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U.S. IT Industry Analysis
UpdatedFeb 21, 2025
DataAggregated Company Financials
Companies109
- 7D-2.7%
- 3M12.6%
- 1Y21.2%
- YTD14.7%
The IT industry is up 1.2% in the last week, with International Business Machines up 3.3%. Meanwhile, Cloudflare actually underperformed within the industry, shrinking 11% in the last week. In the last 12 months, the industry was up 25%. Earnings are forecast to grow by 14% 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, 21 Feb 2025 | US$1.0t | US$239.6b | US$18.2b | 45.7x | 56.9x | 4.3x |
| Sun, 19 Jan 2025 | US$872.5b | US$234.1b | US$16.3b | 42.1x | 53.4x | 3.7x |
| Tue, 17 Dec 2024 | US$894.9b | US$233.2b | US$16.4b | 44.7x | 54.6x | 3.8x |
| Thu, 14 Nov 2024 | US$848.9b | US$232.6b | US$16.3b | 46.1x | 51.9x | 3.6x |
| Sat, 12 Oct 2024 | US$820.4b | US$232.9b | US$17.8b | 43.4x | 46.2x | 3.5x |
| Mon, 09 Sep 2024 | US$739.3b | US$233.3b | US$17.5b | 35.4x | 42.1x | 3.2x |
| Wed, 07 Aug 2024 | US$679.2b | US$232.5b | US$16.1b | 28.6x | 42.1x | 2.9x |
| Fri, 05 Jul 2024 | US$720.0b | US$237.0b | US$17.2b | 28.3x | 41.9x | 3x |
| Sun, 02 Jun 2024 | US$671.5b | US$237.1b | US$17.3b | 28.3x | 38.8x | 2.8x |
| Tue, 30 Apr 2024 | US$712.8b | US$228.0b | US$14.4b | 25x | 49.6x | 3.1x |
| Thu, 28 Mar 2024 | US$781.0b | US$227.7b | US$14.2b | 22.3x | 55.2x | 3.4x |
| Sat, 24 Feb 2024 | US$827.0b | US$227.5b | US$14.2b | 22x | 58.2x | 3.6x |
| Mon, 22 Jan 2024 | US$808.6b | US$229.4b | US$12.9b | 22x | 62.5x | 3.5x |
| Wed, 20 Dec 2023 | US$787.8b | US$229.5b | US$12.8b | 20.3x | 61.5x | 3.4x |
| Fri, 17 Nov 2023 | US$716.5b | US$228.4b | US$12.7b | 21.1x | 56.4x | 3.1x |
| Sun, 15 Oct 2023 | US$651.0b | US$227.2b | US$6.5b | 20.7x | 100.6x | 2.9x |
| Tue, 12 Sep 2023 | US$711.0b | US$226.6b | US$6.8b | 23.5x | 104.5x | 3.1x |
| Thu, 10 Aug 2023 | US$665.3b | US$226.0b | US$6.7b | 22.8x | 99.3x | 2.9x |
| Sat, 08 Jul 2023 | US$667.8b | US$228.6b | US$6.1b | 24.2x | 109.6x | 2.9x |
| Mon, 05 Jun 2023 | US$673.6b | US$228.3b | US$5.9b | 24x | 113.8x | 3x |
| Wed, 03 May 2023 | US$570.0b | US$225.4b | US$3.2b | 21.8x | 178.7x | 2.5x |
| Fri, 31 Mar 2023 | US$592.0b | US$225.6b | US$2.3b | 21.9x | 252.5x | 2.6x |
| Sun, 26 Feb 2023 | US$1.9t | US$462.6b | US$22.4b | 26.6x | 86.8x | 4.2x |
| Tue, 24 Jan 2023 | US$2.0t | US$458.2b | US$39.1b | 28.7x | 52x | 4.4x |
| Thu, 22 Dec 2022 | US$1.9t | US$457.8b | US$39.2b | 28x | 48.1x | 4.1x |
| Sat, 19 Nov 2022 | US$1.9t | US$456.6b | US$38.0b | 28.2x | 50.7x | 4.2x |
| Mon, 17 Oct 2022 | US$1.7t | US$449.5b | US$41.7b | 26.3x | 41.7x | 3.9x |
| Wed, 14 Sep 2022 | US$2.1t | US$447.2b | US$41.4b | 28.2x | 49.6x | 4.6x |
| Fri, 12 Aug 2022 | US$2.1t | US$444.4b | US$42.3b | 30.2x | 50.3x | 4.8x |
| Sun, 10 Jul 2022 | US$2.0t | US$441.7b | US$46.9b | 29.4x | 41.7x | 4.4x |
| Tue, 07 Jun 2022 | US$2.1t | US$438.8b | US$46.9b | 27.8x | 44.6x | 4.8x |
| Thu, 05 May 2022 | US$2.1t | US$430.4b | US$49.3b | 30x | 43.3x | 5x |
| Sat, 02 Apr 2022 | US$2.4t | US$430.5b | US$47.3b | 33.8x | 51.1x | 5.6x |
| Mon, 28 Feb 2022 | US$2.3t | US$422.0b | US$47.3b | 29.7x | 49.2x | 5.5x |
Price to Earnings Ratio
49.2x
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 57.0x which is lower than its 3-year average PE of 67.2x.
- The 3-year average PS ratio of 3.7x is lower than the industry's current PS ratio of 4.3x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 27% per year over the last three years,
- Revenues have also declined 17% 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 | -0.41% | |
| Tech | 0.23% | |
| IT | -2.68% | |
| IT Consulting | -0.86% | |
| Data Processing Services | -1.74% | |
| Internet Services and Infrastructure | -5.40% | |
Industry PE
- Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 18.3%, which is higher than its past year's earnings growth of 2.1% per year.
- Investors are most pessimistic about the Data Processing Services industry, which is trading below its 3-year average of 31.5x.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 18% over the next 5 years.
- This is better than its past earnings growth rate of 2.1% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 11% 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 | |
|---|---|---|---|---|---|
| IBM International Business Machines | US$264.74 | 2.1% +US$5.1b | 43.7% | PE40.7x | |
| GDS GDS Holdings | US$48.50 | 34.6% +US$2.4b | 578.3% | PS6.2x | |
| VNET VNET Group | US$14.68 | 24.9% +US$782.2m | 847.1% | PS3.6x | |
| KC Kingsoft Cloud Holdings | US$20.17 | 16.3% +US$649.7m | 583.7% | PS4.6x | |
| APLD Applied Digital | US$10.18 | 28.7% +US$506.0m | 135.1% | PS10.7x |
