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U.S. Tech Sector Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies1231
  • 7D0.3%
  • 3M4.8%
  • 1Y31.9%
  • YTD26.2%

Over the last 7 days, the Tech industry has remained flat, although notably NVIDIA gained 4.4%. The past year has been better, since the industry has gained 32% in that time.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPE
Tue, 30 Nov 2021US$14.4tUS$2.1tUS$342.3b28x
Thu, 28 Oct 2021US$14.2tUS$2.1tUS$325.9b31.5x
Sat, 25 Sep 2021US$14.0tUS$2.0tUS$313.5b33.4x
Mon, 23 Aug 2021US$13.7tUS$2.0tUS$310.1b31.1x
Sat, 10 Jul 2021US$12.9tUS$2.0tUS$309.3b30.9x
Fri, 02 Apr 2021US$11.7tUS$1.9tUS$289.5b31.8x
Mon, 04 Jan 2021US$11.4tUS$1.8tUS$256.8b32.2x
Thu, 08 Oct 2020US$10.0tUS$1.7tUS$233.1b28.4x
Wed, 01 Jul 2020US$8.7tUS$1.6tUS$233.1b29.5x
Sat, 04 Apr 2020US$6.6tUS$1.6tUS$240.0b22.4x
Tue, 07 Jan 2020US$7.7tUS$1.6tUS$241.2b30x
Mon, 30 Sep 2019US$6.8tUS$1.6tUS$236.6b25.8x
Thu, 04 Jul 2019US$6.5tUS$1.6tUS$245.8b27.3x
Sun, 07 Apr 2019US$6.2tUS$1.6tUS$252.4b24.1x
Wed, 09 Jan 2019US$5.2tUS$1.7tUS$239.5b20.9x
PE Ratio

25.6x

Total Market Cap: US$5.6tTotal Earnings: US$208.9bTotal Revenue: US$1.6t0%0%0%3 Year10 Year
201920202021

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 28.8x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Information Technology industry have grown 18% per year over the last three years, and revenues for these companies have grown 9.4% 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?

Semiconductors2.60%
Communications0.93%
IT0.15%
Tech Hardware-0.30%
Software-0.43%
Electronic Equipment and Components-1.34%

Industry PE: Investors are most optimistic about the Software industry, which is trading close to its 3-year average PE ratio of 45.5x. However analysts expect its future annual earnings growth (19%) to be largely in line with prior year's earnings growth, so the market might believe analysts are underestimating its future growth since investors are willing to pay a bigger premium today. Meanwhile, investors are most pessimistic about the Tech Hardware industry, which is trading below its 3-year average of 17.4x.

Forecasted Growth: Analysts are most optimistic on the Software industry, expecting annual earnings growth of 19% over the next 5 years. This is roughly in line with its past earnings growth rate. Meanwhile, the Tech Hardware industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company7D1YValuation
NVDA NVIDIA4.4%+US$35.5b149.0%PE101.7x
AMD Advanced Micro Devices6.2%+US$11.3b74.7%PE49.3x
INTU Intuit5.0%+US$9.4b97.3%PE94x
ADBE Adobe2.1%+US$6.6b43.7%PE56x
CSCO Cisco Systems2.1%+US$4.9b29.6%PE20.6x
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