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U.S. Healthcare Sector Analysis

UpdatedApr 01, 2026
DataAggregated Company Financials
Companies1392
  • 7D1.3%
  • 3M-5.6%
  • 1Y5.3%
  • YTD-5.9%

In the last week, the Healthcare industry is up 1.3%, with Johnson & Johnson leading the way, up 3.9%. Meanwhile, Boston Scientific actually underperformed within the industry, shrinking 7.9% in the last week. This means that the industry has gained 5.3% over the past year. As for the next few years, earnings are expected to grow by 16% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 01 Apr 2026US$6.0tUS$3.3tUS$128.3b22.5x47x1.8x
Fri, 27 Feb 2026US$6.6tUS$3.3tUS$125.7b25.9x52.4x2x
Sun, 25 Jan 2026US$6.6tUS$3.2tUS$130.6b28.5x50.6x2.1x
Tue, 23 Dec 2025US$6.5tUS$3.2tUS$135.2b26.4x48x2x
Thu, 20 Nov 2025US$6.3tUS$3.2tUS$133.1b25.3x47.1x2x
Sat, 18 Oct 2025US$6.0tUS$3.1tUS$140.4b24.8x42.4x1.9x
Mon, 15 Sep 2025US$5.7tUS$3.1tUS$137.6b22.7x41.6x1.9x
Wed, 13 Aug 2025US$5.4tUS$3.1tUS$140.0b23.4x38.5x1.7x
Fri, 11 Jul 2025US$5.6tUS$3.0tUS$127.9b24.4x43.5x1.8x
Sun, 08 Jun 2025US$5.5tUS$3.0tUS$127.2b24x43.2x1.8x
Tue, 06 May 2025US$5.6tUS$2.7tUS$126.0b24.7x44.2x2x
Thu, 03 Apr 2025US$5.5tUS$2.6tUS$81.7b26.5x67.9x2.1x
Sat, 01 Mar 2025US$5.8tUS$2.6tUS$79.3b27.5x73.2x2.2x
Mon, 27 Jan 2025US$6.0tUS$2.9tUS$85.5b27.9x70.7x2.1x
Wed, 25 Dec 2024US$5.8tUS$2.9tUS$78.3b27.4x74.5x2x
Fri, 22 Nov 2024US$6.0tUS$2.9tUS$77.0b27.9x77.6x2x
Sun, 20 Oct 2024US$6.2tUS$2.8tUS$58.8b32.2x106.2x2.2x
Tue, 17 Sep 2024US$6.3tUS$2.8tUS$60.2b30.6x105.1x2.2x
Thu, 15 Aug 2024US$6.1tUS$2.8tUS$55.7b30x109.1x2.2x
Sat, 13 Jul 2024US$6.3tUS$2.8tUS$62.2b31.2x101.1x2.2x
Mon, 10 Jun 2024US$6.2tUS$2.8tUS$63.6b30x97.5x2.2x
Wed, 08 May 2024US$6.1tUS$2.8tUS$64.8b32x94.3x2.2x
Fri, 05 Apr 2024US$6.2tUS$2.8tUS$83.9b32.1x73.6x2.2x
Sun, 03 Mar 2024US$6.3tUS$2.8tUS$85.0b31.2x74.1x2.3x
Tue, 30 Jan 2024US$6.3tUS$2.8tUS$90.7b32x69.8x2.2x
Thu, 28 Dec 2023US$6.2tUS$2.8tUS$91.5b33.1x68x2.2x
Sat, 25 Nov 2023US$5.9tUS$2.8tUS$91.4b28.6x64.4x2.1x
Mon, 23 Oct 2023US$5.7tUS$2.8tUS$99.6b25.6x57.7x2.1x
Wed, 20 Sep 2023US$6.0tUS$2.8tUS$98.6b28.3x60.9x2.2x
Fri, 18 Aug 2023US$6.1tUS$2.8tUS$99.3b28.2x61.9x2.2x
Sun, 16 Jul 2023US$6.0tUS$2.7tUS$110.9b26.3x54x2.2x
Tue, 13 Jun 2023US$6.0tUS$2.7tUS$110.0b25.8x54.4x2.2x
Thu, 11 May 2023US$6.0tUS$2.7tUS$111.8b24.9x54x2.2x
Sat, 08 Apr 2023US$5.9tUS$2.5tUS$121.9b24.2x48.6x2.4x
Price to Earnings Ratio

48.6x


Total Market Cap: US$5.9tTotal Earnings: US$121.9bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.5x202420252026
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 47.0x which is lower than its 3-year average PE of 65.5x.
  • The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.8x.
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 9.6% 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-0.61%
Healthcare1.34%
Biotech3.18%
Pharma2.99%
Life Sciences0.33%
Healthcare Services-1.05%
Medical Equipment-1.30%
Healthtech-2.85%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 55.8x.
    • Analysts are expecting annual earnings growth of 15.9%, which is higher than its past year's earnings growth of 5.7% 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 40% 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
JNJ Johnson & JohnsonUS$244.443.9%
+US$22.1b		59.5%PE22x
ABBV AbbVieUS$217.496.0%
+US$21.7b		5.4%PE91.9x
LLY Eli LillyUS$919.771.9%
+US$15.0b		14.2%PE39.9x
MRK MerckUS$120.293.4%
+US$9.7b		38.1%PE16.3x
BMY Bristol-Myers SquibbUS$60.655.7%
+US$7.0b		1.8%PE17.6x

Latest News

ISRG
US$460.99
Intuitive Surgical
7D
-1.9%
1Y
-9.1%
ABBV
US$217.49
AbbVie
7D
6.0%
1Y
5.4%
LLY
US$919.77
Eli Lilly
7D
1.9%
1Y
14.2%
ABT
US$102.67
Abbott Laboratories
7D
-1.3%
1Y
-22.0%
MRK
US$120.29
Merck
7D
3.4%
1Y
38.1%
BSX
US$62.75
Boston Scientific
7D
-7.9%
1Y
-38.0%
JNJ
US$244.44
Johnson & Johnson
7D
3.9%
1Y
59.5%

Johnson & Johnson (JNJ): The $100 Billion Revenue Frontier and the MedTech Evolution

Johnson & Johnson (JNJ) is currently trading at $242.83 USD on the NYSE as of the afternoon session on March 30, 2026, reflecting a steady 1% gain for the day. After a transformative 2025 that saw the full integration of its "pure-play" healthcare strategy following the Kenvue spin-off, the company has entered 2026 with significant momentum.
UNH
US$270.59
UnitedHealth Group
7D
-0.6%
1Y
-48.3%

UNH: Medicare Advantage Policy Reset Will Support Post 2026 Earnings Recovery

Analysts have made a small adjustment to UnitedHealth Group's outlook, with the average price target moving modestly around the $440 level as they factor in slightly higher long term revenue growth, a marginally stronger profit margin profile, and a slightly lower future P/E assumption following recent sector wide Medicare Advantage commentary and company specific research updates. Analyst Commentary Bullish analysts on UnitedHealth Group are focusing on how recent research updates frame the risk reward around Medicare Advantage and the broader managed care backdrop.
BMY
US$60.65
Bristol-Myers Squibb
7D
5.7%
1Y
1.8%
MCK
US$865.36
McKesson
7D
-1.9%
1Y
28.5%

MCK: Biosimilar And Co Manufacturing Upside Will Shape Future Safe Haven Returns

Analysts have nudged the McKesson fair value estimate slightly higher to about $998, citing a wave of Street price target increases into the $1,040 to $1,050 range and growing focus on potential upside from biosimilars and co-manufacturing. Analyst Commentary Recent Street research around McKesson clusters around two themes: valuation and execution on new growth levers such as biosimilars and co-manufacturing.
HCA
US$473.24
HCA Healthcare
7D
-2.6%
1Y
36.9%

HCA: Future Upside Will Center On Georgia Medicaid SDP Earnings Support

HCA Healthcare's analyst price targets have moved higher by a broad range that stretches into the mid $600s, reflecting analysts' updated models around Georgia's newly approved $1.9b Medicaid SDP program and potential efficiency gains from AI that could influence valuation multiples. Analyst Commentary Recent Street research around HCA Healthcare centers on two themes that matter for valuation: the newly approved Georgia Medicaid SDP program and potential AI driven efficiency gains.
REGN
US$772.64
Regeneron Pharmaceuticals
7D
4.2%
1Y
25.2%
COR
US$314.14
Cencora
7D
-4.0%
1Y
13.2%

COR: Rare Disease Partnerships Will Support Long-Term Upside For Capital Markets Access

Analysts have adjusted their fair value estimate for Cencora to about $408 from $410, reflecting small tweaks to assumptions around the discount rate, revenue growth, profit margin, and future P/E rather than a major shift in the story. What's in the News Cencora plans for Chief Financial Officer James F.
PFE
US$28.08
Pfizer
7D
4.2%
1Y
14.4%
INSM
US$163.52
Insmed
7D
10.3%
1Y
122.7%
DXCM
US$62.80
DexCom
7D
-5.7%
1Y
-6.7%

DXCM: AI Coaching And Buybacks Will Support Future Market Share Confidence

DexCom's fair value estimate edges up by about $0.27 as analysts fine tune assumptions on the discount rate, revenue growth, profit margin, and future P/E, following a mix of price target changes across the Street, including recent upward revisions toward $84 to $86 and a lower $71 target tied to competition concerns. Analyst Commentary Recent Street research on DexCom reflects a split view, with some firms nudging targets higher into the mid $80s and others pushing back toward the low $70s on competition concerns.