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U.S. Healthcare Sector Analysis

UpdatedApr 05, 2026
DataAggregated Company Financials
Companies1391
  • 7D3.5%
  • 3M-5.4%
  • 1Y12.7%
  • YTD-5.4%

The Healthcare industry is up 3.5% in the last week, with Eli Lilly up 6.5%. In the same time, Boston Scientific was down 9.2%. In the last 12 months, the industry was up 13%. 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
Sun, 05 Apr 2026US$6.2tUS$3.3tUS$127.9b22.2x48.4x1.9x
Tue, 03 Mar 2026US$6.7tUS$3.3tUS$127.6b25.5x52.2x2x
Thu, 29 Jan 2026US$6.5tUS$3.2tUS$126.1b27.2x51.8x2x
Sat, 27 Dec 2025US$6.6tUS$3.2tUS$135.2b26.5x48.5x2.1x
Mon, 24 Nov 2025US$6.4tUS$3.2tUS$133.7b25.8x47.5x2x
Wed, 22 Oct 2025US$6.0tUS$3.1tUS$140.5b25.2x43.1x2x
Fri, 19 Sep 2025US$5.7tUS$3.1tUS$137.5b23.8x41.3x1.8x
Sun, 17 Aug 2025US$5.7tUS$3.1tUS$137.1b23.1x41.2x1.8x
Tue, 15 Jul 2025US$5.5tUS$3.0tUS$127.9b24.2x43.3x1.8x
Thu, 12 Jun 2025US$5.6tUS$3.0tUS$127.2b24.1x43.7x1.8x
Sat, 10 May 2025US$5.4tUS$3.0tUS$126.6b24.2x42.9x1.8x
Mon, 07 Apr 2025US$5.2tUS$2.6tUS$82.2b24.7x63.5x2x
Wed, 05 Mar 2025US$5.8tUS$2.6tUS$79.3b27.5x73.8x2.2x
Fri, 31 Jan 2025US$6.1tUS$2.9tUS$85.0b27.9x71.7x2.1x
Sun, 29 Dec 2024US$5.8tUS$2.9tUS$78.3b26.8x74.4x2x
Tue, 26 Nov 2024US$6.0tUS$2.9tUS$77.2b28.4x78.1x2.1x
Thu, 24 Oct 2024US$6.1tUS$2.8tUS$58.6b29.8x104.9x2.2x
Sat, 21 Sep 2024US$6.3tUS$2.8tUS$60.1b30.2x105.1x2.2x
Mon, 19 Aug 2024US$6.2tUS$2.8tUS$56.0b32.8x109.8x2.2x
Wed, 17 Jul 2024US$6.3tUS$2.8tUS$62.2b31.9x101.4x2.2x
Fri, 14 Jun 2024US$6.2tUS$2.8tUS$62.4b29.8x99.4x2.2x
Sun, 12 May 2024US$6.1tUS$2.8tUS$64.0b30.7x95.5x2.2x
Tue, 09 Apr 2024US$6.2tUS$2.8tUS$84.1b32.4x73.2x2.2x
Thu, 07 Mar 2024US$6.2tUS$2.8tUS$85.1b32.1x73.4x2.2x
Sat, 03 Feb 2024US$6.4tUS$2.8tUS$76.5b31.9x84.1x2.3x
Mon, 01 Jan 2024US$6.2tUS$2.8tUS$91.5b32.8x68.1x2.2x
Wed, 29 Nov 2023US$5.9tUS$2.8tUS$91.4b28x64x2.1x
Fri, 27 Oct 2023US$5.6tUS$2.8tUS$101.3b24.3x55.6x2x
Sun, 24 Sep 2023US$5.9tUS$2.8tUS$98.6b27.7x60x2.1x
Tue, 22 Aug 2023US$6.1tUS$2.8tUS$99.2b28x61.4x2.2x
Thu, 20 Jul 2023US$6.0tUS$2.7tUS$111.1b26.7x54.2x2.2x
Sat, 17 Jun 2023US$6.0tUS$2.7tUS$109.9b26.4x54.8x2.2x
Mon, 15 May 2023US$6.0tUS$2.7tUS$114.7b24.7x52.3x2.2x
Wed, 12 Apr 2023US$5.9tUS$2.5tUS$123.2b24.8x48.3x2.4x
Price to Earnings Ratio

48.3x


Total Market Cap: US$5.9tTotal Earnings: US$123.2bTotal 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 48.4x which is lower than its 3-year average PE of 65.5x.
  • 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 9.9% 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 Market3.46%
Healthcare3.50%
Life Sciences5.45%
Biotech5.00%
Healthcare Services4.45%
Pharma3.83%
Healthtech0.06%
Medical Equipment0.0019%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 55.7x.
    • Analysts are expecting annual earnings growth of 16.0%, which is higher than its past year's earnings growth of 6.8% 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
LLY Eli LillyUS$935.586.5%
+US$51.3b		26.7%PE40.6x
UNH UnitedHealth GroupUS$277.267.0%
+US$16.6b		-47.2%PE20.9x
PFE PfizerUS$28.324.7%
+US$7.3b		23.3%PE20.8x
DHR DanaherUS$191.125.3%
+US$6.8b		5.1%PE37.6x
GILD Gilead SciencesUS$139.714.1%
+US$6.8b		30.3%PE20.4x

Latest News

JNJ
US$243.04
Johnson & Johnson
7D
1.1%
1Y
58.6%

Johnson & Johnson: Success In Multiple Myeloma Underpins $25B In Growth By 2030

Apr 04
ABT
US$102.87
Abbott Laboratories
7D
-1.1%
1Y
-17.3%
GILD
US$139.71
Gilead Sciences
7D
4.1%
1Y
30.3%

GILD: HIV And PrEP Franchise Will Support Future Earnings And Margin Strength

Analysts have lifted the fair value estimate for Gilead Sciences to $180 from $159, citing higher modeled revenue growth, a slightly lower discount rate, and support from a wave of recent price target raises and positive initiation commentary on the company’s positioning and operating margins. Analyst Commentary Street research around Gilead Sciences has been active, with several bullish analysts updating their views and price targets in recent weeks.
TMO
US$491.46
Thermo Fisher Scientific
7D
3.8%
1Y
12.2%

TMO: 2026 Tools Recovery And AI Labs Adoption Will Drive Upside

The analyst price target for Thermo Fisher has been adjusted slightly, with the updated fair value moving from about $742.76 to $738.42 as analysts factor in modest tweaks to revenue growth, profit margin, and future P/E assumptions following a series of supportive target increases across recent Street research. Analyst Commentary Recent research points to generally constructive sentiment around Thermo Fisher Scientific, with several bullish analysts revisiting their models, adjusting fair value estimates, and flagging potential catalysts that could influence how investors think about the shares over the next few years.
DHR
US$191.12
Danaher
7D
5.3%
1Y
5.1%

DHR: Cash Deal For Masimo Will Support Premium Future Earnings Multiple

Analysts have nudged Danaher’s price targets higher by low double digit dollar amounts, pointing to updated views on discount rates, revenue growth, profit margins and future P/E assumptions as the key drivers behind the revised dollar values. Analyst Commentary Recent research has focused on how Danaher’s valuation reflects expectations for future execution, especially in light of the planned Masimo acquisition and refreshed targets across the life science tools peer group.
LLY
US$935.58
Eli Lilly
7D
6.5%
1Y
26.7%
VRDN
US$18.84
Viridian Therapeutics
7D
-31.2%
1Y
57.1%
ABBV
US$208.84
AbbVie
7D
-0.3%
1Y
11.7%
BIIB
US$177.34
Biogen
7D
-3.5%
1Y
44.2%
BSX
US$62.82
Boston Scientific
7D
-9.2%
1Y
-30.0%
UHS
US$176.70
Universal Health Services
7D
-4.0%
1Y
1.2%

UHS: Future Volumes And Policy Risk Will Drive Upside From Buybacks

Analyst price targets for Universal Health Services have edged lower by $1.65. This reflects mixed views on weaker recent acute results, guidance that aligns with consensus but assumes stronger future volumes, and differing opinions on the impact of policy changes and payor mix risk.
UNH
US$277.26
UnitedHealth Group
7D
7.0%
1Y
-47.2%

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.
MDT
US$86.63
Medtronic
7D
-0.6%
1Y
4.5%
CVS
US$73.49
CVS Health
7D
4.9%
1Y
15.4%

CVS: Medicare Advantage Turnaround And FTC Settlement Will Support Earnings Recovery

Analysts have slightly raised their fair value estimate for CVS Health to $96.50, citing improving clarity around potential FTC settlements and a perceived Medicare Advantage turnaround. These developments could support a higher future P/E multiple, even with more conservative assumptions for revenue growth and profit margins.
PFE
US$28.32
Pfizer
7D
4.7%
1Y
23.3%
DVA
US$145.58
DaVita
7D
-5.7%
1Y
-2.6%

DVA: Ongoing Buybacks And Revised P/E Assumptions Will Shape Future Returns

DaVita’s analyst price target has been revised to $151.71, with analysts pointing to updated assumptions around the discount rate and forward P/E as key drivers of the refreshed outlook. Analyst Commentary Recent Street research on DaVita points to a cluster of higher price targets, with several firms revisiting their models around discount rates and forward P/E assumptions.