Shopify (NYSE:SHOP) Posted Healthy Earnings But There Are Some Other Factors To Be Aware Of
Aug 20
U.S. IT Industry Analysis
UpdatedAug 21, 2024
DataAggregated Company Financials
Companies99
- 7D3.3%
- 3M7.1%
- 1Y15.2%
- YTD-1.8%
Over the last 7 days, the IT industry has risen 3.3%, driven by gains in Accenture and Shopify of 3.5% and 7.1%, respectively. This takes the industry's 12 month performance to a gain of 15%. Looking forward, 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 |
|---|---|---|---|---|---|---|
| Wed, 21 Aug 2024 | US$752.3b | US$232.8b | US$17.5b | 35.3x | 42.9x | 3.2x |
| Fri, 19 Jul 2024 | US$747.7b | US$236.9b | US$17.2b | 29.4x | 43.5x | 3.2x |
| Sun, 16 Jun 2024 | US$684.8b | US$237.2b | US$17.3b | 27.4x | 39.7x | 2.9x |
| Tue, 14 May 2024 | US$713.7b | US$236.9b | US$16.7b | 24.3x | 42.7x | 3x |
| Thu, 11 Apr 2024 | US$767.2b | US$227.7b | US$13.8b | 25x | 55.5x | 3.4x |
| Sat, 09 Mar 2024 | US$812.2b | US$227.8b | US$14.3b | 23.9x | 56.6x | 3.6x |
| Mon, 05 Feb 2024 | US$843.7b | US$229.9b | US$13.5b | 22.4x | 62.7x | 3.7x |
| Wed, 03 Jan 2024 | US$773.4b | US$229.5b | US$12.8b | 20.6x | 60.4x | 3.4x |
| Fri, 01 Dec 2023 | US$746.7b | US$228.8b | US$12.8b | 20.7x | 58.3x | 3.3x |
| Sun, 29 Oct 2023 | US$620.2b | US$227.8b | US$11.4b | 17.6x | 54.4x | 2.7x |
| Tue, 26 Sep 2023 | US$672.1b | US$226.6b | US$6.8b | 24.8x | 99.1x | 3x |
| Thu, 24 Aug 2023 | US$674.7b | US$226.2b | US$6.6b | 20.8x | 102.2x | 3x |
| Sat, 22 Jul 2023 | US$693.0b | US$228.6b | US$6.2b | 25.5x | 111.7x | 3x |
| Mon, 19 Jun 2023 | US$694.9b | US$228.3b | US$5.9b | 24.4x | 117.5x | 3x |
| Wed, 17 May 2023 | US$621.0b | US$229.7b | US$6.4b | 23.5x | 96.3x | 2.7x |
| Fri, 14 Apr 2023 | US$592.9b | US$225.6b | US$2.5b | 24.1x | 240.9x | 2.6x |
| Sun, 12 Mar 2023 | US$1.9t | US$463.9b | US$22.4b | 25.1x | 84x | 4x |
| Tue, 07 Feb 2023 | US$2.1t | US$459.6b | US$40.0b | 28.1x | 51.3x | 4.5x |
| Thu, 05 Jan 2023 | US$1.9t | US$457.7b | US$39.2b | 27.7x | 49x | 4.2x |
| Sat, 03 Dec 2022 | US$2.0t | US$456.9b | US$39.0b | 29.3x | 51.3x | 4.4x |
| Mon, 31 Oct 2022 | US$1.9t | US$453.7b | US$36.9b | 26.8x | 52.1x | 4.2x |
| Wed, 28 Sep 2022 | US$1.8t | US$449.1b | US$41.6b | 25.3x | 42.5x | 3.9x |
| Fri, 26 Aug 2022 | US$2.1t | US$446.5b | US$41.6b | 29.9x | 50.2x | 4.7x |
| Sun, 24 Jul 2022 | US$2.0t | US$442.9b | US$47.6b | 30x | 42.5x | 4.6x |
| Tue, 21 Jun 2022 | US$1.8t | US$439.3b | US$46.9b | 26.6x | 39.2x | 4.2x |
| Thu, 19 May 2022 | US$2.0t | US$438.0b | US$46.0b | 27.2x | 43.2x | 4.5x |
| Sat, 16 Apr 2022 | US$2.3t | US$431.0b | US$47.2b | 31.3x | 48.2x | 5.3x |
| Mon, 14 Mar 2022 | US$2.1t | US$425.3b | US$47.2b | 27.2x | 44.4x | 4.9x |
| Wed, 09 Feb 2022 | US$2.5t | US$419.6b | US$48.2b | 32.3x | 51.2x | 5.9x |
| Fri, 07 Jan 2022 | US$2.7t | US$432.2b | US$48.3b | 36.1x | 55.1x | 6.2x |
| Sun, 05 Dec 2021 | US$2.6t | US$429.3b | US$48.0b | 34.9x | 53.9x | 6x |
| Tue, 02 Nov 2021 | US$2.9t | US$400.9b | US$50.3b | 35x | 57.2x | 7.2x |
| Thu, 30 Sep 2021 | US$2.8t | US$395.8b | US$46.6b | 35.1x | 60.9x | 7.2x |
| Sat, 28 Aug 2021 | US$2.9t | US$389.7b | US$46.2b | 33.7x | 63x | 7.5x |
Price to Earnings Ratio
63x
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 42.9x which is lower than its 3-year average PE of 68.4x.
- The 3-year average PS ratio of 4.2x is higher than the industry's current PS ratio of 3.2x.
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 | 3.06% | |
| Tech | 4.56% | |
| IT | 3.29% | |
| Internet Services and Infrastructure | 4.45% | |
| IT Consulting | 2.76% | |
| Data Processing Services | 1.70% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 33.9x.
- Analysts are expecting annual earnings growth of 10.6%, which is higher than its past year's earnings decline of 10.3% 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 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 | |
|---|---|---|---|---|---|
| ACN Accenture | US$330.37 | 3.5% +US$6.9b | 7.0% | PE29.8x | |
| SHOP Shopify | US$74.87 | 7.1% +US$6.4b | 38.8% | PE75.9x | |
| IBM International Business Machines | US$196.03 | 2.6% +US$4.6b | 38.5% | PE21.5x | |
| SNOW Snowflake | US$131.92 | 3.8% +US$1.6b | -13.5% | PS14.7x | |
| OKTA Okta | US$97.61 | 5.2% +US$805.8m | 36.7% | PS7x |
