U.S. IT Industry Analysis
UpdatedApr 26, 2024
DataAggregated Company Financials
Companies100
- 7D-1.6%
- 3M-13.5%
- 1Y21.2%
- YTD-6.8%
Over the last 7 days, the IT industry has dropped 1.6%, driven by a pullback from International Business Machines of 6.9%. Meanwhile, MongoDB actually outperformed within the industry, gaining 9.1% in the last week. In the past year, the industry has gained 21%. Earnings are forecast to grow by 17% annually.
Industry Valuation and Performance
Has the U.S. IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 26 Apr 2024 | US$710.4b | US$228.0b | US$14.4b | 22.8x | 49.4x | 3.1x |
| Sun, 24 Mar 2024 | US$776.8b | US$227.6b | US$14.6b | 22.3x | 53.3x | 3.4x |
| Tue, 20 Feb 2024 | US$831.3b | US$227.5b | US$14.2b | 23.4x | 58.5x | 3.7x |
| Thu, 18 Jan 2024 | US$791.2b | US$229.4b | US$12.9b | 21.1x | 61.1x | 3.4x |
| Sat, 16 Dec 2023 | US$786.3b | US$229.0b | US$12.8b | 20.3x | 61.4x | 3.4x |
| Mon, 13 Nov 2023 | US$691.3b | US$228.4b | US$12.6b | 20.5x | 54.7x | 3x |
| Wed, 11 Oct 2023 | US$674.9b | US$227.2b | US$6.5b | 22.7x | 104.3x | 3x |
| Fri, 08 Sep 2023 | US$706.7b | US$226.6b | US$6.8b | 23.2x | 103.9x | 3.1x |
| Sun, 06 Aug 2023 | US$680.8b | US$226.3b | US$6.4b | 24x | 106.1x | 3x |
| Tue, 04 Jul 2023 | US$682.3b | US$228.6b | US$6.1b | 23.7x | 112x | 3x |
| Thu, 01 Jun 2023 | US$655.9b | US$228.0b | US$5.8b | 22.7x | 114x | 2.9x |
| Sat, 29 Apr 2023 | US$581.8b | US$225.7b | US$2.7b | 21.7x | 212.8x | 2.6x |
| Mon, 27 Mar 2023 | US$572.2b | US$225.5b | US$2.3b | 22.6x | 245x | 2.5x |
| Wed, 22 Feb 2023 | US$2.0t | US$462.1b | US$22.5b | 27.2x | 87.3x | 4.2x |
| Fri, 20 Jan 2023 | US$2.0t | US$458.0b | US$39.2b | 28.1x | 50.1x | 4.3x |
| Sun, 18 Dec 2022 | US$1.9t | US$456.9b | US$39.0b | 27.6x | 48.1x | 4.1x |
| Tue, 15 Nov 2022 | US$1.9t | US$455.9b | US$37.9b | 28.2x | 51.3x | 4.3x |
| Thu, 13 Oct 2022 | US$1.7t | US$449.5b | US$41.7b | 26x | 41.6x | 3.9x |
| Sat, 10 Sep 2022 | US$2.0t | US$447.1b | US$41.4b | 28.5x | 49x | 4.5x |
| Mon, 08 Aug 2022 | US$2.1t | US$444.5b | US$42.2b | 30x | 50.6x | 4.8x |
| Wed, 06 Jul 2022 | US$1.9t | US$441.6b | US$46.9b | 28.9x | 41.2x | 4.4x |
| Fri, 03 Jun 2022 | US$2.1t | US$438.9b | US$47.3b | 28.4x | 43.5x | 4.7x |
| Sun, 01 May 2022 | US$2.1t | US$435.3b | US$49.8b | 29x | 43x | 4.9x |
| Tue, 29 Mar 2022 | US$2.4t | US$426.5b | US$46.2b | 32.5x | 51x | 5.5x |
| Thu, 24 Feb 2022 | US$2.3t | US$420.7b | US$47.6b | 28.1x | 47.8x | 5.4x |
| Sat, 22 Jan 2022 | US$2.4t | US$432.6b | US$48.4b | 32.1x | 49.7x | 5.6x |
| Mon, 20 Dec 2021 | US$2.7t | US$432.1b | US$48.1b | 36.8x | 55.7x | 6.2x |
| Wed, 17 Nov 2021 | US$2.9t | US$410.8b | US$50.9b | 36.5x | 57.3x | 7.1x |
| Fri, 15 Oct 2021 | US$2.9t | US$396.0b | US$46.8b | 34.5x | 62.2x | 7.3x |
| Sun, 12 Sep 2021 | US$2.9t | US$390.1b | US$46.3b | 31.2x | 62.5x | 7.4x |
| Tue, 10 Aug 2021 | US$2.9t | US$389.5b | US$46.2b | 33.1x | 62.9x | 7.5x |
| Mon, 03 May 2021 | US$2.7t | US$369.5b | US$42.4b | 32.9x | 64.6x | 7.4x |
Price to Earnings Ratio
64.6x
Current Industry PE
- Investors are pessimistic on the American IT 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 49.4x which is lower than its 3-year average PE of 70.6x.
- The 3-year average PS ratio of 4.7x is higher than the industry's current PS ratio of 3.1x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 30% per year over the last three years,
- Revenues have also declined 15% per year.
- This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the U.S. Tech industry?
| US Market | 0.97% | |
| Tech | 0.26% | |
| IT | -1.57% | |
| Internet Services and Infrastructure | 2.32% | |
| Data Processing Services | 0.89% | |
| IT Consulting | -3.52% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 34.7x.
- Analysts are expecting annual earnings growth of 9.8%, which is higher than its past year's earnings decline of 0.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 30% over the next 5 years.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 9.8% 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 | |
|---|---|---|---|---|---|
| MDB MongoDB | US$366.13 | 9.1% +US$2.2b | 52.0% | PS15.8x | |
| SHOP Shopify | US$70.55 | 1.5% +US$1.4b | 48.2% | PE688.5x | |
| SNOW Snowflake | US$152.50 | 2.8% +US$1.4b | 2.5% | PS18.1x | |
| GDDY GoDaddy | US$124.14 | 2.3% +US$397.5m | 61.2% | PE12.9x | |
| TWLO Twilio | US$60.01 | 2.7% +US$289.5m | 13.7% | PS2.6x |
