The Strong Earnings Posted By Palo Alto Networks (NASDAQ:PANW) Are A Good Indication Of The Strength Of The Business
Nov 28
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U.S. Tech Sector Analysis
UpdatedNov 28, 2024
DataAggregated Company Financials
Companies943
- 7D0.02%
- 3M8.3%
- 1Y38.7%
- YTD36.1%
In the last week, the Tech industry is flat overall, with NVIDIA standing out by going down 7.2%. The past year has been better, since the industry has gained 39% in that time. Earnings are forecast to grow by 19% annually.
Sector Valuation and Performance
Has the U.S. Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 28 Nov 2024 | US$18.2t | US$2.2t | US$361.4b | 33x | 50.3x | 8.1x |
| Sat, 26 Oct 2024 | US$17.7t | US$2.2t | US$378.1b | 30.6x | 46.8x | 8x |
| Mon, 23 Sep 2024 | US$17.0t | US$2.2t | US$375.4b | 28.8x | 45.2x | 7.8x |
| Wed, 21 Aug 2024 | US$17.1t | US$2.1t | US$368.2b | 29.7x | 46.3x | 8x |
| Fri, 19 Jul 2024 | US$17.0t | US$2.1t | US$363.1b | 31.3x | 46.8x | 8x |
| Sun, 16 Jun 2024 | US$17.0t | US$2.1t | US$360.7b | 29.1x | 47.1x | 8x |
| Tue, 14 May 2024 | US$14.6t | US$2.0t | US$337.0b | 29.5x | 43.3x | 7.2x |
| Thu, 11 Apr 2024 | US$14.6t | US$2.0t | US$328.6b | 28.1x | 44.4x | 7.1x |
| Sat, 09 Mar 2024 | US$14.7t | US$2.0t | US$324.8b | 28.3x | 45.1x | 7.2x |
| Mon, 05 Feb 2024 | US$14.2t | US$2.1t | US$305.9b | 26.6x | 46.3x | 6.9x |
| Wed, 03 Jan 2024 | US$13.1t | US$2.1t | US$292.7b | 25.9x | 44.6x | 6.4x |
| Fri, 01 Dec 2023 | US$12.8t | US$2.1t | US$292.6b | 24.9x | 43.7x | 6.2x |
| Sun, 29 Oct 2023 | US$11.2t | US$2.0t | US$278.4b | 22.2x | 40.1x | 5.5x |
| Tue, 26 Sep 2023 | US$11.5t | US$2.0t | US$273.1b | 24.7x | 42.1x | 5.6x |
| Thu, 24 Aug 2023 | US$11.9t | US$2.0t | US$264.9b | 24.3x | 44.9x | 5.9x |
| Sat, 22 Jul 2023 | US$12.2t | US$2.0t | US$258.1b | 25.5x | 47.3x | 6x |
| Mon, 19 Jun 2023 | US$11.9t | US$2.0t | US$264.4b | 24.9x | 45.2x | 5.9x |
| Wed, 17 May 2023 | US$10.5t | US$2.0t | US$262.0b | 22.9x | 39.9x | 5.2x |
| Fri, 14 Apr 2023 | US$10.3t | US$2.0t | US$274.9b | 22.9x | 37.3x | 5x |
| Sun, 12 Mar 2023 | US$10.6t | US$2.3t | US$298.6b | 21.8x | 35.7x | 4.7x |
| Tue, 07 Feb 2023 | US$11.0t | US$2.2t | US$314.5b | 24.8x | 35x | 4.9x |
| Thu, 05 Jan 2023 | US$9.7t | US$2.2t | US$327.4b | 21.4x | 29.6x | 4.3x |
| Sat, 03 Dec 2022 | US$10.6t | US$2.2t | US$329.3b | 23.3x | 32.1x | 4.7x |
| Mon, 31 Oct 2022 | US$10.2t | US$2.2t | US$331.4b | 20.6x | 30.8x | 4.6x |
| Wed, 28 Sep 2022 | US$9.8t | US$2.2t | US$347.2b | 19.1x | 28.3x | 4.5x |
| Fri, 26 Aug 2022 | US$11.5t | US$2.2t | US$346.4b | 23.4x | 33.2x | 5.3x |
| Sun, 24 Jul 2022 | US$11.0t | US$2.2t | US$360.2b | 23.1x | 30.5x | 5.1x |
| Tue, 21 Jun 2022 | US$9.9t | US$2.1t | US$358.6b | 22.7x | 27.7x | 4.6x |
| Thu, 19 May 2022 | US$11.0t | US$2.1t | US$357.0b | 23.9x | 30.8x | 5.2x |
| Sat, 16 Apr 2022 | US$12.1t | US$2.1t | US$345.8b | 24x | 34.9x | 5.9x |
| Mon, 14 Mar 2022 | US$11.8t | US$2.0t | US$345.0b | 25.1x | 34.1x | 5.8x |
| Wed, 09 Feb 2022 | US$13.5t | US$2.2t | US$354.1b | 26.5x | 38x | 6.2x |
| Fri, 07 Jan 2022 | US$14.1t | US$2.1t | US$346.7b | 28.7x | 40.7x | 6.6x |
| Sun, 05 Dec 2021 | US$14.0t | US$2.1t | US$345.9b | 28.1x | 40.6x | 6.6x |
Price to Earnings Ratio
40.6x
Current Industry PE
- Investors are optimistic on the American Information Technology industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 50.3x which is higher than its 3-year average PE of 39.6x.
- The 3-year average PS ratio of 6.1x is lower than the industry's current PS ratio of 8.1x.
Past Earnings Growth
- Both revenue and earnings for companies in the Information Technology industry have remained mostly flat over the last three years.
- This means that sales and the cost of doing business have remained relatively consistent over this period and subsequently, so have profits.
Industry Trends
Which industries have driven the changes within the U.S. Tech sector?
| US Market | 1.63% | |
| Tech | 0.022% | |
| IT | 6.34% | |
| Communications | 3.48% | |
| Tech Hardware | 2.77% | |
| Electronic Equipment and Components | 2.46% | |
| Software | 1.20% | |
| Semiconductors | -4.10% | |
Industry PE
- Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 39.0x.
- Analysts are expecting annual earnings growth of 28.6%, which is higher than its past year's earnings decline of 3.6% per year.
- Investors are most pessimistic about the Electronic Equipment and Components industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 25.4x.
Forecasted Growth
- Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 29% over the next 5 years.
- This is better than its past earnings decline of 3.6% per year.
- In contrast, the Tech Hardware industry is expected to see its earnings grow by 10% 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 | |
|---|---|---|---|---|---|
| AAPL Apple | US$234.93 | 2.6% +US$89.6b | 24.1% | PE37.9x | |
| MSFT Microsoft | US$422.99 | 1.8% +US$55.8b | 11.7% | PE34.7x | |
| SNOW Snowflake | US$173.70 | 34.5% +US$14.9b | -0.9% | PS17.1x | |
| IBM International Business Machines | US$226.92 | 5.7% +US$11.4b | 45.1% | PE32.9x | |
| SHOP Shopify | US$112.54 | 8.3% +US$11.1b | 53.5% | PE105.1x |
