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U.S. Healthcare Sector Analysis

UpdatedSep 01, 2025
DataAggregated Company Financials
Companies1361
  • 7D0.6%
  • 3M4.0%
  • 1Y-12.8%
  • YTD-1.5%

Over the last 7 days, the Healthcare industry has remained flat, although notably Eli Lilly gained 5.4%. Unfortunately though, the industry is down 13% over the past 12 months. Looking forward, earnings are forecast to grow by 15% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 01 Sep 2025US$5.7tUS$3.1tUS$137.5b23.3x41.4x1.8x
Wed, 30 Jul 2025US$5.6tUS$3.1tUS$125.1b24.2x44.5x1.8x
Fri, 27 Jun 2025US$5.5tUS$3.0tUS$127.5b24.5x43.1x1.8x
Sun, 25 May 2025US$5.3tUS$3.0tUS$126.9b22.8x41.7x1.7x
Tue, 22 Apr 2025US$5.3tUS$2.6tUS$97.8b23.7x54x2x
Thu, 20 Mar 2025US$5.7tUS$2.6tUS$75.2b26.9x75.9x2.2x
Sat, 15 Feb 2025US$5.9tUS$2.6tUS$82.1b26.7x71.5x2.2x
Mon, 13 Jan 2025US$5.8tUS$2.9tUS$78.7b27.6x74.2x2x
Wed, 11 Dec 2024US$6.1tUS$2.9tUS$77.5b28.8x78.4x2.1x
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
Price to Earnings Ratio

36.1x


Total Market Cap: US$5.6tTotal Earnings: US$156.5bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 64.6x202320242025
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 41.4x which is lower than its 3-year average PE of 64.6x.
  • The 3-year average PS ratio of 2.2x is higher than the industry's current PS ratio of 1.8x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have declined 4.2% per year over the last three years.
  • Meanwhile revenues for these companies have grown 8.8% 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 Market0.46%
Healthcare0.61%
Pharma1.61%
Healthcare Services1.21%
Medical Equipment0.16%
Life Sciences0.012%
Biotech-0.40%
Healthtech-2.29%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 57.4x.
    • Analysts expect its future annual earnings growth (13.0%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 26% over the next 5 years.
  • However this is lower than its past earnings growth rate of 69% per year.
  • In contrast, the Pharma 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
LLY Eli LillyUS$732.585.4%
+US$33.4b		-23.7%PE47.7x
ABBV AbbVieUS$210.401.4%
+US$5.0b		7.2%PE99.8x
UNH UnitedHealth GroupUS$309.871.6%
+US$4.5b		-47.5%PE13.2x
CVS CVS HealthUS$73.152.7%
+US$2.5b		27.8%PE20.5x
A Agilent TechnologiesUS$125.665.5%
+US$1.8b		-12.1%PE29.2x

Latest News

JNJ
US$177.17
Johnson & Johnson
7D
-0.7%
1Y
6.8%
UNH
US$309.87
UnitedHealth Group
7D
1.6%
1Y
-47.5%

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Aug 31
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ISRG
US$473.30
Intuitive Surgical
7D
1.0%
1Y
-3.9%
VEEV
US$269.20
Veeva Systems
7D
-5.6%
1Y
24.4%

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A
US$125.66
Agilent Technologies
7D
5.5%
1Y
-12.1%
MRK
US$84.12
Merck
7D
-1.4%
1Y
-29.0%
LLY
US$732.58
Eli Lilly
7D
5.4%
1Y
-23.7%
NAKA
US$5.44
Kindly MD
7D
-40.7%
1Y
353.3%
GILD
US$112.97
Gilead Sciences
7D
-1.0%
1Y
43.0%
INSM
US$136.10
Insmed
7D
6.1%
1Y
78.0%

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Insmed’s consensus price target has surged to $148.44, driven by the FDA approval and strong commercial prospects for Brinsupri, expanded pipeline potential, and robust Phase 2 results for TPIP—underscoring significant upward revisions in revenue and profit expectations. Analyst Commentary Bullish analysts are raising price targets following FDA approval of Brinsupri as the first therapy for non-cystic fibrosis bronchiectasis, citing a broad label with both doses approved, clean safety profile, and inclusion of favorable FEV1 and secondary endpoint data in prescribing information.
ABBV
US$210.40
AbbVie
7D
1.4%
1Y
7.2%
PFE
US$24.76
Pfizer
7D
-1.5%
1Y
-14.7%
ABT
US$132.66
Abbott Laboratories
7D
0.6%
1Y
17.1%
RMD
US$274.51
ResMed
7D
-4.0%
1Y
12.0%
SMMT
US$23.70
Summit Therapeutics
7D
-9.8%
1Y
82.6%
CVS
US$73.15
CVS Health
7D
2.7%
1Y
27.8%

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Aug 13
CVS Health's (NYSE:CVS) Soft Earnings Don't Show The Whole Picture