Deere (NYSE:DE) Shareholders Will Want The ROCE Trajectory To Continue
Feb 04
U.S. Industrials Sector Analysis
UpdatedFeb 07, 2023
DataAggregated Company Financials
Companies1074
- 7D1.0%
- 3M8.5%
- 1Y-0.8%
- YTD6.0%
Over the last 7 days, the Industrials industry has risen 1.0%, driven by gains in United Parcel Service and Uber Technologies of 6.7% and 14%, respectively. Despite this gain, the industry's performance has been flat over the past year. As for the next few years, earnings are expected to grow by 13% per annum.
Sector Valuation and Performance
Has the U.S. Industrials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 07 Feb 2023 | US$4.2t | US$2.5t | US$161.3b | 19.2x | 26x | 1.7x |
| Thu, 05 Jan 2023 | US$4.0t | US$2.5t | US$153.2b | 17.6x | 26x | 1.6x |
| Sat, 03 Dec 2022 | US$4.2t | US$2.5t | US$154.0b | 18x | 27x | 1.7x |
| Mon, 31 Oct 2022 | US$3.9t | US$2.5t | US$155.8b | 17.2x | 24.9x | 1.6x |
| Wed, 28 Sep 2022 | US$3.5t | US$2.4t | US$146.4b | 15.2x | 23.7x | 1.4x |
| Fri, 26 Aug 2022 | US$4.0t | US$2.4t | US$146.2b | 18.1x | 27.4x | 1.7x |
| Sun, 24 Jul 2022 | US$3.7t | US$2.3t | US$143.3b | 17x | 26x | 1.6x |
| Tue, 21 Jun 2022 | US$3.5t | US$2.3t | US$144.9b | 16.1x | 24.1x | 1.5x |
| Thu, 19 May 2022 | US$3.9t | US$2.3t | US$143.4b | 17.1x | 27x | 1.7x |
| Sat, 16 Apr 2022 | US$4.2t | US$2.2t | US$149.1b | 19.7x | 27.9x | 1.9x |
| Mon, 14 Mar 2022 | US$4.2t | US$2.2t | US$155.0b | 20.6x | 26.9x | 1.9x |
| Wed, 09 Feb 2022 | US$4.3t | US$2.2t | US$139.5b | 21.8x | 31x | 1.9x |
| Fri, 07 Jan 2022 | US$4.6t | US$2.2t | US$134.3b | 24.3x | 34.1x | 2.1x |
| Sun, 05 Dec 2021 | US$4.4t | US$2.1t | US$142.6b | 23.7x | 31.2x | 2.1x |
| Tue, 02 Nov 2021 | US$4.6t | US$2.1t | US$136.1b | 24.9x | 33.6x | 2.2x |
| Thu, 30 Sep 2021 | US$4.3t | US$2.1t | US$123.8b | 24.7x | 35x | 2.1x |
| Sat, 28 Aug 2021 | US$4.5t | US$2.1t | US$122.7b | 25.3x | 36.5x | 2.2x |
| Sun, 04 Jul 2021 | US$4.4t | US$2.0t | US$121.1b | 24.6x | 36.6x | 2.2x |
| Wed, 07 Apr 2021 | US$4.1t | US$1.9t | US$86.4b | 29x | 47.6x | 2.2x |
| Sat, 09 Jan 2021 | US$3.6t | US$1.8t | US$67.5b | 26.2x | 52.7x | 2x |
| Fri, 02 Oct 2020 | US$3.2t | US$1.9t | US$74.4b | 21.9x | 42.4x | 1.7x |
| Mon, 06 Jul 2020 | US$2.8t | US$1.9t | US$82.5b | 20.2x | 34.3x | 1.5x |
| Thu, 09 Apr 2020 | US$2.4t | US$2.0t | US$110.0b | 14.3x | 21.6x | 1.2x |
Price to Earnings Ratio
24.1x
Current Industry PE
- Investors are pessimistic on the American Industrials 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 26.1x which is lower than its 3-year average PE of 34.2x.
- The industry is trading close to its 3-year average PS ratio of 1.8x.
Past Earnings Growth
- The earnings for companies in the Industrials industry have grown 10% per year over the last three years.
- Revenues for these companies have grown 7.8% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Industrials sector?
| US Market | 0.88% | |
| Industrials | 1.02% | |
| Trade Distributors | 4.09% | |
| Transportation | 3.44% | |
| Logistics | 3.16% | |
| Marine and Shipping | 3.02% | |
| Infrastructure | 2.78% | |
| Airlines | 2.18% | |
| Electrical | 1.04% | |
| Machinery | 0.49% | |
| Building | 0.32% | |
| Professional Services | 0.061% | |
| Industrials | -0.029% | |
| Aerospace & Defense | -0.30% | |
| Commercial Services | -0.37% | |
| Construction | -0.92% | |
Industry PE
- Investors are most optimistic about the Transportation industry, which is trading close to its 3-year average PE ratio of 172x.
- Analysts are expecting annual earnings growth of 14.9%, which is lower than the prior year's growth of 29.2% per year.
- Investors are most pessimistic about the Marine and Shipping industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 1.0x.
Forecasted Growth
- Analysts are most optimistic on the Airlines industry, expecting annual earnings growth of 31% over the next 5 years.
- This is better than its past earnings decline of 64% per year.
- In contrast, the Marine and Shipping industry is expected to see its earnings decline by 25% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| UBER Uber Technologies | US$33.90 | 9.6% +US$5.9b | -11.6% | PS2.3x | |
| GWW W.W. Grainger | US$674.28 | 14.4% +US$4.3b | 39.8% | PE22x | |
| FDX FedEx | US$210.59 | 8.6% +US$4.2b | -13.6% | PE16x | |
| ODFL Old Dominion Freight Line | US$369.57 | 10.9% +US$4.0b | 19.0% | PE29.6x | |
| UNP Union Pacific | US$208.96 | 2.3% +US$3.1b | -14.0% | PE19.2x |