Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Healthcare Sector Analysis

UpdatedFeb 11, 2026
DataAggregated Company Financials
Companies1384
  • 7D0.07%
  • 3M1.8%
  • 1Y6.5%
  • YTD-0.7%

The Healthcare industry has been flat over the last week, but Boston Scientific has lost 19%. The past year has been better, since the industry has gained 6.5% in that time. Looking forward, earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 11 Feb 2026US$6.5tUS$3.3tUS$126.9b27.3x51.3x2x
Fri, 09 Jan 2026US$6.7tUS$3.2tUS$135.9b26.7x49.3x2.1x
Sun, 07 Dec 2025US$6.4tUS$3.2tUS$133.6b25.9x47.8x2x
Tue, 04 Nov 2025US$6.0tUS$3.1tUS$134.5b26x44.4x1.9x
Thu, 02 Oct 2025US$5.8tUS$3.1tUS$137.7b24.7x42.1x1.9x
Sat, 30 Aug 2025US$5.7tUS$3.1tUS$137.2b23.4x41.3x1.8x
Mon, 28 Jul 2025US$5.6tUS$3.1tUS$128.1b24.6x43.8x1.8x
Wed, 25 Jun 2025US$5.5tUS$3.0tUS$127.5b24.7x43.1x1.8x
Fri, 23 May 2025US$5.3tUS$3.0tUS$126.7b22.6x42.2x1.8x
Sun, 20 Apr 2025US$5.3tUS$2.6tUS$97.6b24.8x54.1x2x
Tue, 18 Mar 2025US$5.7tUS$2.6tUS$74.8b26.7x75.6x2.1x
Thu, 13 Feb 2025US$5.8tUS$2.6tUS$84.4b26.1x69.1x2.2x
Sat, 11 Jan 2025US$5.9tUS$2.9tUS$78.8b27.6x74.6x2x
Mon, 09 Dec 2024US$6.1tUS$2.9tUS$77.6b28.7x78.2x2.1x
Wed, 06 Nov 2024US$6.1tUS$2.9tUS$74.9b28.8x81.9x2.1x
Fri, 04 Oct 2024US$6.2tUS$2.8tUS$60.0b30.1x103.3x2.2x
Sun, 01 Sep 2024US$6.3tUS$2.8tUS$60.3b32.2x105x2.2x
Tue, 30 Jul 2024US$6.4tUS$2.8tUS$60.8b32.1x105x2.2x
Thu, 27 Jun 2024US$6.2tUS$2.8tUS$62.4b29.9x99.4x2.2x
Sat, 25 May 2024US$6.2tUS$2.8tUS$64.1b30.9x96.1x2.2x
Mon, 22 Apr 2024US$5.9tUS$2.8tUS$84.6b30.2x70x2.1x
Wed, 20 Mar 2024US$6.3tUS$2.8tUS$84.2b31.8x74.4x2.3x
Fri, 16 Feb 2024US$6.2tUS$2.8tUS$82.3b30.8x75.2x2.2x
Sun, 14 Jan 2024US$6.4tUS$2.8tUS$90.8b32.2x70.2x2.3x
Tue, 12 Dec 2023US$6.0tUS$2.8tUS$91.3b30.1x65.5x2.1x
Thu, 09 Nov 2023US$5.8tUS$2.8tUS$88.8b25.8x65.1x2.1x
Sat, 07 Oct 2023US$5.9tUS$2.8tUS$98.3b26.7x59.7x2.1x
Mon, 04 Sep 2023US$6.1tUS$2.8tUS$98.7b27.4x61.9x2.2x
Wed, 02 Aug 2023US$6.0tUS$2.7tUS$98.2b28.6x61.5x2.2x
Fri, 30 Jun 2023US$6.0tUS$2.7tUS$109.9b26.5x54.5x2.2x
Sun, 28 May 2023US$5.8tUS$2.7tUS$110.5b24.4x52.6x2.1x
Tue, 25 Apr 2023US$6.0tUS$2.5tUS$117.7b24.9x51.1x2.4x
Thu, 23 Mar 2023US$5.6tUS$2.5tUS$124.3b23.1x45.2x2.3x
Sat, 18 Feb 2023US$5.9tUS$2.5tUS$131.2b24.7x45.1x2.4x
Price to Earnings Ratio

45.1x


Total Market Cap: US$5.9tTotal Earnings: US$131.2bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.3x202420252026
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 51.3x which is lower than its 3-year average PE of 65.3x.
  • 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 9.7% 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 Market0.99%
Healthcare0.074%
Pharma2.50%
Biotech0.84%
Healthcare Services-1.37%
Medical Equipment-1.65%
Life Sciences-4.24%
Healthtech-5.05%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry, which is trading close to its 3-year average PE ratio of 56.3x.
    • Analysts are expecting annual earnings growth of 16.3%, which is higher than its past year's earnings growth of 6.2% 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 56% 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
LLY Eli LillyUS$1.03k2.1%
+US$19.3b		18.5%PE44.5x
AMGN AmgenUS$364.657.7%
+US$14.0b		22.9%PE25.5x
JNJ Johnson & JohnsonUS$238.352.3%
+US$12.6b		52.7%PE21.4x
PFE PfizerUS$27.617.1%
+US$10.5b		8.1%PE20.3x
BMY Bristol-Myers SquibbUS$60.868.7%
+US$9.9b		8.8%PE17.6x

Latest News

AMGN
US$364.65
Amgen
7D
7.7%
1Y
22.9%

Amgen (NASDAQ:AMGN) Is Increasing Its Dividend To $2.52

Feb 11
Amgen (NASDAQ:AMGN) Is Increasing Its Dividend To $2.52
ABT
US$112.28
Abbott Laboratories
7D
3.0%
1Y
-14.6%
BSX
US$74.25
Boston Scientific
7D
-19.0%
1Y
-29.9%
BDX
US$171.68
Becton Dickinson
7D
-16.9%
1Y
-25.2%
JNJ
US$238.35
Johnson & Johnson
7D
2.3%
1Y
52.7%

JNJ: Oncology Pipeline And Talc Litigation Will Shape Future Risk Balance

Analysts have lifted their Johnson & Johnson fair value estimate by about US$7 to roughly US$231, reflecting research that points to slightly higher assumed revenue growth, modestly stronger profit margins, and a marginally higher future P/E multiple following a series of recent price target increases and an upgrade from several firms. Analyst Commentary Recent Street research on Johnson & Johnson has leaned more positive, with several firms adjusting price targets higher and one new initiation that frames the shares as a preferred large cap pharmaceutical name.
MCK
US$935.21
McKesson
7D
9.9%
1Y
53.2%

MCK: Refined Assumptions And Supportive Policy Backdrop Will Shape FY26 AOI

The McKesson analyst price target has been raised by about $24 to $966, with analysts pointing to updated fair value work, modest adjustments to the discount rate and growth assumptions, and slightly higher future P/E expectations as key drivers of the change. Analyst Commentary Recent Street research on McKesson clusters around higher price targets and refreshed valuation work, with analysts fine tuning assumptions on growth, discount rates and future P/E multiples.
LLY
US$1,025.00
Eli Lilly
7D
2.1%
1Y
18.5%

LLY: Government Pricing Deals Will Compress Obesity Franchise Economics Going Forward

Analysts have raised their fair value estimate for Eli Lilly from US$770 to about US$884 per share, reflecting updated assumptions on long term obesity opportunities, recent price target increases across several firms, and steady expectations around margins and future P/E multiples. Analyst Commentary The latest batch of research on Eli Lilly revolves around its weight loss and cardiometabolic franchises, expectations for new product launches, and the implications of recent policy developments on pricing and access.
ABBV
US$222.44
AbbVie
7D
-1.4%
1Y
16.0%

ABBV: Future Returns Will Depend On Immunology Pipeline Clarity And M&A Uncertainty

Analysts have trimmed their price targets for AbbVie by a small amount. This reflects slightly lower revenue growth and P/E assumptions, while also incorporating a modestly higher profit margin and recent mixed research views around competition and pipeline visibility.
ISRG
US$495.15
Intuitive Surgical
7D
3.4%
1Y
-16.3%

ISRG: Future Procedure And Platform Execution Will Test Premium Multiple Assumptions

Analysts nudged their price targets higher on Intuitive Surgical, with a modest fair value move to about $468 per share. They recalibrated assumptions around slightly lower revenue growth, higher profit margins, and a somewhat lower future P/E multiple, following a mix of recent target hikes and trims across the Street.
PFE
US$27.61
Pfizer
7D
7.1%
1Y
8.1%

PFE: Obesity Pipeline And LOE Headwinds Will Shape Future Re Rating

Narrative Update Analysts have trimmed their fair value estimate for Pfizer from $36.16 to $35.46, reflecting more cautious assumptions on revenue trends and profit margins, even as some on the Street highlight new assets and deals that they believe could support a higher future P/E multiple. Analyst Commentary Recent Street research on Pfizer highlights a mix of caution and optimism, with several firms reassessing how the pipeline and recent deals might offset upcoming patent expiries and support the valuation over time.
IQV
US$182.45
IQVIA Holdings
7D
-10.5%
1Y
-9.2%
ALNY
US$322.98
Alnylam Pharmaceuticals
7D
-8.2%
1Y
20.1%

ALNY: TTR Franchise Execution Will Support Confidence In 2026 Revenue Guidance

Analysts have trimmed their average price targets on Alnylam Pharmaceuticals by roughly $35 to $70, largely reflecting updated views on Amvuttra revenue trajectories, competitive pressures in ATTR-CM and recent guidance that, while still supported by continued TTR franchise momentum, has prompted more measured growth assumptions. Analyst Commentary Recent research updates show a mixed but generally constructive tone on Alnylam, with several bullish analysts pointing to execution on the TTR franchise, early Amvuttra traction in ATTR-CM and management guidance as key supports for valuation.
BMY
US$60.86
Bristol-Myers Squibb
7D
8.7%
1Y
8.8%

BMY: 2026 Pipeline Readouts And Sector Recovery Will Guide Next Repricing

Our analyst fair value estimate for Bristol Myers Squibb has moved modestly higher to US$58.13 from US$56.26. This reflects updated Street research in which analysts cite a richer mix of potential 2026 pipeline catalysts and a slightly higher assumed future P/E multiple, both of which support recent price target increases across several firms.
TMO
US$539.80
Thermo Fisher Scientific
7D
-5.3%
1Y
-1.0%

TMO: 2026 Tools Upside And AI Partnerships Will Reshape Earnings Power

Analysts have lifted their fair value estimate for Thermo Fisher Scientific from about $662 to roughly $743, citing updated views on discount rates, revenue growth, profit margins, and future P/E assumptions in light of recent price target increases across the Street. Analyst Commentary Street research around Thermo Fisher Scientific has turned more constructive, with a series of higher price targets that align with the updated fair value estimate.
UNH
US$273.22
UnitedHealth Group
7D
-3.9%
1Y
-48.8%
ELV
US$325.64
Elevance Health
7D
-3.8%
1Y
-16.8%

ELV: Medicare Advantage Policy Path Will Drive Future Margin Recovery Potential

The analyst price target for Elevance Health has been trimmed by about $5 to $389.55 as analysts factor in softer revenue growth and profit margin assumptions, partially offset by a slightly higher future P/E multiple and recent mixed target changes across the Street. Analyst Commentary Recent research on Elevance Health reflects a mix of optimism and caution, with several firms adjusting price targets in both directions and updating views on managed care, Medicare Advantage, and the broader policy backdrop.