U.S. IT Industry Analysis
UpdatedJun 21, 2024
DataAggregated Company Financials
Companies108
- 7D3.4%
- 3M-12.6%
- 1Y3.7%
- YTD-10.3%
Over the last 7 days, the IT industry has remained flat, although notably Accenture gained 8.4%. Furthermore, the industry has been flat for the past year as well. 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 |
|---|---|---|---|---|---|---|
| Fri, 21 Jun 2024 | US$681.9b | US$237.2b | US$17.3b | 27.4x | 39.5x | 2.9x |
| Sun, 19 May 2024 | US$716.7b | US$236.8b | US$17.3b | 25.3x | 41.5x | 3x |
| Tue, 16 Apr 2024 | US$735.7b | US$227.8b | US$13.7b | 24.4x | 53.5x | 3.2x |
| Thu, 14 Mar 2024 | US$815.3b | US$227.8b | US$14.4b | 23.1x | 56.7x | 3.6x |
| Sat, 10 Feb 2024 | US$856.9b | US$226.8b | US$13.1b | 22.7x | 65.4x | 3.8x |
| Mon, 08 Jan 2024 | US$758.6b | US$229.5b | US$12.8b | 20x | 59.1x | 3.3x |
| Wed, 06 Dec 2023 | US$759.7b | US$228.9b | US$12.7b | 21.3x | 59.6x | 3.3x |
| Fri, 03 Nov 2023 | US$636.8b | US$228.1b | US$12.1b | 20.6x | 52.6x | 2.8x |
| Sun, 01 Oct 2023 | US$662.3b | US$227.2b | US$6.5b | 24.3x | 102.4x | 2.9x |
| Tue, 29 Aug 2023 | US$674.4b | US$226.3b | US$6.6b | 21.2x | 101.9x | 3x |
| Thu, 27 Jul 2023 | US$694.7b | US$228.6b | US$6.2b | 25.5x | 112x | 3x |
| Sat, 24 Jun 2023 | US$661.8b | US$228.6b | US$6.1b | 23.4x | 107.8x | 2.9x |
| Mon, 22 May 2023 | US$639.0b | US$229.1b | US$5.1b | 21.8x | 124.9x | 2.8x |
| Wed, 19 Apr 2023 | US$595.9b | US$225.6b | US$2.5b | 23.8x | 243x | 2.6x |
| Fri, 17 Mar 2023 | US$1.9t | US$463.9b | US$22.5b | 24.5x | 83.9x | 4.1x |
| Sun, 12 Feb 2023 | US$2.0t | US$459.8b | US$40.7b | 26.8x | 50x | 4.4x |
| Tue, 10 Jan 2023 | US$2.0t | US$458.0b | US$39.2b | 28.7x | 50x | 4.3x |
| Thu, 08 Dec 2022 | US$1.9t | US$457.0b | US$39.0b | 28x | 49.1x | 4.2x |
| Sat, 05 Nov 2022 | US$1.8t | US$454.5b | US$37.8b | 25.4x | 46.8x | 3.9x |
| Mon, 03 Oct 2022 | US$1.8t | US$449.4b | US$41.7b | 25.2x | 42.3x | 3.9x |
| Wed, 31 Aug 2022 | US$2.0t | US$446.6b | US$41.6b | 29x | 48x | 4.5x |
| Fri, 29 Jul 2022 | US$2.0t | US$443.4b | US$47.9b | 29.2x | 41.8x | 4.5x |
| Sun, 26 Jun 2022 | US$2.0t | US$442.1b | US$47.1b | 28.2x | 42.5x | 4.5x |
| Tue, 24 May 2022 | US$2.0t | US$438.6b | US$45.9b | 28x | 43.9x | 4.6x |
| Thu, 21 Apr 2022 | US$2.3t | US$373.8b | US$47.4b | 32.1x | 48.1x | 6.1x |
| Sat, 19 Mar 2022 | US$2.4t | US$428.4b | US$47.5b | 32.5x | 49.6x | 5.5x |
| Mon, 14 Feb 2022 | US$2.4t | US$421.2b | US$48.1b | 31.3x | 50.3x | 5.7x |
| Wed, 12 Jan 2022 | US$2.6t | US$432.3b | US$48.3b | 36.3x | 54.8x | 6.1x |
| Fri, 10 Dec 2021 | US$2.7t | US$429.4b | US$48.0b | 36.1x | 56.7x | 6.3x |
| Sun, 07 Nov 2021 | US$2.9t | US$408.2b | US$51.3b | 36.5x | 56.9x | 7.1x |
| Tue, 05 Oct 2021 | US$2.8t | US$396.0b | US$46.8b | 34.2x | 59.9x | 7.1x |
| Thu, 02 Sep 2021 | US$2.9t | US$389.7b | US$46.2b | 33.6x | 63x | 7.5x |
| Sat, 31 Jul 2021 | US$2.9t | US$388.8b | US$46.4b | 33.5x | 63.2x | 7.5x |
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 39.5x which is lower than its 3-year average PE of 69.5x.
- 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 | 0.41% | |
| Tech | 0.58% | |
| IT | 3.41% | |
| IT Consulting | 5.16% | |
| Data Processing Services | 1.80% | |
| Internet Services and Infrastructure | 0.14% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 34.3x.
- 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 30% 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 | |
|---|---|---|---|---|---|
| ACN Accenture | US$306.16 | 8.4% +US$15.0b | -0.4% | PE27.4x | |
| IBM International Business Machines | US$173.92 | 2.8% +US$4.4b | 32.6% | PE19.6x | |
| CTSH Cognizant Technology Solutions | US$68.14 | 5.5% +US$1.8b | 8.8% | PE16.2x | |
| NET Cloudflare | US$78.45 | 6.7% +US$1.7b | 20.7% | PS19.2x | |
| IT Gartner | US$450.48 | 4.1% +US$1.4b | 30.2% | PE43.9x |
