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U.S. IT Industry Analysis
UpdatedSep 02, 2024
DataAggregated Company Financials
Companies99
- 7D1.0%
- 3M16.3%
- 1Y8.3%
- YTD-0.6%
The IT industry has been flat over the last week, but Okta has lost 19%. As for the the longer term, the industry is up 8.3% over the past 12 months. As for the next few years, earnings are expected to grow by 13% 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 |
|---|---|---|---|---|---|---|
| Mon, 02 Sep 2024 | US$761.2b | US$233.3b | US$17.5b | 38.4x | 43.4x | 3.3x |
| Wed, 31 Jul 2024 | US$741.6b | US$237.1b | US$17.4b | 29.2x | 42.7x | 3.1x |
| Fri, 28 Jun 2024 | US$702.9b | US$237.1b | US$17.2b | 27.9x | 40.9x | 3x |
| Sun, 26 May 2024 | US$707.2b | US$237.0b | US$17.2b | 28.2x | 41x | 3x |
| Tue, 23 Apr 2024 | US$719.3b | US$227.7b | US$13.7b | 24x | 52.3x | 3.2x |
| Thu, 21 Mar 2024 | US$804.9b | US$227.7b | US$14.4b | 22.7x | 56x | 3.5x |
| Sat, 17 Feb 2024 | US$839.7b | US$227.5b | US$14.2b | 23.4x | 59.1x | 3.7x |
| Mon, 15 Jan 2024 | US$799.2b | US$229.4b | US$12.9b | 20.7x | 61.8x | 3.5x |
| Wed, 13 Dec 2023 | US$770.8b | US$229.0b | US$12.8b | 20.6x | 60.2x | 3.4x |
| Fri, 10 Nov 2023 | US$690.1b | US$228.4b | US$12.6b | 20.6x | 54.6x | 3x |
| Sun, 08 Oct 2023 | US$668.4b | US$227.2b | US$6.5b | 22.3x | 103.3x | 2.9x |
| Tue, 05 Sep 2023 | US$710.1b | US$226.6b | US$6.8b | 21.9x | 104.4x | 3.1x |
| Thu, 03 Aug 2023 | US$686.5b | US$226.7b | US$6.4b | 23.6x | 106.9x | 3x |
| Sat, 01 Jul 2023 | US$679.5b | US$228.6b | US$6.1b | 23.6x | 111.5x | 3x |
| Mon, 29 May 2023 | US$646.8b | US$229.3b | US$5.1b | 23.4x | 127.6x | 2.8x |
| Wed, 26 Apr 2023 | US$567.5b | US$225.6b | US$2.7b | 21.2x | 207.7x | 2.5x |
| Fri, 24 Mar 2023 | US$572.4b | US$225.0b | US$2.4b | 22.4x | 234.8x | 2.5x |
| Sun, 19 Feb 2023 | US$2.0t | US$461.4b | US$22.7b | 28.4x | 88.4x | 4.3x |
| Tue, 17 Jan 2023 | US$2.0t | US$458.1b | US$39.1b | 29.2x | 51.2x | 4.4x |
| Thu, 15 Dec 2022 | US$2.0t | US$457.0b | US$39.0b | 28.2x | 50.4x | 4.3x |
| Sat, 12 Nov 2022 | US$1.9t | US$455.9b | US$37.9b | 28.6x | 51.4x | 4.3x |
| Mon, 10 Oct 2022 | US$1.8t | US$449.6b | US$41.7b | 26.3x | 43.3x | 4x |
| Wed, 07 Sep 2022 | US$1.9t | US$446.7b | US$41.5b | 27.9x | 46.8x | 4.3x |
| Fri, 05 Aug 2022 | US$2.1t | US$443.4b | US$42.9b | 29.9x | 48.7x | 4.7x |
| Sun, 03 Jul 2022 | US$1.9t | US$442.4b | US$47.2b | 28.3x | 40.5x | 4.3x |
| Tue, 31 May 2022 | US$2.1t | US$438.6b | US$47.3b | 27.6x | 44.3x | 4.8x |
| Thu, 28 Apr 2022 | US$2.2t | US$433.7b | US$48.6b | 29.4x | 44.5x | 5x |
| Sat, 26 Mar 2022 | US$2.3t | US$430.2b | US$47.0b | 30.6x | 49.5x | 5.4x |
| Mon, 21 Feb 2022 | US$2.3t | US$422.8b | US$47.7b | 29.8x | 48.3x | 5.4x |
| Wed, 19 Jan 2022 | US$2.5t | US$432.3b | US$48.3b | 32.5x | 52.3x | 5.8x |
| Fri, 17 Dec 2021 | US$2.7t | US$428.9b | US$47.8b | 36.5x | 56.1x | 6.3x |
| Sun, 14 Nov 2021 | US$2.9t | US$410.6b | US$51.0b | 36.3x | 57.1x | 7.1x |
| Tue, 12 Oct 2021 | US$2.8t | US$396.0b | US$46.8b | 34.1x | 60.5x | 7.1x |
| Thu, 09 Sep 2021 | US$2.9t | US$390.1b | US$46.3b | 31.6x | 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 43.4x which is lower than its 3-year average PE of 68.2x.
- The 3-year average PS ratio of 4.2x is higher than the industry's current PS ratio of 3.3x.
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 | 0.46% | |
| Tech | -0.35% | |
| IT | 0.98% | |
| IT Consulting | 1.68% | |
| Data Processing Services | 1.04% | |
| Internet Services and Infrastructure | -0.61% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 33.8x.
- Analysts are expecting annual earnings growth of 10.5%, 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 18% 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 | |
|---|---|---|---|---|---|
| IBM International Business Machines | US$202.13 | 2.1% +US$3.8b | 36.6% | PE22.2x | |
| MDB MongoDB | US$290.79 | 18.2% +US$3.4b | -26.0% | PS11.8x | |
| ACN Accenture | US$341.95 | 1.5% +US$3.2b | 4.3% | PE30.8x | |
| IT Gartner | US$491.96 | 2.0% +US$743.6m | 40.5% | PE45.7x | |
| CTSH Cognizant Technology Solutions | US$77.77 | 1.2% +US$475.8m | 8.4% | PE17.6x |
