Investing IdeasBrowse All StocksMarkets

Have your own idea? Try our Stock Screener

Header cover image

U.S. Healthcare Sector Analysis

UpdatedDec 27, 2024
DataAggregated Company Financials
Companies1412
  • 7D2.8%
  • 3M-8.1%
  • 1Y1.8%
  • YTD0.2%

The Healthcare industry is up 2.5% in the last week, with Eli Lilly up 5.0%. Despite this gain, the industry's performance has been flat over the past year. Earnings are forecast to grow by 22% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Sun, 01 Jan 2023US$6.1tUS$2.5tUS$135.6b23.1x44.7x2.5x
Tue, 29 Nov 2022US$6.0tUS$2.4tUS$133.6b23.8x44.8x2.5x
Thu, 27 Oct 2022US$5.8tUS$2.4tUS$157.4b22.8x37.1x2.4x
Sat, 24 Sep 2022US$5.5tUS$2.4tUS$155.9b20.7x35.4x2.3x
Mon, 22 Aug 2022US$6.0tUS$2.4tUS$157.0b24x38.4x2.5x
Wed, 20 Jul 2022US$5.9tUS$2.6tUS$165.3b24.9x35.8x2.3x
Fri, 17 Jun 2022US$5.4tUS$2.6tUS$165.3b22.8x32.4x2.1x
Sun, 15 May 2022US$5.7tUS$2.6tUS$164.8b25x34.9x2.2x
Tue, 12 Apr 2022US$6.5tUS$2.5tUS$174.7b29.4x37.5x2.6x
Thu, 10 Mar 2022US$6.2tUS$2.5tUS$171.0b28.1x36.1x2.5x
Sat, 05 Feb 2022US$6.3tUS$2.4tUS$165.0b29.7x38.2x2.6x
Mon, 03 Jan 2022US$6.9tUS$2.4tUS$145.5b32.9x47.5x2.9x
Price to Earnings Ratio

47.5x


Total Market Cap: US$6.9tTotal Earnings: US$145.5bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 60.5x20232024
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 74.8x which is higher than its 3-year average PE of 60.5x.
  • The 3-year average PS ratio of 2.3x is higher than the industry's current PS ratio of 2.0x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have declined 19% per year over the last three years.
  • Meanwhile revenues for these companies have grown 6.7% 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, which has decreased profits.

Industry Trends

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

US Market2.83%
Healthcare2.84%
Healthcare Services3.34%
Pharma2.99%
Medical Equipment2.71%
Biotech2.59%
Life Sciences2.46%
Healthtech1.05%
Industry PE
  • Investors are most optimistic about the Life Sciences industry which is trading above its 3-year average PE ratio of 57.2x.
    • Analysts are expecting annual earnings growth of 17.7%, which is higher than its past year's earnings decline of 4.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Healthtech industry, expecting annual earnings growth of 32% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Medical Equipment industry is expected to see its earnings grow by 17% 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$794.144.8%
+US$33.0b		36.7%PE85.4x
UNH UnitedHealth GroupUS$511.154.5%
+US$20.2b		-2.6%PE32.9x
ABBV AbbVieUS$179.204.5%
+US$13.6b		15.8%PE62.3x
ISRG Intuitive SurgicalUS$538.832.8%
+US$5.3b		59.2%PE85.6x
ABT Abbott LaboratoriesUS$115.272.5%
+US$4.9b		4.4%PE34.8x
Simply Wall St™
Simply Wall Street Pty Ltd
Level 7, 320 Pitt Street, Sydney
Download on the App StoreGet it on Google Play
Popular Markets
USAUUKINCAZA
About UsCareersPlans & PricingLogin
Help CenterLatest CoveragePodcastsAffiliate ProgramBusiness & EnterpriseWhat's New
Financial Services GuideTerms and ConditionsPrivacy Policy
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

ISRG

US$538.83

Intuitive Surgical

7D

2.8%

1Y

59.2%

Intuitive Surgical: Growing Impressively, But It Appears Overvalued

Dec 27

VEEV

US$214.86

Veeva Systems

7D

-2.2%

1Y

10.7%

SYK

US$369.42

Stryker

7D

3.4%

1Y

23.5%

PFE

US$26.56

Pfizer

7D

3.1%

1Y

-7.7%

Pfizer: Time And Patience Ran Out (Rating Downgrade)

Dec 24

UNH

US$511.15

UnitedHealth Group

7D

4.5%

1Y

-2.6%

UnitedHealth Group: Recent Pullback Is A Buying Opportunity For Dividend Growth Investors (Rating Upgrade)

Dec 23

ABT

US$115.27

Abbott Laboratories

7D

2.5%

1Y

4.4%

Abbott Laboratories: A Future-Driven Pharma Brand With A Robust Pipeline

Dec 21

LLY

US$794.14

Eli Lilly

7D

4.8%

1Y

36.7%

NUVL

US$82.06

Nuvalent

7D

-3.0%

1Y

9.3%

JNJ

US$145.58

Johnson & Johnson

7D

1.4%

1Y

-7.0%

Johnson & Johnson: Dividend Legend At A Discount

Dec 19

EWTX

US$29.66

Edgewise Therapeutics

7D

-3.7%

1Y

157.9%

GERN

US$3.30

Geron

7D

-9.8%

1Y

53.5%

ABBV

US$179.20

AbbVie

7D

4.5%

1Y

15.8%

LEGN

US$32.78

Legend Biotech

7D

-3.6%

1Y

-45.2%

RXST

US$35.05

RxSight

7D

-8.2%

1Y

-14.1%

The Price Is Right For RxSight, Inc. (NASDAQ:RXST)

Dec 06
The Price Is Right For RxSight, Inc. (NASDAQ:RXST)

PEN

US$240.54

Penumbra

7D

-1.2%

1Y

-5.8%

RENB

US$0.91

Renovaro

7D

-41.3%

1Y

-71.6%