U.S. IT Industry Analysis
UpdatedMay 09, 2024
DataAggregated Company Financials
Companies106
- 7D0.3%
- 3M-16.1%
- 1Y17.4%
- YTD-7.3%
The IT is pretty flat in the last 7 days, but Accenture has stood out, gaining 4.5%. The past year has been better, since the industry has gained 17% in that time. 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 |
|---|---|---|---|---|---|---|
| Thu, 09 May 2024 | US$743.8b | US$236.9b | US$16.6b | 27x | 44.7x | 3.1x |
| Sat, 06 Apr 2024 | US$756.8b | US$227.8b | US$13.8b | 25.6x | 54.7x | 3.3x |
| Mon, 04 Mar 2024 | US$821.4b | US$227.7b | US$14.3b | 22.9x | 57.4x | 3.6x |
| Wed, 31 Jan 2024 | US$843.8b | US$230.1b | US$13.4b | 23x | 63.2x | 3.7x |
| Fri, 29 Dec 2023 | US$798.5b | US$229.5b | US$12.8b | 20.8x | 62.3x | 3.5x |
| Sun, 26 Nov 2023 | US$737.5b | US$228.5b | US$12.7b | 20.6x | 58.1x | 3.2x |
| Tue, 24 Oct 2023 | US$632.1b | US$227.2b | US$6.5b | 18.4x | 97.7x | 2.8x |
| Thu, 21 Sep 2023 | US$685.6b | US$226.6b | US$6.8b | 23.8x | 101.1x | 3x |
| Sat, 19 Aug 2023 | US$649.6b | US$226.1b | US$6.5b | 22.1x | 99.3x | 2.9x |
| Mon, 17 Jul 2023 | US$696.9b | US$228.7b | US$6.1b | 25.3x | 114.5x | 3x |
| Wed, 14 Jun 2023 | US$687.5b | US$228.2b | US$5.9b | 24.2x | 116.1x | 3x |
| Fri, 12 May 2023 | US$614.5b | US$229.6b | US$6.5b | 22.9x | 94.3x | 2.7x |
| Sun, 09 Apr 2023 | US$589.8b | US$225.6b | US$2.4b | 23.3x | 246.5x | 2.6x |
| Tue, 07 Mar 2023 | US$2.0t | US$463.7b | US$22.5b | 26.3x | 88.7x | 4.3x |
| Thu, 02 Feb 2023 | US$2.1t | US$460.2b | US$40.0b | 28.5x | 51.7x | 4.5x |
| Sat, 31 Dec 2022 | US$1.9t | US$457.8b | US$39.2b | 27.5x | 48.2x | 4.1x |
| Mon, 28 Nov 2022 | US$2.0t | US$456.3b | US$39.0b | 28.6x | 50x | 4.3x |
| Wed, 26 Oct 2022 | US$1.9t | US$450.4b | US$37.4b | 28.4x | 50.5x | 4.2x |
| Fri, 23 Sep 2022 | US$1.8t | US$447.0b | US$41.4b | 26.1x | 44.1x | 4.1x |
| Sun, 21 Aug 2022 | US$2.1t | US$445.9b | US$41.6b | 29.8x | 50.8x | 4.7x |
| Tue, 19 Jul 2022 | US$1.9t | US$441.6b | US$46.9b | 28.6x | 41.5x | 4.4x |
| Thu, 16 Jun 2022 | US$1.9t | US$439.3b | US$46.9b | 27.1x | 40.6x | 4.3x |
| Sat, 14 May 2022 | US$2.0t | US$438.7b | US$46.3b | 26.3x | 43.1x | 4.6x |
| Mon, 11 Apr 2022 | US$2.3t | US$431.0b | US$47.2b | 33.6x | 49.1x | 5.4x |
| Wed, 09 Mar 2022 | US$2.1t | US$424.6b | US$47.1b | 27.1x | 43.7x | 4.9x |
| Fri, 04 Feb 2022 | US$2.5t | US$418.6b | US$48.9b | 30.8x | 50.1x | 5.9x |
| Sun, 02 Jan 2022 | US$2.8t | US$432.3b | US$48.3b | 38.1x | 57.1x | 6.4x |
| Tue, 30 Nov 2021 | US$2.7t | US$429.0b | US$48.1b | 34.7x | 56.1x | 6.3x |
| Thu, 28 Oct 2021 | US$2.9t | US$397.7b | US$47.9b | 35.3x | 59.7x | 7.2x |
| Sat, 25 Sep 2021 | US$3.0t | US$395.6b | US$46.6b | 34.9x | 63.5x | 7.5x |
| Mon, 23 Aug 2021 | US$2.9t | US$389.5b | US$46.2b | 33.3x | 62.6x | 7.4x |
| Sat, 10 Jul 2021 | US$2.8t | US$387.8b | US$47.0b | 34.3x | 60.6x | 7.3x |
Price to Earnings Ratio
62.6x
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 44.7x which is lower than its 3-year average PE of 70.5x.
- The 3-year average PS ratio of 4.6x is higher than the industry's current PS ratio of 3.1x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 27% per year over the last three years,
- Revenues have also declined 14% 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 | 3.30% | |
| Tech | 5.57% | |
| IT | 0.34% | |
| IT Consulting | 4.39% | |
| Data Processing Services | 2.82% | |
| Internet Services and Infrastructure | -5.99% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 34.6x.
- Analysts are expecting annual earnings growth of 10.7%, 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 29% 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$311.99 | 4.5% +US$8.4b | 16.0% | PE27.9x | |
| IBM International Business Machines | US$169.90 | 3.3% +US$5.0b | 39.2% | PE19.1x | |
| KD Kyndryl Holdings | US$26.55 | 33.5% +US$1.5b | 90.5% | PS0.4x | |
| GDDY GoDaddy | US$131.47 | 7.5% +US$1.2b | 88.3% | PE10.7x | |
| CTSH Cognizant Technology Solutions | US$67.72 | 3.6% +US$1.1b | 8.2% | PE16.1x |
