Palantir Technologies (NASDAQ:PLTR) Is Looking To Continue Growing Its Returns On Capital
Feb 07
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U.S. Software Industry Analysis
UpdatedFeb 07, 2025
DataAggregated Company Financials
Companies425
- 7D1.2%
- 3M1.8%
- 1Y11.2%
- YTD3.1%
In the last week, the Software industry is up 1.2%, with Palantir Technologies up 37%. This means that the industry has gained 11% over the past year. Looking forward, earnings are forecast to grow by 17% annually.
Industry Valuation and Performance
Has the U.S. Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 07 Feb 2025 | US$6.5t | US$586.1b | US$131.8b | 41.9x | 49.6x | 11.1x |
| Sun, 05 Jan 2025 | US$6.4t | US$569.1b | US$129.0b | 40.3x | 49.9x | 11.3x |
| Tue, 03 Dec 2024 | US$6.5t | US$566.8b | US$127.5b | 42.2x | 51.2x | 11.5x |
| Thu, 31 Oct 2024 | US$6.2t | US$552.9b | US$124.3b | 38.4x | 49.9x | 11.2x |
| Sat, 28 Sep 2024 | US$6.1t | US$552.4b | US$124.0b | 38.7x | 48.8x | 11x |
| Mon, 26 Aug 2024 | US$5.8t | US$550.2b | US$121.7b | 37.2x | 47.8x | 10.6x |
| Wed, 24 Jul 2024 | US$5.9t | US$531.1b | US$118.4b | 41.1x | 49.8x | 11.1x |
| Fri, 21 Jun 2024 | US$5.9t | US$531.3b | US$118.0b | 40.2x | 49.7x | 11x |
| Sun, 19 May 2024 | US$5.3t | US$474.3b | US$104.9b | 45.1x | 51x | 11.3x |
| Tue, 16 Apr 2024 | US$5.3t | US$466.3b | US$98.4b | 41.1x | 54.2x | 11.4x |
| Thu, 14 Mar 2024 | US$5.4t | US$470.1b | US$98.5b | 46.6x | 55.2x | 11.6x |
| Sat, 10 Feb 2024 | US$5.5t | US$464.2b | US$90.0b | 42.7x | 61.1x | 11.8x |
| Mon, 08 Jan 2024 | US$5.0t | US$486.2b | US$82.8b | 45.1x | 60.3x | 10.3x |
| Wed, 06 Dec 2023 | US$5.0t | US$485.3b | US$82.3b | 44.7x | 61x | 10.3x |
| Fri, 03 Nov 2023 | US$4.6t | US$485.3b | US$79.7b | 43.3x | 57.5x | 9.4x |
| Sun, 01 Oct 2023 | US$4.4t | US$477.3b | US$73.4b | 44.8x | 59.9x | 9.2x |
| Tue, 29 Aug 2023 | US$4.5t | US$474.4b | US$71.2b | 43.5x | 62.6x | 9.4x |
| Thu, 27 Jul 2023 | US$4.6t | US$465.5b | US$63.6b | 47.9x | 71.9x | 9.8x |
| Sat, 24 Jun 2023 | US$4.4t | US$460.5b | US$62.3b | 44x | 70.8x | 9.6x |
| Mon, 22 May 2023 | US$4.2t | US$457.4b | US$61.0b | 39.9x | 68.1x | 9.1x |
| Wed, 19 Apr 2023 | US$3.9t | US$453.6b | US$60.5b | 43.2x | 65x | 8.7x |
| Fri, 17 Mar 2023 | US$3.8t | US$453.7b | US$60.3b | 42.1x | 62.7x | 8.3x |
| Sun, 12 Feb 2023 | US$3.6t | US$437.0b | US$57.8b | 42.8x | 62.6x | 8.3x |
| Tue, 10 Jan 2023 | US$3.2t | US$434.4b | US$60.2b | 39.9x | 52.9x | 7.3x |
| Thu, 08 Dec 2022 | US$3.3t | US$433.6b | US$61.0b | 43.4x | 54x | 7.6x |
| Sat, 05 Nov 2022 | US$3.0t | US$421.6b | US$62.7b | 38.8x | 47.8x | 7.1x |
| Mon, 03 Oct 2022 | US$3.2t | US$412.2b | US$64.7b | 38.9x | 49.2x | 7.7x |
| Wed, 31 Aug 2022 | US$3.6t | US$412.2b | US$65.2b | 45x | 55.9x | 8.8x |
| Fri, 29 Jul 2022 | US$3.7t | US$414.9b | US$68.2b | 40.2x | 54.4x | 8.9x |
| Sun, 26 Jun 2022 | US$3.8t | US$408.8b | US$67.7b | 39.3x | 55.4x | 9.2x |
| Tue, 24 May 2022 | US$3.6t | US$406.9b | US$68.6b | 41.1x | 52.7x | 8.9x |
| Thu, 21 Apr 2022 | US$4.1t | US$392.7b | US$67.9b | 41.6x | 60.8x | 10.5x |
| Sat, 19 Mar 2022 | US$4.4t | US$396.4b | US$69.0b | 39.4x | 63.5x | 11.1x |
| Mon, 14 Feb 2022 | US$4.5t | US$404.1b | US$73.1b | 39.5x | 61.8x | 11.2x |
Price to Earnings Ratio
61.8x
Current Industry PE
- Investors are pessimistic on the American Software 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 49.6x which is lower than its 3-year average PE of 57.0x.
- The 3-year average PS ratio of 9.9x is lower than the industry's current PS ratio of 11.1x.
Past Earnings Growth
- The earnings for companies in the Software industry have grown 22% per year over the last three years.
- Revenues for these companies have grown 13% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Tech industry?
| US Market | 0.16% | |
| Tech | 1.86% | |
| Software | 1.20% | |
| Application Software | 2.46% | |
| Systems Software | 0.55% | |
Industry PE
- Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 22.3%, which is lower than the prior year's growth of 49.3% per year.
- Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 37.7x.
Forecasted Growth
- Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 22% over the next 5 years.
- However this is lower than its past earnings growth rate of 49% per year.
- In contrast, the Systems Software industry is expected to see its earnings grow by 14% 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 | |
|---|---|---|---|---|---|
| PLTR Palantir Technologies | US$111.28 | 37.0% +US$68.5b | 354.0% | PE548.5x | |
| MSFT Microsoft | US$415.82 | 0.2% +US$6.2b | 0.4% | PE33.3x | |
| CRWD CrowdStrike Holdings | US$420.51 | 6.0% +US$5.8b | 30.2% | PE817.4x | |
| ORCL Oracle | US$172.35 | 1.2% +US$5.5b | 47.7% | PE41.5x | |
| APP AppLovin | US$380.63 | 4.1% +US$5.1b | 717.7% | PE111.1x |