U.S. IT Industry Analysis
UpdatedJul 03, 2024
DataAggregated Company Financials
Companies104
- 7D2.3%
- 3M-8.7%
- 1Y4.6%
- YTD-8.0%
In the last week, the IT industry is up 1.2%, with Snowflake up 14%. This takes the industry's 12 month performance to a gain of 4.0%. 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 |
|---|---|---|---|---|---|---|
| Wed, 03 Jul 2024 | US$712.9b | US$237.0b | US$17.2b | 29.9x | 41.5x | 3x |
| Fri, 31 May 2024 | US$676.5b | US$237.1b | US$17.3b | 27.8x | 39.1x | 2.9x |
| Sun, 28 Apr 2024 | US$712.8b | US$228.0b | US$14.4b | 25.1x | 49.6x | 3.1x |
| Tue, 26 Mar 2024 | US$776.8b | US$227.6b | US$14.6b | 22.3x | 53.3x | 3.4x |
| Thu, 22 Feb 2024 | US$811.4b | US$227.5b | US$14.2b | 22.4x | 57.1x | 3.6x |
| Sat, 20 Jan 2024 | US$800.1b | US$229.4b | US$12.9b | 21.4x | 61.8x | 3.5x |
| Mon, 18 Dec 2023 | US$786.3b | US$229.0b | US$12.8b | 20.3x | 61.4x | 3.4x |
| Wed, 15 Nov 2023 | US$688.6b | US$228.4b | US$12.6b | 21.2x | 54.5x | 3x |
| Fri, 13 Oct 2023 | US$676.3b | US$227.2b | US$6.5b | 20.2x | 104.5x | 3x |
| Sun, 10 Sep 2023 | US$704.4b | US$226.6b | US$6.8b | 23.2x | 103.5x | 3.1x |
| Tue, 08 Aug 2023 | US$684.7b | US$226.3b | US$6.4b | 23.7x | 106.7x | 3x |
| Thu, 06 Jul 2023 | US$679.6b | US$228.6b | US$6.1b | 23.8x | 111.5x | 3x |
| Sat, 03 Jun 2023 | US$673.6b | US$228.3b | US$5.9b | 23.9x | 113.8x | 3x |
| Mon, 01 May 2023 | US$581.7b | US$225.4b | US$3.2b | 21.3x | 182.2x | 2.6x |
| Wed, 29 Mar 2023 | US$577.0b | US$225.7b | US$2.3b | 22.9x | 247.4x | 2.6x |
| Fri, 24 Feb 2023 | US$2.0t | US$462.2b | US$22.4b | 26.6x | 87.7x | 4.3x |
| Sun, 22 Jan 2023 | US$2.0t | US$458.2b | US$39.1b | 28.3x | 51.4x | 4.4x |
| Tue, 20 Dec 2022 | US$1.8t | US$457.7b | US$39.2b | 27.2x | 47.1x | 4x |
| Thu, 17 Nov 2022 | US$1.9t | US$456.2b | US$38.0b | 28.1x | 51.1x | 4.3x |
| Sat, 15 Oct 2022 | US$1.7t | US$449.5b | US$41.7b | 26.3x | 41.8x | 3.9x |
| Mon, 12 Sep 2022 | US$2.0t | US$447.2b | US$41.4b | 27.7x | 49x | 4.5x |
| Wed, 10 Aug 2022 | US$2.1t | US$444.3b | US$42.8b | 29.7x | 48.9x | 4.7x |
| Fri, 08 Jul 2022 | US$2.0t | US$441.6b | US$46.9b | 29.4x | 41.8x | 4.4x |
| Sun, 05 Jun 2022 | US$2.1t | US$438.5b | US$47.0b | 29.1x | 44.4x | 4.8x |
| Tue, 03 May 2022 | US$2.2t | US$435.8b | US$49.1b | 29.6x | 44x | 5x |
| Thu, 31 Mar 2022 | US$2.4t | US$430.1b | US$47.1b | 33.3x | 51.1x | 5.6x |
| Sat, 26 Feb 2022 | US$2.3t | US$420.6b | US$47.5b | 29.3x | 47.9x | 5.4x |
| Mon, 24 Jan 2022 | US$2.4t | US$432.6b | US$48.4b | 32.1x | 49.7x | 5.6x |
| Wed, 22 Dec 2021 | US$2.7t | US$432.0b | US$48.1b | 36.6x | 56.7x | 6.3x |
| Fri, 19 Nov 2021 | US$2.8t | US$430.7b | US$48.7b | 34.9x | 58.4x | 6.6x |
| Sun, 17 Oct 2021 | US$3.0t | US$396.0b | US$46.8b | 34.8x | 63.6x | 7.5x |
| Tue, 14 Sep 2021 | US$2.9t | US$390.1b | US$46.3b | 31.2x | 61.9x | 7.3x |
| Thu, 12 Aug 2021 | US$2.9t | US$389.5b | US$46.2b | 33.5x | 62.5x | 7.4x |
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 41.3x which is lower than its 3-year average PE of 69.5x.
- The 3-year average PS ratio of 4.3x 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 | 0.73% | |
| Tech | 1.95% | |
| IT | 2.26% | |
| Internet Services and Infrastructure | 5.80% | |
| IT Consulting | 0.50% | |
| Data Processing Services | 0.44% | |
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 10.8%, which is higher than its past year's earnings decline of 9.3% 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$141.92 | 14.3% +US$5.9b | -19.8% | PS15.8x | |
| IBM International Business Machines | US$177.30 | 2.7% +US$4.3b | 32.6% | PE20x | |
| MDB MongoDB | US$259.88 | 14.7% +US$2.4b | -36.8% | PS10.8x | |
| SHOP Shopify | US$66.06 | 2.0% +US$1.7b | 1.9% | PS11.5x | |
| NET Cloudflare | US$85.05 | 5.4% +US$1.5b | 29.2% | PS20.9x |
