x
Mon, 28 Aug 2023US$6.1tUS$2.8tUS$99.0b27.7x61.6x2.2x
Wed, 26 Jul 2023US$6.1tUS$2.7tUS$110.1b27x55.6x2.2x
Fri, 23 Jun 2023US$6.0tUS$2.7tUS$109.8b26.6x54.8x2.2x
Sun, 21 May 2023US$6.0tUS$2.7tUS$110.8b24.2x53.9x2.2x
Tue, 18 Apr 2023US$6.0tUS$2.5tUS$123.6b24.5x48.4x2.4x
Thu, 16 Mar 2023US$5.6tUS$2.5tUS$122.4b24x46x2.3x
Sat, 11 Feb 2023US$5.9tUS$2.5tUS$130.2b23.8x45.6x2.4x
Mon, 09 Jan 2023US$6.0tUS$2.5tUS$135.4b22.7x44.4x2.5x
Wed, 07 Dec 2022US$6.0tUS$2.4tUS$133.7b23.3x45.2x2.5x
Price to Earnings Ratio

45.2x


Total Market Cap: US$6.0tTotal Earnings: US$133.7bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65x202320242025
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 65.0x.
  • 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 remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 9.2% 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 Market4.11%
Healthcare2.82%
Biotech3.61%
Healthcare Services3.37%
Pharma2.68%
Medical Equipment2.61%
Life Sciences1.78%
Healthtech0.52%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 61.1x.
    • Analysts are expecting annual earnings growth of 17.6%, which is higher than its past year's earnings decline of 0.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 24% over the next 5 years.
  • However this is lower than its past earnings growth rate of 52% per year.
  • In contrast, the Medical Equipment industry is expected to see its earnings grow by 13% 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
MRK MerckUS$104.837.2%
+US$17.5b		3.1%PE13.7x
LLY Eli LillyUS$1.08k1.5%
+US$14.1b		35.2%PE52.3x
UNH UnitedHealth GroupUS$329.773.1%
+US$8.9b		-46.0%PE17x
JNJ Johnson & JohnsonUS$206.921.5%
+US$7.3b		33.5%PE19.8x
BSX Boston ScientificUS$101.584.9%
+US$7.0b		12.0%PE54x

Latest News

ABBV
US$227.70
AbbVie
7D
-3.6%
1Y
24.5%
MDT
US$105.33
Medtronic
7D
4.1%
1Y
21.7%

Medtronic plc Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next

Nov 28
Medtronic plc Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next
DHR
US$226.78
Danaher
7D
-0.3%
1Y
-5.4%
ONC
US$340.61
BeOne Medicines
7D
-2.0%
1Y
58.4%
BSX
US$101.58
Boston Scientific
7D
4.9%
1Y
12.0%

BSX: Shares Will Advance On Earnings Strength And Merger Execution Momentum

Boston Scientific's analyst price targets have been raised by several dollars, with most now clustered around $130 per share. Analysts highlight robust quarterly results, accelerating growth segments, and confidence in the company’s long-range outlook.
LLY
US$1,075.47
Eli Lilly
7D
1.5%
1Y
35.2%
MRK
US$104.83
Merck
7D
7.2%
1Y
3.1%

MRK: Recent Pipeline Deals And Patent Expiry Will Shape Outlook Ahead

Analysts have raised the price target for Merck to $105 from $98, citing stronger growth prospects and a more favorable valuation because of the company’s expanding pipeline and recent strategic deals. Analyst Commentary Recent analyst commentary on Merck highlights both positive momentum and notable risks that could influence the company’s trajectory in the months ahead.
BMY
US$49.20
Bristol-Myers Squibb
7D
6.4%
1Y
-16.9%
GILD
US$125.84
Gilead Sciences
7D
-0.6%
1Y
35.9%

GILD: Extended Exclusivity And PrEP Opportunities Will Balance Ongoing Oncology And Policy Pressures

Analysts have modestly raised their price target for Gilead Sciences to $130.83 per share from $129.51. They cite the extended exclusivity period for Biktarvy and improved growth prospects in the HIV market as key drivers for the upward revision.
AMGN
US$345.46
Amgen
7D
2.3%
1Y
22.1%
VEEV
US$240.29
Veeva Systems
7D
-1.5%
1Y
5.5%
MASI
US$142.43
Masimo
7D
-4.6%
1Y
-17.5%

MASI: Renewed Philips Partnership Will Drive Outperformance Despite Market Challenges

Analysts have adjusted their price target for Masimo downward from approximately $188 to $183. This change is attributed to shifts in revenue growth estimates and a strengthening profit margin following recent partnership developments and ongoing market challenges.
JNJ
US$206.92
Johnson & Johnson
7D
1.5%
1Y
33.5%

JNJ: Upcoming Business Reorganization and Legal Risks Will Influence Future Performance

Johnson & Johnson's analyst price target has increased slightly from $199.56 to $200.82, as analysts cite stronger-than-expected sector performance and a constructive long-term industry outlook, which support the adjustment. Analyst Commentary Recent analyst commentary on Johnson & Johnson highlights a variety of perspectives related to the company's valuation, strategic direction, and future growth potential.
UNH
US$329.77
UnitedHealth Group
7D
3.1%
1Y
-46.0%

UNH: Margin Improvement Will Accelerate As Medicare Star Ratings Support Recovery

UnitedHealth Group's analyst price target has been raised from $433 to $440, reflecting increased confidence in margin recovery and improved earnings potential. Analysts point to sector-wide stabilization and restored pricing discipline as key factors.
ACLX
US$72.71
Arcellx
7D
-19.4%
1Y
-17.4%
RGC
US$11.53
Regencell Bioscience Holdings
7D
-7.6%
1Y
6,832.6%