Swedish (OMX) Telecom Sector Analysis

Sector Valuation and Performance

Has the Swedish Telecom Sector valuation changed over the past few years?

Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 47.2x which is higher than its 3-year average PE of 32.4x. It appears they are confident that earnings will grow faster in the future than they have historically.

Past Earnings Growth: Total earnings for the Communication Services industry have declined over the last three years, with the industry now making a loss overall. But revenues have grown 9.0% per year. This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the Swedish Telecom sector?

Industry PE: Investors are most optimistic about the Entertainment industry which is trading above its 3-year average PE ratio of 51.5x. This is likely because analysts are expecting annual earnings growth of 74%, which is higher than its past year's earnings growth of 17% per year. Meanwhile, investors are most pessimistic about the Wireless Telecom industry, which is trading below its 3-year average of 52.2x.

Forecasted Growth: Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 74% over the next 5 years. This is better than it's past earnings growth rate of 17% per year. Meanwhile, the Telecom Services and Carriers industry is expected to see its earnings decline by 4.5% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?