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U.S. Healthcare Sector Analysis

UpdatedNov 14, 2025
DataAggregated Company Financials
Companies1369
  • 7D3.8%
  • 3M11.7%
  • 1Y5.7%
  • YTD8.5%

In the last week, the Healthcare industry is up 3.8%, with Eli Lilly up 6.1%. This takes the industry's 12 month performance to a gain of 5.7%. As for the next few years, earnings are expected to grow by 17% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 18 Nov 2025US$6.3tUS$3.2tUS$133.4b26x47.2x2x
Thu, 16 Oct 2025US$5.9tUS$3.1tUS$140.4b24.5x42.3x1.9x
Sat, 13 Sep 2025US$5.8tUS$3.1tUS$137.6b22.7x42.1x1.9x
Mon, 11 Aug 2025US$5.4tUS$3.1tUS$139.7b23.3x38.5x1.7x
Wed, 09 Jul 2025US$5.5tUS$3.0tUS$127.9b24.2x42.9x1.8x
Fri, 06 Jun 2025US$5.4tUS$3.0tUS$127.2b23.4x42.8x1.8x
Sun, 04 May 2025US$5.6tUS$2.7tUS$126.2b24.8x44.1x2x
Tue, 01 Apr 2025US$5.6tUS$2.6tUS$81.9b26.3x69x2.1x
Thu, 27 Feb 2025US$5.9tUS$2.6tUS$79.6b25.5x73.7x2.2x
Sat, 25 Jan 2025US$6.0tUS$2.9tUS$85.5b27.9x70.7x2.1x
Mon, 23 Dec 2024US$5.8tUS$2.9tUS$78.2b27.7x73.5x2x
Wed, 20 Nov 2024US$5.9tUS$2.9tUS$76.7b27.1x77.3x2x
Fri, 18 Oct 2024US$6.2tUS$2.8tUS$58.6b31.2x106.6x2.2x
Sun, 15 Sep 2024US$6.3tUS$2.8tUS$60.0b30.6x105.4x2.2x
Tue, 13 Aug 2024US$6.0tUS$2.8tUS$55.3b30.1x108.9x2.1x
Thu, 11 Jul 2024US$6.2tUS$2.8tUS$62.2b30x99x2.2x
Sat, 08 Jun 2024US$6.2tUS$2.8tUS$63.7b30x97.5x2.2x
Mon, 06 May 2024US$6.0tUS$2.8tUS$65.2b31.1x92.6x2.1x
Wed, 03 Apr 2024US$6.3tUS$2.8tUS$84.0b32.5x74.9x2.3x
Fri, 01 Mar 2024US$6.3tUS$2.8tUS$84.2b30.9x74.6x2.3x
Sun, 28 Jan 2024US$6.3tUS$2.8tUS$90.7b32x69.7x2.2x
Tue, 26 Dec 2023US$6.2tUS$2.8tUS$91.5b33.1x67.4x2.2x
Thu, 23 Nov 2023US$5.8tUS$2.8tUS$91.2b28x63.5x2.1x
Sat, 21 Oct 2023US$5.7tUS$2.8tUS$99.6b25.6x57.7x2.1x
Mon, 18 Sep 2023US$6.0tUS$2.8tUS$98.6b29.3x61x2.2x
Wed, 16 Aug 2023US$6.2tUS$2.8tUS$99.4b29x62.3x2.2x
Fri, 14 Jul 2023US$5.9tUS$2.7tUS$110.5b26.3x53.4x2.2x
Sun, 11 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Tue, 09 May 2023US$6.0tUS$2.7tUS$111.2b24.9x54.2x2.2x
Thu, 06 Apr 2023US$5.9tUS$2.5tUS$121.8b24.2x48.4x2.4x
Sat, 04 Mar 2023US$5.8tUS$2.5tUS$122.5b25.3x47.3x2.3x
Mon, 30 Jan 2023US$6.0tUS$2.5tUS$133.9b23.8x44.6x2.4x
Wed, 28 Dec 2022US$6.0tUS$2.4tUS$135.7b22.9x44.1x2.4x
Fri, 25 Nov 2022US$6.0tUS$2.4tUS$133.7b24x44.9x2.5x
Price to Earnings Ratio

44.9x


Total Market Cap: US$6.0tTotal Earnings: US$133.7bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65x202320242025
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 47.2x which is lower than its 3-year average PE of 65.0x.
  • 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 9.2% 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-0.39%
Healthcare3.77%
Pharma7.30%
Biotech5.08%
Life Sciences1.98%
Medical Equipment1.73%
Healthcare Services-0.85%
Healthtech-2.67%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 61.4x.
    • Analysts are expecting annual earnings growth of 18.9%, which is higher than its past year's earnings decline of 5.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 24% over the next 5 years.
  • However this is lower than its past earnings growth rate of 52% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 13% 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$1.02k5.7%
+US$49.3b		40.5%PE49.7x
ABBV AbbVieUS$234.007.0%
+US$27.0b		40.7%PE176.1x
JNJ Johnson & JohnsonUS$199.585.9%
+US$26.9b		29.0%PE19.1x
MRK MerckUS$92.867.0%
+US$15.2b		-3.8%PE12.1x
AMGN AmgenUS$341.715.6%
+US$9.7b		22.6%PE26.3x

Latest News

JNJ
US$195.93
Johnson & Johnson
7D
4.0%
1Y
26.6%
HIMS
US$36.98
Hims & Hers Health
7D
-9.9%
1Y
76.2%
RMD
US$244.46
ResMed
7D
-2.3%
1Y
2.1%
AMGN
US$336.74
Amgen
7D
4.0%
1Y
20.8%

AMGN: Future Pipeline Progress And Profit Margins Will Guide Near-Term Performance

Amgen's fair value target has increased by approximately $7 to $318.51, as analysts highlight robust profit margin improvement and sustained pipeline progress in their latest updates. Analyst Commentary Recent updates from Wall Street reveal a mix of optimism and caution surrounding Amgen’s outlook.
ABBV
US$232.36
AbbVie
7D
6.2%
1Y
39.7%
ARDT
US$9.01
Ardent Health
7D
-34.0%
1Y
-47.0%

ARDT: Margin Initiatives Will Drive Share Recovery Despite Persistent Cost Headwinds

Ardent Health's fair value estimate has been revised down from $19.08 to $15.62. Analysts cite ongoing cost pressures, weaker guidance, and concerns over revenue growth as key factors behind the lower price targets.
LLY
US$1,025.28
Eli Lilly
7D
6.1%
1Y
41.0%

LLY: Upcoming Drug Price Reductions and Policy Debates Will Shape Future Opportunities and Risks

The analyst price target for Eli Lilly has increased by over $80 to approximately $1,003 per share. Analysts point to accelerating revenue growth, higher profit margins, and ongoing strength in the company's obesity drug franchise as drivers of greater long-term value.
DHR
US$221.21
Danaher
7D
4.8%
1Y
-3.8%
GILD
US$125.02
Gilead Sciences
7D
5.8%
1Y
41.3%
BMY
US$46.65
Bristol-Myers Squibb
7D
-1.3%
1Y
-17.9%
MRK
US$92.92
Merck
7D
7.1%
1Y
-3.8%
ABT
US$130.59
Abbott Laboratories
7D
3.7%
1Y
11.3%

ABT: Momentum From Legal Win And Product Approvals Will Support Future Gains

Analysts have modestly revised their price targets for Abbott Laboratories, with recent updates ranging from $142 to $146 per share. They cite strong momentum in Medical Devices and a resilient, diversified business model, despite varied performance across business segments.
ISRG
US$549.51
Intuitive Surgical
7D
-4.6%
1Y
3.4%
IDXX
US$689.93
IDEXX Laboratories
7D
-2.8%
1Y
64.3%
MCK
US$842.09
McKesson
7D
-2.0%
1Y
36.8%
WST
US$261.36
West Pharmaceutical Services
7D
-5.1%
1Y
-14.9%

WST: Sustained Earnings Momentum Will Drive Confidence Into 2026

West Pharmaceutical Services has seen its average analyst price target rise from approximately $321 to $351. Analysts cite continued growth drivers and improved market conditions following a strong quarterly performance.