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U.S. Healthcare Sector Analysis

UpdatedFeb 07, 2026
DataAggregated Company Financials
Companies1388
  • 7D1.2%
  • 3M8.0%
  • 1Y7.2%
  • YTD0.8%

Last week, the Healthcare industry hasn't moved much but Johnson & Johnson is up 5.6% in that time. The past year has been better, since the industry has gained 4.4% 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
Sat, 07 Feb 2026US$6.4tUS$3.3tUS$125.4b27.1x51.4x2x
Mon, 05 Jan 2026US$6.5tUS$3.2tUS$135.6b25.7x47.8x2x
Wed, 03 Dec 2025US$6.4tUS$3.2tUS$133.5b25.7x47.9x2x
Fri, 31 Oct 2025US$6.0tUS$3.1tUS$124.5b25.8x48x1.9x
Sun, 28 Sep 2025US$5.7tUS$3.1tUS$137.6b23.6x41.1x1.8x
Tue, 26 Aug 2025US$5.7tUS$3.1tUS$137.2b23.4x41.5x1.8x
Thu, 24 Jul 2025US$5.5tUS$3.0tUS$128.5b25.3x42.7x1.8x
Sat, 21 Jun 2025US$5.5tUS$3.0tUS$127.4b23.7x42.8x1.8x
Mon, 19 May 2025US$5.4tUS$3.0tUS$126.1b23.3x42.9x1.8x
Wed, 16 Apr 2025US$5.4tUS$2.6tUS$89.8b25.2x60x2x
Fri, 14 Mar 2025US$5.6tUS$2.6tUS$74.9b26.1x75.2x2.1x
Sun, 09 Feb 2025US$5.9tUS$2.6tUS$89.8b26.5x65.5x2.2x
Tue, 07 Jan 2025US$5.8tUS$2.9tUS$79.3b27.4x73.3x2x
Thu, 05 Dec 2024US$6.1tUS$2.9tUS$77.5b29.5x79.2x2.1x
Sat, 02 Nov 2024US$6.1tUS$2.9tUS$71.3b28.4x85.8x2.1x
Mon, 30 Sep 2024US$6.2tUS$2.9tUS$70.6b30.1x87.9x2.1x
Wed, 28 Aug 2024US$6.3tUS$2.8tUS$56.5b31.8x111x2.2x
Fri, 26 Jul 2024US$6.4tUS$2.8tUS$61.6b31.6x103.4x2.2x
Sun, 23 Jun 2024US$6.2tUS$2.8tUS$62.5b30x99.2x2.2x
Tue, 21 May 2024US$6.2tUS$2.8tUS$64.1b30.9x97.2x2.2x
Thu, 18 Apr 2024US$5.9tUS$2.8tUS$84.3b30.5x70.3x2.1x
Sat, 16 Mar 2024US$6.2tUS$2.8tUS$84.5b31x73.9x2.2x
Mon, 12 Feb 2024US$6.2tUS$2.8tUS$76.3b31.6x81x2.2x
Wed, 10 Jan 2024US$6.4tUS$2.8tUS$90.1b31.9x70.9x2.3x
Fri, 08 Dec 2023US$6.0tUS$2.8tUS$91.4b29x65.1x2.1x
Sun, 05 Nov 2023US$5.7tUS$2.8tUS$88.4b26.7x65x2x
Tue, 03 Oct 2023US$5.9tUS$2.8tUS$98.2b26.7x59.7x2.1x
Thu, 31 Aug 2023US$6.1tUS$2.8tUS$98.7b27.9x62.2x2.2x
Sat, 29 Jul 2023US$6.1tUS$2.8tUS$115.6b28x52.5x2.2x
Mon, 26 Jun 2023US$6.0tUS$2.7tUS$109.8b26.6x54.8x2.2x
Wed, 24 May 2023US$5.9tUS$2.7tUS$110.9b24.4x53.5x2.2x
Fri, 21 Apr 2023US$5.9tUS$2.5tUS$117.6b24.3x50.6x2.4x
Sun, 19 Mar 2023US$5.6tUS$2.5tUS$123.9b23.3x45.3x2.3x
Tue, 14 Feb 2023US$6.0tUS$2.5tUS$130.1b24.2x46x2.4x
Price to Earnings Ratio

46x


Total Market Cap: US$6.0tTotal Earnings: US$130.1bTotal 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 51.7x 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 9.4% 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-0.12%
Healthcare1.22%
Pharma4.59%
Biotech3.78%
Healthcare Services-0.16%
Medical Equipment-2.19%
Life Sciences-5.24%
Healthtech-11.57%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry, which is trading close to its 3-year average PE ratio of 56.4x.
    • Analysts are expecting annual earnings growth of 16.5%, which is higher than its past year's earnings growth of 6.5% 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 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
JNJ Johnson & JohnsonUS$239.995.6%
+US$30.7b		56.7%PE21.6x
MRK MerckUS$121.9310.6%
+US$28.9b		39.7%PE16.6x
AMGN AmgenUS$384.3212.4%
+US$22.9b		30.9%PE26.8x
LLY Eli LillyUS$1.06k2.0%
+US$18.8b		20.5%PE45.9x
BMY Bristol-Myers SquibbUS$61.9912.6%
+US$14.1b		9.0%PE17.9x

Latest News

MRK
US$121.93
Merck
7D
10.6%
1Y
39.7%
JNJ
US$239.99
Johnson & Johnson
7D
5.6%
1Y
56.7%
ILMN
US$119.72
Illumina
7D
-17.3%
1Y
7.8%
BMY
US$61.99
Bristol-Myers Squibb
7D
12.6%
1Y
9.0%
IQV
US$187.49
IQVIA Holdings
7D
-18.5%
1Y
-9.9%
NTRA
US$203.04
Natera
7D
-12.2%
1Y
17.5%
GILD
US$152.50
Gilead Sciences
7D
7.4%
1Y
58.8%
SYK
US$358.29
Stryker
7D
-3.0%
1Y
-8.5%

SYK: Orthopedics And Robotics Execution Will Support 2026 Rebound In Medtech Sentiment

Analysts have reduced their fair value estimate for Stryker by about $3 to $424, reflecting slightly softer revenue growth assumptions, a future P/E multiple closer to 34, and a modestly higher profit margin outlook following recent mixed price target changes across Wall Street. Analyst Commentary Recent research coverage on Stryker reflects a mix of optimism and caution, with several firms adjusting price targets and ratings in different directions.
LLY
US$1,058.18
Eli Lilly
7D
2.0%
1Y
20.5%
AMGN
US$384.32
Amgen
7D
12.4%
1Y
30.9%
BSX
US$76.27
Boston Scientific
7D
-18.5%
1Y
-27.5%
MCK
US$948.68
McKesson
7D
14.1%
1Y
59.3%
TMO
US$542.83
Thermo Fisher Scientific
7D
-6.2%
1Y
-5.0%

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$276.65
UnitedHealth Group
7D
-3.6%
1Y
-47.5%
ISRG
US$488.15
Intuitive Surgical
7D
-3.2%
1Y
-16.3%
CVS
US$78.35
CVS Health
7D
5.1%
1Y
45.1%

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.