U.S. IT Industry Analysis
UpdatedJun 04, 2024
DataAggregated Company Financials
Companies109
- 7D-5.3%
- 3M-19.2%
- 1Y-0.2%
- YTD-14.3%
Over the last 7 days, the IT industry has dropped 5.0%, driven by a pullback from Accenture of 6.4%. As for the longer term, the industry's performance has been flat for the past year. As for the next few years, earnings are expected to grow by 16% per annum.
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, 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 |
| Sun, 26 Dec 2021 | US$2.8t | US$432.1b | US$48.3b | 37.8x | 57.4x | 6.4x |
| Tue, 23 Nov 2021 | US$2.7t | US$429.1b | US$48.5b | 35.2x | 55.6x | 6.3x |
| Thu, 21 Oct 2021 | US$3.0t | US$396.0b | US$46.8b | 34.6x | 63.8x | 7.5x |
| Sat, 18 Sep 2021 | US$2.9t | US$391.5b | US$46.8b | 34.4x | 61.7x | 7.4x |
| Mon, 16 Aug 2021 | US$2.9t | US$389.5b | US$46.2b | 34x | 62.6x | 7.4x |
Price to Earnings Ratio
60.6x
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 38.8x which is lower than its 3-year average PE of 70.0x.
- The 3-year average PS ratio of 4.4x is higher than the industry's current PS ratio of 2.8x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 28% per year over the last three years,
- Revenues have also declined 15% 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 | -0.61% | |
| Tech | -0.95% | |
| IT | -5.31% | |
| Data Processing Services | -1.09% | |
| IT Consulting | -4.57% | |
| Internet Services and Infrastructure | -6.73% | |
Industry PE
- Investors are most optimistic about the Data Processing Services industry even though it's trading below its 3-year average PE ratio of 37.6x.
- Analysts are expecting annual earnings growth of 13.4%, which is higher than its past year's earnings growth of 10.0% per year.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 28% 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 | |
|---|---|---|---|---|---|
| SHOP Shopify | US$59.70 | 4.8% +US$3.5b | -0.4% | PS10.4x | |
| VRSN VeriSign | US$174.93 | 2.2% +US$374.5m | -22.2% | PE20.9x | |
| BNAI Brand Engagement Network | US$4.69 | 304.3% +US$117.6m | -54.0% | PS1838.6x | |
| VNET VNET Group | US$2.12 | 18.4% +US$86.9m | -26.4% | PS0.5x | |
| GDS GDS Holdings | US$8.08 | 4.4% +US$66.1m | -25.5% | PS1.1x |
