Investors Should Be Encouraged By Gartner's (NYSE:IT) Returns On Capital
Apr 20
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U.S. IT Industry Analysis
UpdatedApr 21, 2025
DataAggregated Company Financials
Companies105
- 7D-0.4%
- 3M-13.0%
- 1Y5.9%
- YTD-11.4%
The IT industry has been flat over the last week, but CoreWeave has lost 11%. The past year has been better, since the industry has gained 5.9% in that time. Looking forward, earnings are forecast to grow by 12% 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 |
|---|---|---|---|---|---|---|
| Mon, 21 Apr 2025 | US$804.6b | US$242.4b | US$18.5b | 33.9x | 43.5x | 3.3x |
| Wed, 19 Mar 2025 | US$885.5b | US$240.0b | US$18.7b | 43.2x | 47.4x | 3.7x |
| Fri, 14 Feb 2025 | US$997.2b | US$234.9b | US$16.9b | 52x | 59x | 4.2x |
| Sun, 12 Jan 2025 | US$855.5b | US$234.0b | US$16.5b | 38.9x | 52x | 3.7x |
| Tue, 10 Dec 2024 | US$922.3b | US$233.2b | US$16.4b | 47x | 56.3x | 4x |
| Thu, 07 Nov 2024 | US$780.2b | US$233.2b | US$16.1b | 45.5x | 48.3x | 3.3x |
| Sat, 05 Oct 2024 | US$791.5b | US$232.9b | US$17.8b | 43.3x | 44.6x | 3.4x |
| Mon, 02 Sep 2024 | US$761.2b | US$233.3b | US$17.5b | 38.4x | 43.4x | 3.3x |
| Wed, 31 Jul 2024 | US$741.6b | US$237.1b | US$17.4b | 29.2x | 42.7x | 3.1x |
| Fri, 28 Jun 2024 | US$702.9b | US$237.1b | US$17.2b | 27.9x | 40.9x | 3x |
| Sun, 26 May 2024 | US$707.2b | US$237.0b | US$17.2b | 28.2x | 41x | 3x |
| Tue, 23 Apr 2024 | US$719.3b | US$227.7b | US$13.7b | 24x | 52.3x | 3.2x |
| Thu, 21 Mar 2024 | US$804.9b | US$227.7b | US$14.4b | 22.7x | 56x | 3.5x |
| Sat, 17 Feb 2024 | US$839.7b | US$227.5b | US$14.2b | 23.4x | 59.1x | 3.7x |
| Mon, 15 Jan 2024 | US$799.2b | US$229.4b | US$12.9b | 20.7x | 61.8x | 3.5x |
| Wed, 13 Dec 2023 | US$770.8b | US$229.0b | US$12.8b | 20.6x | 60.2x | 3.4x |
| Fri, 10 Nov 2023 | US$690.1b | US$228.4b | US$12.6b | 20.6x | 54.6x | 3x |
| Sun, 08 Oct 2023 | US$668.4b | US$227.2b | US$6.5b | 22.3x | 103.3x | 2.9x |
| Tue, 05 Sep 2023 | US$710.1b | US$226.6b | US$6.8b | 21.9x | 104.4x | 3.1x |
| Thu, 03 Aug 2023 | US$686.5b | US$226.7b | US$6.4b | 23.6x | 106.9x | 3x |
| Sat, 01 Jul 2023 | US$679.5b | US$228.6b | US$6.1b | 23.6x | 111.5x | 3x |
| Mon, 29 May 2023 | US$646.8b | US$229.3b | US$5.1b | 23.4x | 127.6x | 2.8x |
| Wed, 26 Apr 2023 | US$567.5b | US$225.6b | US$2.7b | 21.2x | 207.7x | 2.5x |
| Fri, 24 Mar 2023 | US$572.4b | US$225.0b | US$2.4b | 22.4x | 234.8x | 2.5x |
| Sun, 19 Feb 2023 | US$2.0t | US$461.4b | US$22.7b | 28.4x | 88.4x | 4.3x |
| Tue, 17 Jan 2023 | US$2.0t | US$458.1b | US$39.1b | 29.2x | 51.2x | 4.4x |
| Thu, 15 Dec 2022 | US$2.0t | US$457.0b | US$39.0b | 28.2x | 50.4x | 4.3x |
| Sat, 12 Nov 2022 | US$1.9t | US$455.9b | US$37.9b | 28.6x | 51.4x | 4.3x |
| Mon, 10 Oct 2022 | US$1.8t | US$449.6b | US$41.7b | 26.3x | 43.3x | 4x |
| Wed, 07 Sep 2022 | US$1.9t | US$446.7b | US$41.5b | 27.9x | 46.8x | 4.3x |
| Fri, 05 Aug 2022 | US$2.1t | US$443.4b | US$42.9b | 29.9x | 48.7x | 4.7x |
| Sun, 03 Jul 2022 | US$1.9t | US$442.4b | US$47.2b | 28.3x | 40.5x | 4.3x |
| Tue, 31 May 2022 | US$2.1t | US$438.6b | US$47.3b | 27.6x | 44.3x | 4.8x |
| Thu, 28 Apr 2022 | US$2.2t | US$433.7b | US$48.6b | 29.4x | 44.5x | 5x |
Price to Earnings Ratio
44.5x
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 43.5x which is lower than its 3-year average PE of 67.2x.
- The industry is trading close to its 3-year average PS ratio of 3.6x.
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 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 | -1.12% | |
| Tech | -3.38% | |
| IT | -0.42% | |
| Data Processing Services | 0.62% | |
| IT Consulting | 0.23% | |
| Internet Services and Infrastructure | -1.50% | |
Industry PE
- Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 16.7%, which is higher than its past year's earnings growth of 14.7% per year.
- Investors are most pessimistic about the Data Processing Services industry, which is trading below its 3-year average of 30.7x.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 17% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 10% 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$83.65 | 1.1% +US$1.1b | 18.6% | PE53.6x | |
| NET Cloudflare | US$107.90 | 0.7% +US$269.0m | 27.4% | PS22.3x | |
| GDS GDS Holdings | US$21.47 | 5.2% +US$208.0m | 225.8% | PS2.9x | |
| MDB MongoDB | US$159.26 | 0.8% +US$99.0m | -53.2% | PS6.4x | |
| WIX Wix.com | US$159.76 | 0.6% +US$57.0m | 31.4% | PE64.6x |
