We Like These Underlying Return On Capital Trends At Shopify (NYSE:SHOP)
Jun 28
U.S. IT Industry Analysis
UpdatedJun 28, 2024
DataAggregated Company Financials
Companies107
- 7D0.9%
- 3M-12.2%
- 1Y4.1%
- YTD-9.4%
The IT is pretty flat in the last 7 days, but Shopify has stood out, gaining 3.9%. As for the the longer term, the industry is up 4.1% over the past 12 months. Looking forward, 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 |
|---|---|---|---|---|---|---|
| Sat, 29 Jun 2024 | US$702.9b | US$237.1b | US$17.2b | 27.9x | 40.9x | 3x |
| Mon, 27 May 2024 | US$707.2b | US$237.0b | US$17.2b | 28.2x | 41x | 3x |
| Wed, 24 Apr 2024 | US$734.3b | US$227.8b | US$13.7b | 24.2x | 53.4x | 3.2x |
| Fri, 22 Mar 2024 | US$816.2b | US$227.7b | US$14.6b | 22.5x | 56.1x | 3.6x |
| Sun, 18 Feb 2024 | US$831.3b | US$227.5b | US$14.2b | 23.4x | 58.5x | 3.7x |
| Tue, 16 Jan 2024 | US$799.2b | US$229.4b | US$12.9b | 20.7x | 61.8x | 3.5x |
| Thu, 14 Dec 2023 | US$770.8b | US$229.0b | US$12.8b | 21x | 60.2x | 3.4x |
| Sat, 11 Nov 2023 | US$679.6b | US$228.4b | US$12.6b | 20.9x | 53.8x | 3x |
| Mon, 09 Oct 2023 | US$668.4b | US$227.2b | US$6.5b | 22.3x | 103.3x | 2.9x |
| Wed, 06 Sep 2023 | US$709.1b | US$226.6b | US$6.8b | 22.3x | 104.2x | 3.1x |
| Fri, 04 Aug 2023 | US$682.9b | US$226.9b | US$6.3b | 23.3x | 109x | 3x |
| Sun, 02 Jul 2023 | US$679.5b | US$228.6b | US$6.1b | 23.6x | 111.5x | 3x |
| Tue, 30 May 2023 | US$646.8b | US$228.0b | US$5.8b | 23.4x | 112.5x | 2.8x |
| Thu, 27 Apr 2023 | US$573.5b | US$165.0b | US$2.7b | 20.9x | 209.9x | 3.5x |
| Sat, 25 Mar 2023 | US$572.3b | US$225.7b | US$2.3b | 22.6x | 245.5x | 2.5x |
| Mon, 20 Feb 2023 | US$2.0t | US$462.1b | US$22.5b | 28.4x | 89.1x | 4.3x |
| Wed, 18 Jan 2023 | US$2.0t | US$458.1b | US$39.2b | 28.9x | 51.4x | 4.4x |
| Fri, 16 Dec 2022 | US$1.9t | US$456.9b | US$39.0b | 27.6x | 48.6x | 4.1x |
| Sun, 13 Nov 2022 | US$1.9t | US$455.9b | US$37.9b | 28.6x | 51.4x | 4.3x |
| Tue, 11 Oct 2022 | US$1.8t | US$449.5b | US$41.7b | 26.1x | 42.7x | 4x |
| Thu, 08 Sep 2022 | US$1.9t | US$446.7b | US$41.5b | 27.9x | 46.8x | 4.3x |
| Sat, 06 Aug 2022 | US$2.1t | US$444.4b | US$42.2b | 29.5x | 49.9x | 4.7x |
| Mon, 04 Jul 2022 | US$1.9t | US$442.4b | US$47.2b | 28.3x | 40.5x | 4.3x |
| Wed, 01 Jun 2022 | US$2.1t | US$438.5b | US$47.3b | 28.6x | 44x | 4.7x |
| Fri, 29 Apr 2022 | US$2.2t | US$434.1b | US$48.7b | 29.9x | 44.6x | 5x |
| Sun, 27 Mar 2022 | US$2.3t | US$426.6b | US$46.2b | 31.1x | 50.3x | 5.5x |
| Tue, 22 Feb 2022 | US$2.3t | US$422.8b | US$47.6b | 29.8x | 48.3x | 5.4x |
| Thu, 20 Jan 2022 | US$2.5t | US$432.5b | US$48.4b | 32.7x | 51.7x | 5.8x |
| Sat, 18 Dec 2021 | US$2.7t | US$432.1b | US$48.1b | 36.2x | 55.7x | 6.2x |
| Mon, 15 Nov 2021 | US$2.9t | US$410.7b | US$51.0b | 36.3x | 57.1x | 7.1x |
| Wed, 13 Oct 2021 | US$2.8t | US$395.9b | US$46.8b | 34.6x | 60.7x | 7.2x |
| Fri, 10 Sep 2021 | US$2.9t | US$390.1b | US$46.3b | 31.2x | 62.5x | 7.4x |
| Sun, 08 Aug 2021 | US$2.9t | US$389.5b | US$46.2b | 33.2x | 63.4x | 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 40.9x which is lower than its 3-year average PE of 69.3x.
- The 3-year average PS ratio of 4.4x is higher than the industry's current PS ratio of 3.0x.
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 | 0.26% | |
| Tech | -0.56% | |
| IT | 0.91% | |
| Internet Services and Infrastructure | 4.66% | |
| Data Processing Services | 0.62% | |
| IT Consulting | -0.89% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 34.2x.
- Analysts are expecting annual earnings growth of 10.7%, which is higher than its past year's earnings decline of 6.1% 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 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 | |
|---|---|---|---|---|---|
| SNOW Snowflake | US$135.09 | 5.7% +US$2.4b | -23.2% | PS15x | |
| NET Cloudflare | US$82.83 | 6.3% +US$1.7b | 26.7% | PS20.3x | |
| MDB MongoDB | US$249.96 | 9.8% +US$1.6b | -39.2% | PS10.4x | |
| SHOP Shopify | US$66.05 | 1.6% +US$1.3b | 2.2% | PS11.5x | |
| OKTA Okta | US$93.61 | 7.7% +US$1.1b | 35.0% | PS6.7x |
