U.S. IT Industry Analysis
UpdatedJun 13, 2024
DataAggregated Company Financials
Companies107
- 7D0.6%
- 3M-17.8%
- 1Y-1.4%
- YTD-12.4%
Over the last 7 days, the IT industry has remained flat, although notably Shopify gained 6.9%. Furthermore, the industry has been flat for the past year as well. Earnings are forecast to grow by 17% 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 Jun 2024 | US$686.6b | US$237.2b | US$17.3b | 27.4x | 39.8x | 2.9x |
| Sat, 11 May 2024 | US$713.7b | US$236.9b | US$16.7b | 23.4x | 42.7x | 3x |
| Mon, 08 Apr 2024 | US$763.7b | US$227.8b | US$13.8b | 25.6x | 55.2x | 3.4x |
| Wed, 06 Mar 2024 | US$824.2b | US$227.7b | US$14.3b | 21.2x | 57.6x | 3.6x |
| Fri, 02 Feb 2024 | US$826.1b | US$230.1b | US$13.4b | 23.4x | 61.8x | 3.6x |
| Sun, 31 Dec 2023 | US$797.2b | US$229.5b | US$12.8b | 20.7x | 62.2x | 3.5x |
| Tue, 28 Nov 2023 | US$737.5b | US$228.5b | US$12.7b | 20.6x | 58.1x | 3.2x |
| Thu, 26 Oct 2023 | US$621.1b | US$227.2b | US$6.5b | 18x | 96x | 2.7x |
| Sat, 23 Sep 2023 | US$671.1b | US$226.6b | US$6.8b | 24x | 99x | 3x |
| Mon, 21 Aug 2023 | US$650.0b | US$226.1b | US$6.5b | 20.5x | 99.3x | 2.9x |
| Wed, 19 Jul 2023 | US$709.8b | US$228.7b | US$6.1b | 25.9x | 116.5x | 3.1x |
| Fri, 16 Jun 2023 | US$690.6b | US$228.3b | US$5.9b | 24.2x | 116.7x | 3x |
| Sun, 14 May 2023 | US$615.5b | US$229.7b | US$6.5b | 23.5x | 95x | 2.7x |
| Tue, 11 Apr 2023 | US$590.7b | US$225.6b | US$2.5b | 23.2x | 240.2x | 2.6x |
| Thu, 09 Mar 2023 | US$2.0t | US$463.8b | US$22.5b | 26.4x | 87.3x | 4.2x |
| Sat, 04 Feb 2023 | US$2.1t | US$459.5b | US$40.0b | 28.4x | 51.9x | 4.5x |
| Mon, 02 Jan 2023 | US$1.9t | US$457.8b | US$39.2b | 27.5x | 48.1x | 4.1x |
| Wed, 30 Nov 2022 | US$1.9t | US$456.3b | US$39.0b | 28.3x | 49x | 4.2x |
| Fri, 28 Oct 2022 | US$1.9t | US$453.7b | US$36.9b | 26.5x | 51.2x | 4.2x |
| Sun, 25 Sep 2022 | US$1.8t | US$448.9b | US$41.6b | 25.9x | 43.3x | 4x |
| Tue, 23 Aug 2022 | US$2.1t | US$445.9b | US$41.6b | 29.3x | 49.8x | 4.6x |
| Thu, 21 Jul 2022 | US$2.0t | US$442.9b | US$47.6b | 29.1x | 42.4x | 4.6x |
| Sat, 18 Jun 2022 | US$1.8t | US$439.3b | US$46.9b | 26.6x | 38.8x | 4.1x |
| Mon, 16 May 2022 | US$2.0t | US$438.7b | US$46.3b | 26.3x | 43.1x | 4.6x |
| Wed, 13 Apr 2022 | US$2.3t | US$431.1b | US$47.2b | 32.4x | 48.2x | 5.3x |
| Fri, 11 Mar 2022 | US$2.1t | US$425.3b | US$47.2b | 27.5x | 45.2x | 5x |
| Sun, 06 Feb 2022 | US$2.5t | US$419.5b | US$48.2b | 32.4x | 51.3x | 5.9x |
| Tue, 04 Jan 2022 | US$2.8t | US$432.2b | US$48.3b | 37.6x | 57.6x | 6.4x |
| Thu, 02 Dec 2021 | US$2.6t | US$429.0b | US$48.1b | 34x | 54.7x | 6.1x |
| Sat, 30 Oct 2021 | US$2.9t | US$399.8b | US$49.4b | 35.5x | 57.8x | 7.1x |
| Mon, 27 Sep 2021 | US$3.0t | US$395.6b | US$46.6b | 34.9x | 63.7x | 7.5x |
| Wed, 25 Aug 2021 | US$2.9t | US$389.7b | US$46.2b | 33.6x | 63x | 7.5x |
| Thu, 01 Jul 2021 | US$2.8t | US$387.8b | US$47.0b | 34.3x | 60.6x | 7.3x |
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 39.8x which is lower than its 3-year average PE of 69.7x.
- The 3-year average PS ratio of 4.4x is higher than the industry's current PS ratio of 2.9x.
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 | 1.00% | |
| Tech | 3.98% | |
| IT | 0.60% | |
| Internet Services and Infrastructure | 2.14% | |
| IT Consulting | -0.17% | |
| Data Processing Services | -0.90% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 34.4x.
- Analysts are expecting annual earnings growth of 10.5%, which is higher than its past year's earnings decline of 5.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 31% 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$65.47 | 6.9% +US$5.5b | -0.6% | PS11.4x | |
| NET Cloudflare | US$75.42 | 8.0% +US$1.9b | 9.5% | PS18.5x | |
| IBM International Business Machines | US$169.00 | 1.0% +US$1.5b | 23.2% | PE19x | |
| DXC DXC Technology | US$18.91 | 22.4% +US$619.0m | -29.8% | PE37.2x | |
| CORZ Core Scientific | US$9.57 | 33.8% +US$430.2m | n/a | PS3x |
