Chindata Group Holdings Limited Surprised Analysts With A Profit, And Analysts Boosted Their EPS Forecasts
Investors in Chindata Group Holdings Limited ( NASDAQ:CD ) had a good week, as its shares rose 3.7% to close at US$9.72...
U.S. IT Industry Analysis
UpdatedNov 28, 2021
DataAggregated Company Financials
Companies236
- 7D-4.0%
- 3M-9.5%
- 1Y2.9%
- YTD0.04%
Over the last 7 days, the IT industry has dropped 4.0%, driven by declines in Mastercard and Shopify of 4.6% and 6.7%, respectively. As for the longer term, the industry's performance has been flat for the past year.
Industry Valuation and Performance
Has the U.S. IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 28 Nov 2021 | US$2.7t | US$429.0b | US$48.1b | 34.7x |
| Tue, 26 Oct 2021 | US$3.0t | US$396.2b | US$46.2b | 34.9x |
| Thu, 23 Sep 2021 | US$2.9t | US$391.5b | US$46.8b | 34.7x |
| Sat, 21 Aug 2021 | US$2.9t | US$389.5b | US$46.2b | 33.5x |
| Sat, 05 Jun 2021 | US$2.7t | US$372.6b | US$42.8b | 34.4x |
| Tue, 09 Mar 2021 | US$2.6t | US$355.7b | US$37.5b | 32x |
| Mon, 30 Nov 2020 | US$2.4t | US$352.2b | US$36.3b | 35.8x |
| Thu, 03 Sep 2020 | US$2.2t | US$340.7b | US$36.6b | 34.9x |
| Sun, 07 Jun 2020 | US$1.9t | US$341.2b | US$39.0b | 28.6x |
| Sat, 29 Feb 2020 | US$1.7t | US$335.1b | US$44.4b | 31.5x |
| Tue, 03 Dec 2019 | US$1.8t | US$325.7b | US$42.5b | 30.8x |
| Fri, 06 Sep 2019 | US$1.7t | US$318.6b | US$45.0b | 34.5x |
| Mon, 10 Jun 2019 | US$1.5t | US$315.4b | US$44.0b | 33.8x |
| Sun, 03 Mar 2019 | US$1.4t | US$314.1b | US$43.4b | 29.9x |
| Wed, 05 Dec 2018 | US$1.3t | US$309.9b | US$39.9b | 27.9x |
PE Ratio
27.9x
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 31.9x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the IT industry have grown 6.4% per year over the last three years, and revenues for these companies have grown 11% 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. IT industry?
| Data Processing Services | -3.20% | |
| IT Consulting | -4.23% | |
| Internet Services and Infrastructure | -6.05% | |
Industry PE: Investors are most optimistic about the Internet Services and Infrastructure industry, which is trading close to its 3-year average PE ratio of 61.4x. However analysts are expecting annual earnings growth of 3.0%, which is lower than the prior year's growth of 68% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the IT Consulting industry, which is trading close to its 3-year average of 24.4x.
Forecasted Growth: Analysts are most optimistic on the Data Processing Services industry, expecting annual earnings growth of 20% over the next 5 years. This is roughly in line with its past earnings growth rate. Meanwhile, the Internet Services and Infrastructure industry is expected to see its earnings grow by 3.0% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| TWLO Twilio | 1.8%+US$936.2m | -9.0% | PS20.3x | |
| AFRM Affirm Holdings | 0.6%+US$230.4m | n/a | PS39.9x | |
| AKAM Akamai Technologies | 0.9%+US$156.0m | 7.3% | PE30.1x | |
| CD Chindata Group Holdings | 3.7%+US$127.0m | -49.2% | PE129.1x | |
| GDS GDS Holdings | 1.0%+US$99.1m | -38.8% | PS9.1x |
