Gavekal Capital: Check Up On Technology Sector Topline

Wednesday, February 26, 2014

Check Up On Technology Sector Topline

The MSCI World information technology sector is a real contrast when it comes to sales expectations. In the table below, we measure the year over year growth rate of sales for each of the next four years for the industries within the technology sector.  We also average that growth rate over the next four years and have sorted the table by this column.  In general, the software based industries represent the highest growth expectations while hardware based represent the lowest.

MSCI World Information Technology Industries Sales Expectations


Recently, however, some the hardware based industries have been experiencing rising sales revisions. All the computer hardware companies have experienced rising sales revisions over the last six months, 92% of electronic component companies and 75% of office electronics have as well.

Breadth of Sales Revisions For Current Year