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Oct 29
U.S. Tech Sector Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies1155
- 7D-1.9%
- 3M-11.0%
- 1Y23.7%
- YTD32.0%
Over the last 7 days, the Tech industry has dropped 1.9%, driven by pullbacks in NVIDIA and Apple of 4.2% and 1.6%, respectively. In the past year, the industry has gained 24%. Looking forward, earnings are forecast to grow by 16% 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 |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | US$11.2t | US$2.0t | US$278.4b | 22.3x | 40.1x | 5.5x |
| Thu, 28 Sep 2023 | US$11.3t | US$2.0t | US$273.1b | 24.1x | 41.5x | 5.6x |
| Sat, 26 Aug 2023 | US$11.7t | US$2.0t | US$270.6b | 24.4x | 43.3x | 5.8x |
| Mon, 24 Jul 2023 | US$12.2t | US$2.0t | US$258.1b | 25.4x | 47.3x | 6x |
| Wed, 21 Jun 2023 | US$11.9t | US$2.0t | US$264.4b | 24.9x | 45x | 5.8x |
| Fri, 19 May 2023 | US$10.8t | US$2.0t | US$262.2b | 23.5x | 41.3x | 5.3x |
| Sun, 16 Apr 2023 | US$10.2t | US$2.0t | US$274.9b | 22.6x | 37.2x | 5x |
| Tue, 14 Mar 2023 | US$10.7t | US$2.3t | US$298.6b | 21.5x | 35.8x | 4.7x |
| Thu, 09 Feb 2023 | US$11.1t | US$2.2t | US$314.0b | 24.4x | 35.4x | 5x |
| Sat, 07 Jan 2023 | US$9.8t | US$2.2t | US$327.4b | 22.1x | 29.8x | 4.3x |
| Mon, 05 Dec 2022 | US$10.6t | US$2.2t | US$329.3b | 23.3x | 32.1x | 4.7x |
| Wed, 02 Nov 2022 | US$10.0t | US$2.2t | US$331.7b | 20.5x | 30.1x | 4.5x |
| Fri, 30 Sep 2022 | US$9.7t | US$2.2t | US$347.3b | 19.3x | 27.9x | 4.4x |
| Sun, 28 Aug 2022 | US$11.2t | US$2.2t | US$346.2b | 22.5x | 32.2x | 5.1x |
| Tue, 26 Jul 2022 | US$11.0t | US$2.2t | US$360.2b | 23.1x | 30.4x | 5.1x |
| Thu, 23 Jun 2022 | US$10.2t | US$2.1t | US$358.6b | 23x | 28.3x | 4.7x |
| Sat, 21 May 2022 | US$10.5t | US$2.1t | US$357.4b | 24.2x | 29.5x | 4.9x |
| Mon, 18 Apr 2022 | US$12.1t | US$2.1t | US$345.7b | 24.1x | 34.9x | 5.9x |
| Wed, 16 Mar 2022 | US$11.9t | US$2.0t | US$345.2b | 24.8x | 34.4x | 5.8x |
| Fri, 11 Feb 2022 | US$13.5t | US$2.1t | US$353.6b | 27.3x | 38.1x | 6.3x |
| Sun, 09 Jan 2022 | US$13.9t | US$2.1t | US$346.7b | 28.4x | 40.2x | 6.5x |
| Tue, 07 Dec 2021 | US$14.2t | US$2.1t | US$345.9b | 28.4x | 40.9x | 6.6x |
| Thu, 04 Nov 2021 | US$14.5t | US$2.1t | US$341.0b | 31.9x | 42.4x | 6.9x |
| Sat, 02 Oct 2021 | US$13.5t | US$2.0t | US$315.5b | 32.7x | 42.6x | 6.6x |
| Mon, 30 Aug 2021 | US$14.0t | US$2.0t | US$310.0b | 31.3x | 45.1x | 7x |
| Tue, 06 Jul 2021 | US$12.9t | US$2.0t | US$309.3b | 30.9x | 41.7x | 6.5x |
| Fri, 09 Apr 2021 | US$11.7t | US$1.9t | US$289.5b | 31.8x | 40.3x | 6.1x |
| Thu, 31 Dec 2020 | US$11.4t | US$1.8t | US$256.8b | 32.2x | 44.5x | 6.2x |
Price to Earnings Ratio
40x
Current Industry PE
- Investors are relatively neutral on the American Information Technology industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 38.7x.
- The industry is trading close to its 3-year average PS ratio of 5.7x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have grown 5.3% per year over the last three years.
- Revenues for these companies have grown 4.7% 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 sector?
| US Market | -2.42% | |
| Tech | -1.93% | |
| Software | -0.92% | |
| Electronic Equipment and Components | -1.79% | |
| Semiconductors | -2.47% | |
| IT | -2.65% | |
| Tech Hardware | -2.72% | |
| Communications | -3.11% | |
Industry PE
- Investors are most optimistic about the Software industry, which is trading close to its 3-year average PE ratio of 60.9x.
- Analysts are expecting annual earnings growth of 17.3%, which is higher than its past year's earnings growth of 13.4% per year.
- Investors are most pessimistic about the Communications industry, which is trading below its 3-year average of 23.9x.
Forecasted Growth
- Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 24% over the next 5 years.
- This is better than its past earnings decline of 3.1% per year.
- In contrast, the Tech Hardware industry is expected to see its earnings grow by 6.6% 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 | |
|---|---|---|---|---|---|
| MSFT Microsoft | US$337.31 | 2.4% +US$60.4b | 45.3% | PE32.5x | |
| INTC Intel | US$35.69 | 5.4% +US$8.7b | 25.5% | PS2.8x | |
| NOW ServiceNow | US$568.54 | 5.0% +US$5.7b | 35.1% | PE73.3x | |
| IBM International Business Machines | US$142.63 | 4.6% +US$5.7b | 3.1% | PE18.3x | |
| FLEX Flex | US$25.56 | 7.8% +US$821.8m | 30.5% | PE14.5x |
