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U.S. IT Industry Analysis
UpdatedMay 18, 2025
DataAggregated Company Financials
Companies104
- 7D9.2%
- 3M-10.6%
- 1Y29.7%
- YTD7.4%
In the last week, the IT industry is up 8.9%, with Shopify up 21%. Meanwhile, Globant actually underperformed within the industry, shrinking 21% in the last week. In the last 12 months, the industry was up 29%. As for the next few years, earnings are expected to grow by 17% 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 |
|---|---|---|---|---|---|---|
| Sun, 18 May 2025 | US$943.4b | US$239.9b | US$16.9b | 29.7x | 55.8x | 3.9x |
| Tue, 15 Apr 2025 | US$808.0b | US$242.3b | US$18.5b | 33.3x | 43.7x | 3.3x |
| Thu, 13 Mar 2025 | US$875.7b | US$240.0b | US$18.7b | 47.3x | 46.9x | 3.6x |
| Sat, 08 Feb 2025 | US$978.3b | US$234.2b | US$16.3b | 48.1x | 60.1x | 4.2x |
| Mon, 06 Jan 2025 | US$871.5b | US$234.0b | US$16.5b | 49.1x | 53x | 3.7x |
| Wed, 04 Dec 2024 | US$893.3b | US$233.1b | US$16.3b | 46.1x | 54.9x | 3.8x |
| Fri, 01 Nov 2024 | US$772.1b | US$233.2b | US$15.9b | 44.3x | 48.5x | 3.3x |
| Sun, 29 Sep 2024 | US$796.7b | US$233.8b | US$17.8b | 40.3x | 44.7x | 3.4x |
| Tue, 27 Aug 2024 | US$751.9b | US$233.1b | US$17.4b | 34.4x | 43.1x | 3.2x |
| Thu, 25 Jul 2024 | US$743.4b | US$236.9b | US$17.2b | 29.6x | 43.3x | 3.1x |
| Sat, 22 Jun 2024 | US$699.9b | US$237.1b | US$17.2b | 27.8x | 40.7x | 3x |
| Mon, 20 May 2024 | US$716.6b | US$236.8b | US$17.3b | 25.3x | 41.5x | 3x |
| Wed, 17 Apr 2024 | US$725.5b | US$227.7b | US$13.7b | 24.6x | 52.8x | 3.2x |
| Fri, 15 Mar 2024 | US$816.1b | US$227.7b | US$14.4b | 22.7x | 56.8x | 3.6x |
| Sun, 11 Feb 2024 | US$856.9b | US$226.8b | US$13.1b | 22.7x | 65.4x | 3.8x |
| Tue, 09 Jan 2024 | US$758.6b | US$229.5b | US$12.8b | 20x | 59.1x | 3.3x |
| Thu, 07 Dec 2023 | US$751.2b | US$229.0b | US$12.8b | 21.1x | 58.7x | 3.3x |
| Sat, 04 Nov 2023 | US$679.2b | US$228.3b | US$12.1b | 19.8x | 55.9x | 3x |
| Mon, 02 Oct 2023 | US$662.3b | US$227.2b | US$6.5b | 24.3x | 102.4x | 2.9x |
| Wed, 30 Aug 2023 | US$686.8b | US$226.3b | US$6.6b | 21.6x | 103.7x | 3x |
| Fri, 28 Jul 2023 | US$694.4b | US$228.6b | US$6.2b | 25.5x | 112x | 3x |
| Sun, 25 Jun 2023 | US$661.8b | US$228.6b | US$6.1b | 23.4x | 107.8x | 2.9x |
| Tue, 23 May 2023 | US$647.5b | US$229.1b | US$5.1b | 22.8x | 126.5x | 2.8x |
| Thu, 20 Apr 2023 | US$591.2b | US$225.6b | US$2.5b | 23.6x | 241x | 2.6x |
| Sat, 18 Mar 2023 | US$1.9t | US$463.9b | US$22.4b | 24x | 83.9x | 4x |
| Mon, 13 Feb 2023 | US$2.0t | US$460.3b | US$40.8b | 26.8x | 49.8x | 4.4x |
| Wed, 11 Jan 2023 | US$2.0t | US$458.1b | US$39.2b | 28.8x | 50.2x | 4.3x |
| Fri, 09 Dec 2022 | US$1.9t | US$457.0b | US$39.0b | 28x | 49.6x | 4.2x |
| Sun, 06 Nov 2022 | US$1.8t | US$454.5b | US$37.8b | 25.4x | 46.8x | 3.9x |
| Tue, 04 Oct 2022 | US$1.8t | US$449.6b | US$41.7b | 26x | 43.2x | 4x |
| Thu, 01 Sep 2022 | US$2.0t | US$446.5b | US$41.5b | 28.8x | 47.7x | 4.4x |
| Sat, 30 Jul 2022 | US$2.1t | US$446.8b | US$47.1b | 29.7x | 43.8x | 4.6x |
| Mon, 27 Jun 2022 | US$2.0t | US$442.1b | US$47.1b | 28.2x | 42.5x | 4.5x |
| Wed, 25 May 2022 | US$2.0t | US$438.6b | US$45.9b | 27.7x | 42.7x | 4.5x |
Price to Earnings Ratio
42.7x
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 55.4x which is lower than its 3-year average PE of 67.3x.
- 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 | 5.34% | |
| Tech | 8.21% | |
| IT | 9.25% | |
| Internet Services and Infrastructure | 17.04% | |
| IT Consulting | 4.55% | |
| Data Processing Services | 1.89% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry, which is trading close to its 3-year average PE ratio of 32.0x.
- Analysts are expecting annual earnings growth of 10.3%, which is higher than its past year's earnings growth of 5.9% per year.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 26% over the next 5 years.
- This is better than its past earnings decline of 28% per year.
- 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$110.75 | 20.7% +US$24.6b | 89.2% | PE89.2x | |
| IBM International Business Machines | US$266.76 | 7.0% +US$16.0b | 57.8% | PE44.2x | |
| CRWV CoreWeave | US$80.30 | 56.3% +US$14.7b | n/a | PS14.2x | |
| NET Cloudflare | US$157.19 | 18.8% +US$8.6b | 108.9% | PS30.8x | |
| ACN Accenture | US$317.69 | 3.2% +US$6.1b | 4.6% | PE25.9x |
