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U.S. IT Industry Analysis
UpdatedFeb 13, 2025
DataAggregated Company Financials
Companies107
- 7D-0.2%
- 3M17.6%
- 1Y18.8%
- YTD15.9%
Over the last 7 days, the IT industry has remained flat, although notably Cloudflare gained 20%. As for the the longer term, the industry is up 19% over the past 12 months. Looking forward, earnings are forecast to grow by 15% 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 |
|---|---|---|---|---|---|---|
| Thu, 13 Feb 2025 | US$997.8b | US$234.8b | US$16.9b | 50.7x | 59x | 4.2x |
| Sat, 11 Jan 2025 | US$873.6b | US$234.0b | US$16.5b | 38.9x | 53.1x | 3.7x |
| Mon, 09 Dec 2024 | US$922.3b | US$233.2b | US$16.4b | 48.2x | 56.3x | 4x |
| Wed, 06 Nov 2024 | US$772.0b | US$233.3b | US$16.2b | 44.5x | 47.8x | 3.3x |
| Fri, 04 Oct 2024 | US$787.5b | US$232.9b | US$17.8b | 42.2x | 44.4x | 3.4x |
| Sun, 01 Sep 2024 | US$761.2b | US$233.3b | US$17.5b | 38.4x | 43.4x | 3.3x |
| Tue, 30 Jul 2024 | US$743.4b | US$237.1b | US$17.4b | 29.2x | 42.8x | 3.1x |
| Thu, 27 Jun 2024 | US$703.0b | US$237.1b | US$17.2b | 27x | 40.9x | 3x |
| Sat, 25 May 2024 | US$712.0b | US$237.0b | US$17.2b | 28.1x | 41.3x | 3x |
| Mon, 22 Apr 2024 | US$719.3b | US$227.7b | US$13.7b | 24x | 52.3x | 3.2x |
| Wed, 20 Mar 2024 | US$804.6b | US$227.7b | US$14.4b | 22.4x | 56x | 3.5x |
| Fri, 16 Feb 2024 | US$834.9b | US$227.3b | US$14.4b | 23.5x | 57.8x | 3.7x |
| Sun, 14 Jan 2024 | US$799.2b | US$229.4b | US$12.9b | 20.7x | 61.8x | 3.5x |
| Tue, 12 Dec 2023 | US$768.5b | US$229.0b | US$12.8b | 21.4x | 60x | 3.4x |
| Thu, 09 Nov 2023 | US$688.5b | US$228.2b | US$12.3b | 21.1x | 56x | 3x |
| Sat, 07 Oct 2023 | US$668.4b | US$227.2b | US$6.5b | 22.3x | 103.3x | 2.9x |
| Mon, 04 Sep 2023 | US$710.1b | US$226.6b | US$6.8b | 21.9x | 104.4x | 3.1x |
| Wed, 02 Aug 2023 | US$705.3b | US$228.7b | US$6.2b | 23.3x | 113.8x | 3.1x |
| Fri, 30 Jun 2023 | US$675.8b | US$228.6b | US$6.1b | 23.5x | 110x | 3x |
| Sun, 28 May 2023 | US$646.8b | US$229.3b | US$5.1b | 23.4x | 127.6x | 2.8x |
| Tue, 25 Apr 2023 | US$581.5b | US$225.6b | US$2.7b | 21.8x | 212.9x | 2.6x |
| Thu, 23 Mar 2023 | US$555.6b | US$225.0b | US$2.4b | 22.2x | 227.4x | 2.5x |
| Sat, 18 Feb 2023 | US$2.0t | US$461.4b | US$22.7b | 28.4x | 88.4x | 4.3x |
| Mon, 16 Jan 2023 | US$2.0t | US$458.1b | US$39.1b | 29.2x | 51.2x | 4.4x |
| Wed, 14 Dec 2022 | US$2.0t | US$456.9b | US$39.0b | 28.1x | 50.6x | 4.3x |
| Fri, 11 Nov 2022 | US$1.9t | US$455.3b | US$37.6b | 28.6x | 50.1x | 4.1x |
| Sun, 09 Oct 2022 | US$1.8t | US$449.6b | US$41.7b | 26.3x | 43.3x | 4x |
| Tue, 06 Sep 2022 | US$1.9t | US$446.7b | US$41.5b | 28.5x | 46.7x | 4.3x |
| Thu, 04 Aug 2022 | US$2.1t | US$443.1b | US$44.7b | 30.2x | 47.4x | 4.8x |
| Sat, 02 Jul 2022 | US$1.9t | US$442.4b | US$47.2b | 27.5x | 40.5x | 4.3x |
| Mon, 30 May 2022 | US$2.1t | US$438.5b | US$47.3b | 27.6x | 44.3x | 4.8x |
| Wed, 27 Apr 2022 | US$2.1t | US$431.8b | US$47.6b | 29.1x | 44.5x | 4.9x |
| Fri, 25 Mar 2022 | US$2.3t | US$429.6b | US$47.1b | 30.7x | 49.7x | 5.5x |
| Sun, 20 Feb 2022 | US$2.3t | US$422.8b | US$47.7b | 29.8x | 48.3x | 5.4x |
Price to Earnings Ratio
48.3x
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 59.0x 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 4.2x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 29% per year over the last three years,
- Revenues have also declined 18% 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 | -0.48% | |
| Tech | 0.74% | |
| IT | -0.22% | |
| Internet Services and Infrastructure | 3.05% | |
| Data Processing Services | 2.35% | |
| IT Consulting | -2.09% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry, which is trading close to its 3-year average PE ratio of 32.7x.
- Analysts are expecting annual earnings growth of 11.1%, which is higher than its past year's earnings decline of 5.4% 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.
- 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 | |
|---|---|---|---|---|---|
| NET Cloudflare | US$172.83 | 19.8% +US$10.1b | 65.6% | PS35.7x | |
| CTSH Cognizant Technology Solutions | US$88.08 | 5.4% +US$2.2b | 14.8% | PE19.5x | |
| GDS GDS Holdings | US$34.43 | 32.7% +US$1.6b | 466.3% | PS4.5x | |
| MDB MongoDB | US$292.46 | 3.7% +US$776.7m | -39.9% | PS11.4x | |
| VNET VNET Group | US$11.31 | 32.9% +US$747.5m | 629.7% | PS2.8x |
