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U.S. IT Industry Analysis
UpdatedSep 26, 2024
DataAggregated Company Financials
Companies105
- 7D2.1%
- 3M13.7%
- 1Y19.4%
- YTD1.9%
The IT industry is up 2.6% in the last week, with Shopify up 7.9%. In the last 12 months, the industry was up 21%. Earnings are forecast to grow by 14% 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, 26 Sep 2024 | US$786.1b | US$233.3b | US$17.5b | 41.5x | 44.9x | 3.4x |
| Sat, 24 Aug 2024 | US$745.4b | US$233.1b | US$17.4b | 34.1x | 42.7x | 3.2x |
| Mon, 22 Jul 2024 | US$739.1b | US$236.9b | US$17.2b | 28.9x | 43.1x | 3.1x |
| Wed, 19 Jun 2024 | US$685.6b | US$237.2b | US$17.3b | 26.6x | 39.7x | 2.9x |
| Fri, 17 May 2024 | US$720.5b | US$236.9b | US$16.7b | 24.5x | 43.1x | 3x |
| Sun, 14 Apr 2024 | US$752.7b | US$227.8b | US$13.7b | 25x | 54.7x | 3.3x |
| Tue, 12 Mar 2024 | US$802.3b | US$227.8b | US$14.3b | 22.8x | 55.9x | 3.5x |
| Thu, 08 Feb 2024 | US$816.2b | US$226.7b | US$13.1b | 19.7x | 62.4x | 3.6x |
| Sat, 06 Jan 2024 | US$757.8b | US$229.5b | US$12.8b | 20x | 59x | 3.3x |
| Mon, 04 Dec 2023 | US$761.8b | US$228.9b | US$12.7b | 21.2x | 59.8x | 3.3x |
| Wed, 01 Nov 2023 | US$632.6b | US$227.8b | US$11.4b | 19.8x | 55.5x | 2.8x |
| Fri, 29 Sep 2023 | US$657.2b | US$227.2b | US$6.5b | 24x | 101.3x | 2.9x |
| Sun, 27 Aug 2023 | US$674.4b | US$226.3b | US$6.6b | 21.2x | 101.9x | 3x |
| Tue, 25 Jul 2023 | US$693.1b | US$228.6b | US$6.2b | 25.6x | 111.7x | 3x |
| Thu, 22 Jun 2023 | US$675.0b | US$228.2b | US$5.9b | 23.2x | 114.1x | 3x |
| Sat, 20 May 2023 | US$639.4b | US$229.3b | US$5.2b | 21.8x | 123.7x | 2.8x |
| Mon, 17 Apr 2023 | US$588.9b | US$225.6b | US$2.5b | 23.6x | 239.4x | 2.6x |
| Wed, 15 Mar 2023 | US$1.9t | US$463.9b | US$22.4b | 25x | 84.3x | 4.1x |
| Fri, 10 Feb 2023 | US$2.0t | US$459.5b | US$40.5b | 26.6x | 50.4x | 4.4x |
| Sun, 08 Jan 2023 | US$1.9t | US$458.0b | US$39.2b | 27.3x | 49.5x | 4.2x |
| Tue, 06 Dec 2022 | US$2.0t | US$456.9b | US$39.0b | 28.9x | 50.1x | 4.3x |
| Thu, 03 Nov 2022 | US$1.8t | US$453.0b | US$37.5b | 26.1x | 48.9x | 4x |
| Sat, 01 Oct 2022 | US$1.8t | US$449.4b | US$41.7b | 25.2x | 42.3x | 3.9x |
| Mon, 29 Aug 2022 | US$2.0t | US$446.6b | US$41.6b | 29x | 48.7x | 4.5x |
| Wed, 27 Jul 2022 | US$2.0t | US$442.9b | US$47.6b | 28.9x | 41.6x | 4.5x |
| Fri, 24 Jun 2022 | US$1.9t | US$442.1b | US$47.1b | 27.2x | 40.7x | 4.3x |
| Sun, 22 May 2022 | US$2.0t | US$438.4b | US$45.9b | 27.4x | 42.9x | 4.5x |
| Tue, 19 Apr 2022 | US$2.3t | US$431.1b | US$47.1b | 31x | 47.8x | 5.2x |
| Thu, 17 Mar 2022 | US$2.2t | US$425.4b | US$47.2b | 30x | 47.5x | 5.3x |
| Sat, 12 Feb 2022 | US$2.4t | US$421.5b | US$48.1b | 31.3x | 50.3x | 5.7x |
| Mon, 10 Jan 2022 | US$2.6t | US$432.2b | US$48.3b | 36.1x | 54.6x | 6.1x |
| Wed, 08 Dec 2021 | US$2.6t | US$429.3b | US$48.0b | 35.6x | 54.8x | 6.1x |
| Fri, 05 Nov 2021 | US$2.9t | US$406.8b | US$51.3b | 36x | 56.2x | 7.1x |
| Sun, 03 Oct 2021 | US$2.9t | US$396.0b | US$46.8b | 34.8x | 61.6x | 7.3x |
Price to Earnings Ratio
61.6x
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 44.9x which is lower than its 3-year average PE of 67.8x.
- The 3-year average PS ratio of 4.1x is higher than the industry's current PS ratio of 3.4x.
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 16% 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 | 1.85% | |
| Tech | 3.70% | |
| IT | 2.08% | |
| Internet Services and Infrastructure | 4.20% | |
| IT Consulting | 1.18% | |
| Data Processing Services | -0.17% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 33.7x.
- Analysts are expecting annual earnings growth of 10.2%, which is higher than its past year's earnings decline of 10.4% per year.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 22% over the next 5 years.
- 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 | |
|---|---|---|---|---|---|
| IBM International Business Machines | US$221.23 | 2.9% +US$5.8b | 54.5% | PE24.2x | |
| SHOP Shopify | US$79.26 | 5.4% +US$5.2b | 52.9% | PE80.4x | |
| NET Cloudflare | US$83.41 | 6.8% +US$1.8b | 37.8% | PS19.3x | |
| GDDY GoDaddy | US$158.81 | 2.9% +US$638.6m | 117.9% | PE12.5x | |
| SNOW Snowflake | US$112.62 | 1.7% +US$616.8m | -23.7% | PS11.8x |
