U.S. Tech Sector Analysis
UpdatedDec 01, 2023
DataAggregated Company Financials
Companies1157
- 7D0.2%
- 3M4.0%
- 1Y37.4%
- YTD51.9%
Last week, the Tech industry hasn't moved much but Salesforce is up 13% in that time. As for the the longer term, the industry is up 37% over the past 12 months. Looking forward, earnings are forecast to grow by 17% annually.
Sector Valuation and Performance
Has the U.S. Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 01 Dec 2023 | US$12.8t | US$2.1t | US$292.6b | 24.9x | 43.7x | 6.2x |
| Sun, 29 Oct 2023 | US$11.2t | US$2.0t | US$278.4b | 22.2x | 40.1x | 5.5x |
| Tue, 26 Sep 2023 | US$11.5t | US$2.0t | US$273.1b | 24.7x | 42.1x | 5.6x |
| Thu, 24 Aug 2023 | US$11.9t | US$2.0t | US$264.9b | 24.3x | 44.9x | 5.9x |
| Sat, 22 Jul 2023 | US$12.2t | US$2.0t | US$258.1b | 25.5x | 47.3x | 6x |
| Mon, 19 Jun 2023 | US$11.9t | US$2.0t | US$264.4b | 24.9x | 45.2x | 5.9x |
| Wed, 17 May 2023 | US$10.5t | US$2.0t | US$262.0b | 22.9x | 39.9x | 5.2x |
| Fri, 14 Apr 2023 | US$10.3t | US$2.0t | US$274.9b | 22.9x | 37.3x | 5x |
| Sun, 12 Mar 2023 | US$10.6t | US$2.3t | US$298.6b | 21.8x | 35.7x | 4.7x |
| Tue, 07 Feb 2023 | US$11.0t | US$2.2t | US$314.5b | 24.8x | 35x | 4.9x |
| Thu, 05 Jan 2023 | US$9.7t | US$2.2t | US$327.4b | 21.4x | 29.6x | 4.3x |
| Sat, 03 Dec 2022 | US$10.6t | US$2.2t | US$329.3b | 23.3x | 32.1x | 4.7x |
| Mon, 31 Oct 2022 | US$10.2t | US$2.2t | US$331.4b | 20.6x | 30.8x | 4.6x |
| Wed, 28 Sep 2022 | US$9.8t | US$2.2t | US$347.2b | 19.1x | 28.3x | 4.5x |
| Fri, 26 Aug 2022 | US$11.5t | US$2.2t | US$346.4b | 23.4x | 33.2x | 5.3x |
| Sun, 24 Jul 2022 | US$11.0t | US$2.2t | US$360.2b | 23.1x | 30.5x | 5.1x |
| Tue, 21 Jun 2022 | US$9.9t | US$2.1t | US$358.6b | 22.7x | 27.7x | 4.6x |
| Thu, 19 May 2022 | US$11.0t | US$2.1t | US$357.0b | 23.9x | 30.8x | 5.2x |
| Sat, 16 Apr 2022 | US$12.1t | US$2.1t | US$345.8b | 24x | 34.9x | 5.9x |
| Mon, 14 Mar 2022 | US$11.8t | US$2.0t | US$345.0b | 25.1x | 34.1x | 5.8x |
| Wed, 09 Feb 2022 | US$13.5t | US$2.2t | US$354.1b | 26.5x | 38x | 6.2x |
| Fri, 07 Jan 2022 | US$14.1t | US$2.1t | US$346.7b | 28.7x | 40.7x | 6.6x |
| Sun, 05 Dec 2021 | US$14.0t | US$2.1t | US$345.9b | 28.1x | 40.6x | 6.6x |
| Tue, 02 Nov 2021 | US$14.3t | US$2.1t | US$339.4b | 31.3x | 42.2x | 6.9x |
| Thu, 30 Sep 2021 | US$13.3t | US$2.0t | US$315.2b | 32.8x | 42.3x | 6.6x |
| Sat, 28 Aug 2021 | US$13.8t | US$2.0t | US$310.0b | 31.5x | 44.7x | 6.9x |
| Sun, 04 Jul 2021 | US$12.9t | US$2.0t | US$309.3b | 30.9x | 41.7x | 6.5x |
| Wed, 07 Apr 2021 | US$11.7t | US$1.9t | US$289.5b | 31.8x | 40.3x | 6.1x |
| Sat, 09 Jan 2021 | US$11.4t | US$1.8t | US$256.8b | 32.2x | 44.5x | 6.2x |
Price to Earnings Ratio
44.9x
Current Industry PE
- Investors are optimistic on the American Information Technology industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 43.7x which is higher than its 3-year average PE of 38.6x.
- The industry is trading close to its 3-year average PS ratio of 5.7x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have grown 6.7% per year over the last three years.
- Revenues for these companies have grown 4.6% 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. Tech sector?
| US Market | 0.50% | |
| Tech | 0.24% | |
| IT | 1.81% | |
| Software | 1.69% | |
| Communications | 0.45% | |
| Tech Hardware | 0.071% | |
| Electronic Equipment and Components | -0.22% | |
| Semiconductors | -2.11% | |
Industry PE
- Investors are most optimistic about the Software industry, which is trading close to its 3-year average PE ratio of 61.1x.
- Analysts are expecting annual earnings growth of 17.5%, which is higher than its past year's earnings growth of 11.9% per year.
- Investors are most pessimistic about the Communications industry, which is trading below its 3-year average of 23.8x.
Forecasted Growth
- Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 27% over the next 5 years.
- This is better than its past earnings growth rate of 0.8% per year.
- In contrast, the Tech Hardware industry is expected to see its earnings grow by 6.7% 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 | |
|---|---|---|---|---|---|
| CRM Salesforce | US$251.90 | 12.5% +US$27.3b | 71.4% | PE94.6x | |
| MSFT Microsoft | US$378.91 | 0.4% +US$11.0b | 48.6% | PE36.5x | |
| PANW Palo Alto Networks | US$295.09 | 12.1% +US$10.1b | 65.4% | PE151.6x | |
| WDAY Workday | US$270.72 | 15.6% +US$9.8b | 59.7% | PE1065.7x | |
| CRWD CrowdStrike Holdings | US$236.99 | 13.1% +US$6.9b | 91.0% | PS20x |
