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Jul 26
U.S. Healthcare Sector Analysis
UpdatedJul 27, 2024
DataAggregated Company Financials
Companies1375
- 7D1.2%
- 3M6.6%
- 1Y7.9%
- YTD7.0%
Over the last 7 days, the Healthcare industry has risen 1.2%, driven by gains from Thermo Fisher Scientific of 14%. During this same period, the Eli Lilly underperformed, falling 6.2%. In the last 12 months, the industry was up 7.9%. Looking forward, earnings are forecast to grow by 21% annually.
Sector Valuation and Performance
Has the U.S. Healthcare Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 27 Jul 2024 | US$6.3t | US$2.8t | US$61.0b | 31.6x | 104x | 2.2x |
| Mon, 24 Jun 2024 | US$6.2t | US$2.8t | US$62.5b | 30x | 99.2x | 2.2x |
| Wed, 22 May 2024 | US$6.2t | US$2.8t | US$64.2b | 30.7x | 96.7x | 2.2x |
| Fri, 19 Apr 2024 | US$5.9t | US$2.8t | US$84.4b | 30x | 70.2x | 2.1x |
| Sun, 17 Mar 2024 | US$6.2t | US$2.8t | US$84.5b | 31.5x | 73.7x | 2.2x |
| Tue, 13 Feb 2024 | US$6.2t | US$2.8t | US$76.4b | 32x | 81.2x | 2.2x |
| Thu, 11 Jan 2024 | US$6.4t | US$2.8t | US$90.1b | 32.3x | 70.9x | 2.3x |
| Sat, 09 Dec 2023 | US$6.0t | US$2.8t | US$91.4b | 29.4x | 65.1x | 2.1x |
| Mon, 06 Nov 2023 | US$5.7t | US$2.8t | US$88.4b | 26.7x | 65x | 2x |
| Wed, 04 Oct 2023 | US$5.8t | US$2.8t | US$98.2b | 26.5x | 59.2x | 2.1x |
| Fri, 01 Sep 2023 | US$6.1t | US$2.8t | US$98.8b | 27.7x | 61.6x | 2.2x |
| Sun, 30 Jul 2023 | US$6.1t | US$2.8t | US$115.6b | 28x | 52.5x | 2.2x |
| Tue, 27 Jun 2023 | US$6.0t | US$2.7t | US$109.8b | 26.6x | 54.5x | 2.2x |
| Thu, 25 May 2023 | US$5.9t | US$2.7t | US$110.9b | 24x | 53x | 2.2x |
| Sat, 22 Apr 2023 | US$6.0t | US$2.5t | US$117.6b | 24.9x | 51x | 2.4x |
| Mon, 20 Mar 2023 | US$5.6t | US$2.5t | US$123.9b | 23.2x | 45.3x | 2.3x |
| Wed, 15 Feb 2023 | US$6.0t | US$2.5t | US$130.0b | 24x | 45.8x | 2.4x |
| Fri, 13 Jan 2023 | US$6.0t | US$2.5t | US$135.2b | 23.3x | 44.6x | 2.5x |
| Sun, 11 Dec 2022 | US$6.1t | US$2.4t | US$133.7b | 23.6x | 45.4x | 2.5x |
| Tue, 08 Nov 2022 | US$5.8t | US$2.4t | US$138.1b | 22.7x | 42x | 2.4x |
| Thu, 06 Oct 2022 | US$5.7t | US$2.4t | US$155.8b | 21.8x | 36.8x | 2.4x |
| Sat, 03 Sep 2022 | US$5.7t | US$2.4t | US$156.6b | 22.2x | 36.2x | 2.4x |
| Mon, 01 Aug 2022 | US$6.0t | US$2.6t | US$165.9b | 24.4x | 36.3x | 2.3x |
| Wed, 29 Jun 2022 | US$5.8t | US$2.6t | US$165.6b | 23.7x | 35.3x | 2.3x |
| Fri, 27 May 2022 | US$5.9t | US$2.6t | US$165.2b | 25.1x | 35.5x | 2.3x |
| Sun, 24 Apr 2022 | US$6.2t | US$2.5t | US$174.8b | 27.8x | 35.6x | 2.5x |
| Tue, 22 Mar 2022 | US$6.5t | US$2.5t | US$170.7b | 28.8x | 37.9x | 2.6x |
| Thu, 17 Feb 2022 | US$6.3t | US$2.5t | US$161.7b | 30.4x | 38.9x | 2.5x |
| Sat, 15 Jan 2022 | US$6.5t | US$2.4t | US$145.3b | 31.5x | 44.4x | 2.7x |
| Mon, 13 Dec 2021 | US$6.6t | US$2.4t | US$146.5b | 31.5x | 45.4x | 2.8x |
| Wed, 10 Nov 2021 | US$6.9t | US$2.4t | US$144.4b | 35.2x | 47.8x | 2.9x |
| Fri, 08 Oct 2021 | US$6.6t | US$2.3t | US$118.8b | 34.4x | 55.6x | 2.9x |
| Sun, 05 Sep 2021 | US$7.0t | US$2.3t | US$121.1b | 34.1x | 58.2x | 3x |
| Tue, 03 Aug 2021 | US$6.9t | US$2.3t | US$121.4b | 34.2x | 56.5x | 3x |
Price to Earnings Ratio
56.5x
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 104x which is higher than its 3-year average PE of 54.6x.
- The industry is trading close to its 3-year average PS ratio of 2.4x.
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 7.1% 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 | -0.64% | |
| Healthcare | 1.23% | |
| Life Sciences | 9.20% | |
| Healthtech | 4.31% | |
| Biotech | 4.17% | |
| Healthcare Services | 2.76% | |
| Pharma | -0.60% | |
| Medical Equipment | -4.29% | |
Industry PE
- Investors are most optimistic about the Pharma industry which is trading above its 3-year average PE ratio of 46.5x.
- Analysts are expecting annual earnings growth of 23.2%, which is higher than its past year's earnings growth of 16.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Healthtech industry, expecting annual earnings growth of 29% over the next 5 years.
- This is better than its past earnings growth rate of 7.1% per year.
- In contrast, the Life Sciences industry is expected to see its earnings grow by 16% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| TMO Thermo Fisher Scientific | US$607.14 | 13.6% +US$27.8b | 8.1% | PE37.3x | |
| ABBV AbbVie | US$185.16 | 7.5% +US$22.7b | 22.7% | PE61.7x | |
| DHR Danaher | US$273.91 | 12.5% +US$17.4b | 5.3% | PE48.8x | |
| BMY Bristol-Myers Squibb | US$50.45 | 18.3% +US$15.8b | -17.8% | PS2.2x | |
| JNJ Johnson & Johnson | US$160.64 | 3.8% +US$14.4b | -7.9% | PE23.6x |
