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U.S. IT Industry Analysis

UpdatedNov 28, 2022
DataAggregated Company Financials
Companies219
  • 7D1.3%
  • 3M-2.2%
  • 1Y-27.1%
  • YTD-29.3%

Over the last 7 days, the IT industry has risen 1.3%, and Mastercard contributed the most with a gain of 2.2%. In the same time, PayPal Holdings was down 5.7%. In contrast, the industry has lost 27% in the last 12 months. As for the next few years, earnings are expected to grow by 21% per annum.

Industry Valuation and Performance

Has the U.S. IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 28 Nov 2022US$2.0tUS$456.3bUS$39.0b28.6x50x4.3x
Wed, 26 Oct 2022US$1.9tUS$450.4bUS$37.4b28.4x50.5x4.2x
Fri, 23 Sep 2022US$1.8tUS$447.0bUS$41.4b26.1x44.1x4.1x
Sun, 21 Aug 2022US$2.1tUS$445.9bUS$41.6b29.8x50.8x4.7x
Tue, 19 Jul 2022US$1.9tUS$441.6bUS$46.9b28.6x41.5x4.4x
Thu, 16 Jun 2022US$1.9tUS$439.3bUS$46.9b27.1x40.6x4.3x
Sat, 14 May 2022US$2.0tUS$438.7bUS$46.3b26.3x43.1x4.6x
Mon, 11 Apr 2022US$2.3tUS$431.0bUS$47.2b33.6x49.1x5.4x
Wed, 09 Mar 2022US$2.1tUS$424.6bUS$47.1b27.1x43.7x4.9x
Fri, 04 Feb 2022US$2.5tUS$418.6bUS$48.9b30.8x50.1x5.9x
Sun, 02 Jan 2022US$2.8tUS$432.3bUS$48.3b38.1x57.1x6.4x
Tue, 30 Nov 2021US$2.7tUS$429.0bUS$48.1b34.7x56.1x6.3x
Thu, 28 Oct 2021US$2.9tUS$397.7bUS$47.9b35.3x59.7x7.2x
Sat, 25 Sep 2021US$3.0tUS$395.6bUS$46.6b34.9x63.5x7.5x
Mon, 23 Aug 2021US$2.9tUS$389.5bUS$46.2b33.3x62.6x7.4x
Sat, 10 Jul 2021US$2.8tUS$387.8bUS$47.0b34.3x60.6x7.3x
Fri, 02 Apr 2021US$2.6tUS$369.3bUS$42.5b32.6x60.2x6.9x
Mon, 04 Jan 2021US$2.5tUS$352.3bUS$37.4b31.7x67.3x7.1x
Thu, 08 Oct 2020US$2.2tUS$346.8bUS$36.1b30.6x61x6.4x
Wed, 01 Jul 2020US$1.9tUS$337.7bUS$36.7b31.9x52.8x5.7x
Sat, 04 Apr 2020US$1.5tUS$340.7bUS$39.3b23.3x37.6x4.3x
Tue, 07 Jan 2020US$1.8tUS$334.7bUS$44.1b34x40.7x5.4x
Price to Earnings Ratio

41.8x


Total Market Cap: US$1.8tTotal Earnings: US$42.5bTotal Revenue: US$325.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 53.1x202020212022
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 50.0x which is lower than its 3-year average PE of 53.1x.
  • The 3-year average PS ratio of 5.9x is higher than the industry's current PS ratio of 4.3x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 2.8% per year over the last three years.
  • Meanwhile revenues for these companies have grown 12% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the U.S. Tech industry?

US Market1.26%
Tech0.86%
IT1.27%
IT Consulting2.10%
Data Processing Services1.33%
Internet Services and Infrastructure-1.12%
Industry PE
  • Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 32.8x.
    • Analysts are expecting annual earnings growth of 31.3%, which is higher than its past year's earnings growth of 24.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 31% over the next 5 years.
  • This is better than its past earnings growth rate of 25% per year.
  • In contrast, the Data Processing Services industry is expected to see its earnings grow by 16% per year over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
MA MastercardUS$351.292.2%
+US$7.3b
8.4%PE34.5x
ACN AccentureUS$296.403.5%
+US$6.2b
-16.2%PE27.2x
V VisaUS$213.791.4%
+US$6.2b
8.2%PE30.1x
ADP Automatic Data ProcessingUS$263.953.1%
+US$3.3b
15.0%PE36.2x
FIS Fidelity National Information ServicesUS$65.987.4%
+US$2.7b
-38.9%PE41.8x
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