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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?

DateMarket CapRevenueEarningsPE
Sun, 28 Nov 2021US$2.7tUS$429.0bUS$48.1b34.7x
Tue, 26 Oct 2021US$3.0tUS$396.2bUS$46.2b34.9x
Thu, 23 Sep 2021US$2.9tUS$391.5bUS$46.8b34.7x
Sat, 21 Aug 2021US$2.9tUS$389.5bUS$46.2b33.5x
Sat, 05 Jun 2021US$2.7tUS$372.6bUS$42.8b34.4x
Tue, 09 Mar 2021US$2.6tUS$355.7bUS$37.5b32x
Mon, 30 Nov 2020US$2.4tUS$352.2bUS$36.3b35.8x
Thu, 03 Sep 2020US$2.2tUS$340.7bUS$36.6b34.9x
Sun, 07 Jun 2020US$1.9tUS$341.2bUS$39.0b28.6x
Sat, 29 Feb 2020US$1.7tUS$335.1bUS$44.4b31.5x
Tue, 03 Dec 2019US$1.8tUS$325.7bUS$42.5b30.8x
Fri, 06 Sep 2019US$1.7tUS$318.6bUS$45.0b34.5x
Mon, 10 Jun 2019US$1.5tUS$315.4bUS$44.0b33.8x
Sun, 03 Mar 2019US$1.4tUS$314.1bUS$43.4b29.9x
Wed, 05 Dec 2018US$1.3tUS$309.9bUS$39.9b27.9x
PE Ratio

27.9x

Total Market Cap: US$1.3tTotal Earnings: US$39.9bTotal Revenue: US$309.9b0%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 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?

Company7D1YValuation
TWLO Twilio1.8%+US$936.2m-9.0%PS20.3x
AFRM Affirm Holdings0.6%+US$230.4mn/aPS39.9x
AKAM Akamai Technologies0.9%+US$156.0m7.3%PE30.1x
CD Chindata Group Holdings3.7%+US$127.0m-49.2%PE129.1x
GDS GDS Holdings1.0%+US$99.1m-38.8%PS9.1x
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MA

US$324.17

Mastercard

7D

-4.6%

1Y

-4.4%

USIO

US$8.00

Usio

7D

9.1%

1Y

400.0%