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U.S. IT Industry Analysis
UpdatedJan 21, 2025
DataAggregated Company Financials
Companies109
- 7D2.8%
- 3M6.3%
- 1Y8.1%
- YTD1.6%
Over the last 7 days, the IT industry has risen 2.8%, driven by gains from International Business Machines of 3.4%. During this same period, the Orangekloud Technology underperformed, falling 66%. In the last 12 months, the industry was up 8.1%. 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 |
|---|---|---|---|---|---|---|
| Tue, 21 Jan 2025 | US$872.5b | US$234.1b | US$16.3b | 42.1x | 53.4x | 3.7x |
| Thu, 19 Dec 2024 | US$901.0b | US$233.2b | US$16.4b | 43.7x | 55x | 3.9x |
| Sat, 16 Nov 2024 | US$846.0b | US$232.7b | US$16.3b | 44.3x | 51.8x | 3.6x |
| Mon, 14 Oct 2024 | US$823.0b | US$232.9b | US$17.8b | 43.4x | 46.3x | 3.5x |
| Wed, 11 Sep 2024 | US$746.9b | US$233.2b | US$17.5b | 35.5x | 42.6x | 3.2x |
| Fri, 09 Aug 2024 | US$712.2b | US$232.9b | US$17.5b | 29x | 40.6x | 3.1x |
| Sun, 07 Jul 2024 | US$718.8b | US$236.9b | US$17.2b | 26.9x | 41.8x | 3x |
| Tue, 04 Jun 2024 | US$671.5b | US$237.1b | US$17.3b | 27.8x | 38.8x | 2.8x |
| Thu, 02 May 2024 | US$699.6b | US$228.0b | US$14.3b | 26.2x | 48.9x | 3.1x |
| Sat, 30 Mar 2024 | US$783.3b | US$227.8b | US$13.8b | 24.5x | 56.6x | 3.4x |
| Mon, 26 Feb 2024 | US$827.1b | US$227.5b | US$14.2b | 22x | 58.2x | 3.6x |
| Wed, 24 Jan 2024 | US$818.4b | US$229.4b | US$12.9b | 23.2x | 63.2x | 3.6x |
| Fri, 22 Dec 2023 | US$774.9b | US$229.5b | US$12.8b | 20.3x | 60.5x | 3.4x |
| Sun, 19 Nov 2023 | US$717.0b | US$228.4b | US$12.7b | 20.7x | 56.5x | 3.1x |
| Tue, 17 Oct 2023 | US$659.4b | US$227.2b | US$6.5b | 20.9x | 101.9x | 2.9x |
| Thu, 14 Sep 2023 | US$693.9b | US$226.6b | US$6.8b | 22.9x | 102.2x | 3.1x |
| Sat, 12 Aug 2023 | US$665.1b | US$226.3b | US$6.7b | 22.8x | 99.6x | 2.9x |
| Mon, 10 Jul 2023 | US$667.8b | US$228.6b | US$6.1b | 24.2x | 109.6x | 2.9x |
| Wed, 07 Jun 2023 | US$675.2b | US$228.2b | US$5.9b | 24.2x | 114x | 3x |
| Fri, 05 May 2023 | US$605.3b | US$233.0b | US$3.9b | 23x | 154.2x | 2.6x |
| Sun, 02 Apr 2023 | US$606.6b | US$225.6b | US$2.4b | 22.3x | 254x | 2.7x |
| Tue, 28 Feb 2023 | US$2.0t | US$462.7b | US$22.3b | 26.9x | 87.6x | 4.2x |
| Thu, 26 Jan 2023 | US$2.0t | US$458.3b | US$39.1b | 28.4x | 51.7x | 4.4x |
| Sat, 24 Dec 2022 | US$1.9t | US$457.9b | US$39.2b | 27.9x | 47.5x | 4.1x |
| Mon, 21 Nov 2022 | US$1.9t | US$456.7b | US$37.9b | 28.2x | 50.9x | 4.2x |
| Wed, 19 Oct 2022 | US$1.8t | US$449.5b | US$41.7b | 26.7x | 43.7x | 4x |
| Fri, 16 Sep 2022 | US$1.9t | US$447.0b | US$41.4b | 25.6x | 47x | 4.3x |
| Sun, 14 Aug 2022 | US$2.2t | US$445.4b | US$41.6b | 30.1x | 51.8x | 4.8x |
| Tue, 12 Jul 2022 | US$1.9t | US$441.6b | US$46.9b | 29.1x | 41.3x | 4.4x |
| Thu, 09 Jun 2022 | US$2.1t | US$438.7b | US$46.9b | 29.5x | 45x | 4.8x |
| Sat, 07 May 2022 | US$2.0t | US$431.3b | US$46.6b | 30.2x | 43.9x | 4.7x |
| Mon, 04 Apr 2022 | US$2.4t | US$431.0b | US$47.2b | 33.8x | 51.2x | 5.6x |
| Wed, 02 Mar 2022 | US$2.2t | US$417.9b | US$46.4b | 28.5x | 48.3x | 5.4x |
| Fri, 28 Jan 2022 | US$2.3t | US$416.0b | US$48.5b | 30.1x | 48.2x | 5.6x |
Price to Earnings Ratio
48.2x
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 53.4x which is lower than its 3-year average PE of 67.0x.
- The industry is trading close to its 3-year average PS ratio of 3.7x.
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 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 | 3.13% | |
| Tech | 2.91% | |
| IT | 2.76% | |
| Internet Services and Infrastructure | 3.48% | |
| Data Processing Services | 3.10% | |
| IT Consulting | 2.38% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry, which is trading close to its 3-year average PE ratio of 32.9x.
- Analysts are expecting annual earnings growth of 10.8%, which is higher than its past year's earnings decline of 4.0% per year.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 21% 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$224.79 | 3.2% +US$6.5b | 29.2% | PE32.6x | |
| SNOW Snowflake | US$170.79 | 4.5% +US$2.4b | -16.9% | PS16.5x | |
| ACN Accenture | US$352.59 | 1.0% +US$2.3b | -4.7% | PE29.1x | |
| SHOP Shopify | US$103.35 | 1.7% +US$2.2b | 27.4% | PE96.6x | |
| NET Cloudflare | US$117.16 | 4.6% +US$1.8b | 39.6% | PS25.6x |
