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

U.S. Healthcare Sector Analysis

UpdatedJan 26, 2026
DataAggregated Company Financials
Companies1392
  • 7D1.1%
  • 3M8.6%
  • 1Y8.9%
  • YTD2.0%

Eli Lilly is up 2.5%, leading the way for the Healthcare industry, which has gained 1.1%. Meanwhile, Abbott Laboratories actually underperformed within the industry, shrinking 12% in the last week. This means that the industry has gained 8.9% 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
Tue, 27 Jan 2026US$6.6tUS$3.2tUS$130.6b28.5x50.6x2.1x
Thu, 25 Dec 2025US$6.6tUS$3.2tUS$135.2b26.4x48.5x2.1x
Sat, 22 Nov 2025US$6.2tUS$3.2tUS$133.4b25.8x46.7x2x
Mon, 20 Oct 2025US$6.0tUS$3.1tUS$140.4b24.8x42.5x1.9x
Wed, 17 Sep 2025US$5.7tUS$3.1tUS$137.5b23.8x41.2x1.8x
Fri, 15 Aug 2025US$5.6tUS$3.1tUS$136.9b23.4x40.5x1.8x
Sun, 13 Jul 2025US$5.5tUS$3.0tUS$127.9b24x43.3x1.8x
Tue, 10 Jun 2025US$5.5tUS$3.0tUS$127.2b23.8x43.2x1.8x
Thu, 08 May 2025US$5.4tUS$3.0tUS$127.1b25x42.7x1.8x
Sat, 05 Apr 2025US$5.5tUS$2.6tUS$82.1b24.7x67x2.1x
Mon, 03 Mar 2025US$5.9tUS$2.6tUS$79.3b27.5x74x2.2x
Wed, 29 Jan 2025US$6.2tUS$2.9tUS$85.5b27.9x72x2.1x
Fri, 27 Dec 2024US$5.9tUS$2.9tUS$78.3b27.6x74.8x2x
Sun, 24 Nov 2024US$6.0tUS$2.9tUS$77.3b28.2x78.1x2.1x
Tue, 22 Oct 2024US$6.2tUS$2.8tUS$58.7b32.1x106.4x2.2x
Thu, 19 Sep 2024US$6.3tUS$2.8tUS$60.2b31.1x104.5x2.2x
Sat, 17 Aug 2024US$6.1tUS$2.8tUS$56.1b32.8x109.5x2.2x
Mon, 15 Jul 2024US$6.3tUS$2.8tUS$62.2b31.2x101.7x2.2x
Wed, 12 Jun 2024US$6.2tUS$2.8tUS$63.6b30.2x97.9x2.2x
Fri, 10 May 2024US$6.1tUS$2.8tUS$62.9b30.6x96.7x2.2x
Sun, 07 Apr 2024US$6.2tUS$2.8tUS$84.1b32.4x73.2x2.2x
Tue, 05 Mar 2024US$6.3tUS$2.8tUS$85.0b31x74x2.3x
Thu, 01 Feb 2024US$6.4tUS$2.8tUS$80.6b31.6x79.2x2.3x
Sat, 30 Dec 2023US$6.2tUS$2.8tUS$91.5b32.6x68.2x2.2x
Mon, 27 Nov 2023US$5.9tUS$2.8tUS$91.4b28.6x64.4x2.1x
Wed, 25 Oct 2023US$5.7tUS$2.8tUS$99.6b24.8x57.3x2x
Fri, 22 Sep 2023US$5.9tUS$2.8tUS$98.6b27.4x60.1x2.1x
Sun, 20 Aug 2023US$6.1tUS$2.8tUS$99.2b27.9x61.4x2.2x
Tue, 18 Jul 2023US$6.0tUS$2.7tUS$110.9b26.1x54x2.2x
Thu, 15 Jun 2023US$6.0tUS$2.7tUS$110.1b25.6x54.1x2.2x
Sat, 13 May 2023US$6.0tUS$2.7tUS$114.6b24.7x52.3x2.2x
Mon, 10 Apr 2023US$5.9tUS$2.5tUS$124.4b24.6x47.6x2.4x
Wed, 08 Mar 2023US$5.7tUS$2.5tUS$122.3b24.8x46.5x2.3x
Fri, 03 Feb 2023US$6.0tUS$2.5tUS$135.3b23.8x44.5x2.4x
Price to Earnings Ratio

44.5x


Total Market Cap: US$6.0tTotal Earnings: US$135.3bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.2x202420252026
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 50.6x which is lower than its 3-year average PE of 65.2x.
  • 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 9.1% 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 and as a result, profits have held steady.

Industry Trends

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

US Market-0.36%
Healthcare1.10%
Biotech3.60%
Healthcare Services2.94%
Pharma1.24%
Life Sciences0.029%
Healthtech-0.92%
Medical Equipment-1.97%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 59.4x.
    • Analysts are expecting annual earnings growth of 17.5%, 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 23% 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 12% 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$1.06k2.5%
+US$23.2b		31.7%PE51.8x
UNH UnitedHealth GroupUS$356.267.6%
+US$22.9b		-34.5%PE18.3x
GILD Gilead SciencesUS$135.938.8%
+US$13.7b		42.6%PE20.8x
ABBV AbbVieUS$219.262.3%
+US$8.7b		23.9%PE165x
AMGN AmgenUS$344.754.3%
+US$7.7b		21.8%PE26.5x

Latest News

ISRG
US$523.99
Intuitive Surgical
7D
-2.1%
1Y
-8.6%
BSX
US$92.51
Boston Scientific
7D
5.0%
1Y
-9.5%

BSX after Penumbra ?

The immediate impact of the Penumbra acquisition has been somewhat heavy on the stock’s valuation for a few key reasons: * Earnings Dilution: The acquisition is expected to be dilutive to adjusted earnings per share (EPS) by approximately $0.06 to $0.08 in the first full year. Investors often react to this "EPS drag" by pulling back, which we've seen in the recent price dips.
LLY
US$1,064.29
Eli Lilly
7D
2.5%
1Y
31.7%

LLY: Government GLP 1 Pricing Deals Will Pressure Obesity Margins

Analysts have nudged their price targets on Eli Lilly slightly higher, citing continued confidence in the obesity and GLP 1 franchise, supportive government pricing agreements, and potential upside from acquisitions and pipeline catalysts, even as some firms fine tune their models and individual targets by low single digit amounts such as Guggenheim's recent US$2 trim. Analyst Commentary Recent research on Eli Lilly has been dominated by optimism around obesity treatments and government pricing agreements, but there is also a pocket of caution that is worth paying attention to if you are thinking about valuation, execution and long term growth risk.
WST
US$236.66
West Pharmaceutical Services
7D
-8.9%
1Y
-31.4%

WST: 2026 Drug Delivery Focus And New Syringe Platform Will Support Earnings Power

Analysts have kept their fair value estimate for West Pharmaceutical Services steady at about $345.71 per share, with only slight tweaks to assumptions like the discount rate, long term revenue growth, profit margin, and future P/E, which together feed into their updated price target narrative. What's in the News West Pharmaceutical Services agreed to sell all manufacturing and supply rights for its SmartDose 3.5 mL On Body Delivery System, along with associated facilities, to AbbVie for total consideration of US$112.5 million at close, subject to working capital and other adjustments (Key Developments).
ABBV
US$219.26
AbbVie
7D
2.3%
1Y
23.9%

ABBV: Future Returns Will Hinge On Post-Humira Immunology And Deal Optionality

Analysts have nudged their price target for AbbVie slightly higher to reflect a fair value estimate of about $245 per share, supported by updated assumptions for revenue growth, profit margins, and a modestly lower future P/E. Recent research highlights both increased price targets and more cautious views around competition and the sustainability of outperformance in key immunology drugs.
CVS
US$83.01
CVS Health
7D
5.6%
1Y
47.7%

CVS: Medicare Advantage And Great Healthcare Plan Will Support Earnings Rebound

Analysts have nudged their average price targets for CVS Health higher, with increases such as Bernstein moving to $91 from $87, BofA to $100 from $89, and RBC to $93 from $81. These changes reflect views that recent policy developments and Q3 results support a steadier outlook for government managed care earnings and potential catalysts in Medicare Advantage.
BDX
US$201.79
Becton Dickinson
7D
-2.6%
1Y
-18.9%
MRK
US$108.18
Merck
7D
-0.6%
1Y
10.5%

MRK: M&A Pipeline And Gardasil Policy Shifts Will Shape Future Risk Balance

Analysts lifted their Merck fair value estimate by about $8.50 to $115.11 per share as they factor in a higher future P/E multiple, recent price target increases from several firms, and growing confidence in the company being added to BofA's "US 1 List." Analyst Commentary Recent research on Merck gives you a mix of confidence in the company’s execution and some clear areas to watch. Here is how the current commentary breaks down.
VRTX
US$468.41
Vertex Pharmaceuticals
7D
6.1%
1Y
5.5%

VRTX: CF Cash Flows And Renal Data Will Shape Balanced Next Phase

Analysts have nudged their fair value estimate for Vertex Pharmaceuticals higher to about $504, citing a slightly richer assumed future P/E multiple and modestly stronger revenue growth expectations, even as they factor in a lower profit margin and a slightly higher discount rate. Analyst Commentary Recent Street research on Vertex Pharmaceuticals has turned more constructive, with several firms shifting to more positive ratings and setting price targets above the current fair value estimate.
ABT
US$107.42
Abbott Laboratories
7D
-11.8%
1Y
-17.0%
SYK
US$355.04
Stryker
7D
-2.4%
1Y
-11.2%

SYK: Orthopedics And Robotics Execution Will Support 2026 Upside Potential

Analysts have inched their average price target on Stryker higher, with a modest fair value lift to about US$427.40, as they weigh mixed target changes across firms against ongoing views that the company remains a high quality large-cap MedTech name heading into 2026. Analyst Commentary Recent Street research on Stryker shows a split tape, with several firms lifting targets and ratings while others trim fair values or stay neutral.
GILD
US$135.93
Gilead Sciences
7D
8.8%
1Y
42.6%

GILD: Extended HIV Franchise Strength Will Support Stronger Long-Term Earnings Power

Analysts have nudged their fair value estimate for Gilead Sciences up to $159 from $153, citing refreshed models that reflect updated HIV franchise expectations, oncology pipeline inputs, and evolving competitive readthroughs from peers in hepatitis and cell therapy. Analyst Commentary Recent Street research around Gilead Sciences has leaned constructive, with several bullish analysts refining their models and resetting price targets while pointing to HIV, oncology, and select liver and autoimmune assets as the key drivers they are watching.
AMGN
US$344.75
Amgen
7D
4.3%
1Y
21.8%

Amgen's (NASDAQ:AMGN) Shareholders Will Receive A Bigger Dividend Than Last Year

Jan 21
Amgen's (NASDAQ:AMGN) Shareholders Will Receive A Bigger Dividend Than Last Year
IDXX
US$693.85
IDEXX Laboratories
7D
-3.0%
1Y
62.3%

IDXX: Rich P/E Leaves Little Room For Cancer Diagnostics Execution Missteps

Analysts have raised their fair value estimate for IDEXX Laboratories from about US$497 to about US$579, citing higher modeled revenue growth, slightly stronger profit margins, a richer future P/E, and increased confidence in the company's product pipeline and recurring diagnostics growth following recent Q3 results and guidance updates. Analyst Commentary Street research after the Q3 update centers on two themes: confidence in IDEXX Laboratories' recurring diagnostics growth and product pipeline, and questions about how much of that strength is already reflected in the share price.
UNH
US$356.26
UnitedHealth Group
7D
7.6%
1Y
-34.5%

Universal Health Services: Why Behavioral Care Is Becoming a Core Earnings Driver

Healthcare investors often focus on hospital occupancy rates, reimbursement shifts, and labor costs. But beneath those headline metrics, a more durable trend is reshaping the industry.
MCK
US$820.23
McKesson
7D
-2.4%
1Y
35.7%

MCK: North American Pharma Strength Will Support FY26 Core AOI Framework

Narrative Update: McKesson Analysts have lifted their McKesson price targets toward a range of about $900 to $1,000, citing solid North American Pharma momentum, modeled core AOI growth of around 7% for FY26, and a robust demand backdrop reflected in peers' recent results. Analyst Commentary Recent research updates reflect a more constructive stance on McKesson, with higher price targets tied to underlying business trends and peer readthroughs rather than short term trading factors.