Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Communications Industry Analysis

UpdatedJan 12, 2026
DataAggregated Company Financials
Companies77
  • 7D-3.8%
  • 3M0.1%
  • 1Y24.0%
  • YTD-3.7%

Over the last 7 days, the Communications industry has dropped 3.8%, driven by a pullback from Arista Networks of 10%. Meanwhile, Ondas Holdings actually outperformed within the industry, gaining 9.3% in the last week. This takes the industry's 12 month performance to a gain of 24%. Earnings are forecast to grow by 17% annually.

Industry Valuation and Performance

Has the U.S. Communications Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 13 Jan 2026US$651.2bUS$106.1bUS$16.7b37.6x38.9x6.1x
Thu, 11 Dec 2025US$702.5bUS$105.9bUS$16.6b33.7x42.3x6.6x
Sat, 08 Nov 2025US$649.7bUS$104.6bUS$16.2b29.1x40.1x6.2x
Mon, 06 Oct 2025US$648.4bUS$103.3bUS$16.0b29.8x40.5x6.3x
Wed, 03 Sep 2025US$623.2bUS$103.0bUS$16.2b25.7x38.4x6x
Fri, 01 Aug 2025US$582.1bUS$100.6bUS$14.1b28.1x41.4x5.8x
Sun, 29 Jun 2025US$560.0bUS$105.7bUS$14.3b28.8x39.1x5.3x
Tue, 27 May 2025US$522.0bUS$105.5bUS$14.3b25.8x36.6x4.9x
Thu, 24 Apr 2025US$450.6bUS$102.8bUS$12.4b24.1x36.2x4.4x
Sat, 22 Mar 2025US$495.8bUS$102.8bUS$12.4b26x39.8x4.8x
Mon, 17 Feb 2025US$557.4bUS$104.1bUS$12.1b28.1x46.2x5.4x
Wed, 15 Jan 2025US$548.5bUS$102.4bUS$11.9b25.2x45.9x5.4x
Fri, 13 Dec 2024US$534.7bUS$102.5bUS$12.1b25.7x44.1x5.2x
Sun, 10 Nov 2024US$523.8bUS$103.2bUS$13.0b24.7x40.2x5.1x
Tue, 08 Oct 2024US$482.8bUS$103.0bUS$12.0b27x40.3x4.7x
Thu, 05 Sep 2024US$444.4bUS$103.0bUS$12.0b26.4x37x4.3x
Sat, 03 Aug 2024US$417.4bUS$102.8bUS$13.8b27.3x30.2x4.1x
Mon, 01 Jul 2024US$350.7bUS$92.7bUS$12.6b26.4x27.8x3.8x
Wed, 29 May 2024US$332.1bUS$92.9bUS$12.7b27.9x26.2x3.6x
Fri, 26 Apr 2024US$384.1bUS$104.8bUS$16.3b31.4x23.6x3.7x
Sun, 24 Mar 2024US$408.3bUS$104.8bUS$16.3b32.3x25.1x3.9x
Tue, 20 Feb 2024US$386.0bUS$104.9bUS$16.5b30.1x23.4x3.7x
Thu, 18 Jan 2024US$335.9bUS$96.1bUS$15.1b25.3x22.2x3.5x
Sat, 16 Dec 2023US$327.1bUS$96.1bUS$15.1b24.7x21.7x3.4x
Mon, 13 Nov 2023US$323.3bUS$95.2bUS$13.9b23.2x23.3x3.4x
Wed, 11 Oct 2023US$326.9bUS$94.7bUS$14.6b23x22.3x3.5x
Fri, 08 Sep 2023US$344.9bUS$94.7bUS$14.6b29.7x23.6x3.6x
Sun, 06 Aug 2023US$323.7bUS$92.1bUS$13.6b26.5x23.8x3.5x
Tue, 04 Jul 2023US$317.9bUS$91.4bUS$13.5b23.7x23.5x3.5x
Thu, 01 Jun 2023US$310.2bUS$91.2bUS$13.5b22.4x23x3.4x
Sat, 29 Apr 2023US$293.7bUS$89.3bUS$13.3b24.9x22.1x3.3x
Mon, 27 Mar 2023US$313.8bUS$89.0bUS$13.1b27.7x23.9x3.5x
Wed, 22 Feb 2023US$301.6bUS$88.7bUS$13.0b28.5x23.1x3.4x
Fri, 20 Jan 2023US$282.9bUS$86.7bUS$13.0b25.9x21.7x3.3x
Price to Earnings Ratio

21.7x


Total Market Cap: US$282.9bTotal Earnings: US$13.0bTotal Revenue: US$86.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Communications Industry Price to Earnings3Y Average 31.6x202420252026
Current Industry PE
  • Investors are optimistic on the American Communications industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 38.9x which is higher than its 3-year average PE of 31.6x.
  • The 3-year average PS ratio of 4.4x is lower than the industry's current PS ratio of 6.1x.
Past Earnings Growth
  • The earnings for companies in the Communications industry have grown 8.6% per year over the last three years.
  • Revenues for these companies have grown 6.9% 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 industry?

US Market1.24%
Tech0.016%
Communications-3.80%
Communications Equipment-3.80%
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
UI UbiquitiUS$580.382.8%
+US$972.8m		60.1%PE44.3x
MSI Motorola SolutionsUS$385.640.8%
+US$493.0m		-15.6%PE30.4x
CIEN CienaUS$234.261.5%
+US$473.3m		184.8%PE267.5x
ONDS Ondas HoldingsUS$13.185.2%
+US$370.1m		601.1%PS204.5x
VSAT ViasatUS$40.425.0%
+US$259.7m		422.2%PS1.2x

Latest News

ONDS
US$13.18
Ondas Holdings
7D
5.2%
1Y
601.1%
DGII
US$41.82
Digi International
7D
-5.3%
1Y
47.1%
LITE
US$339.87
Lumentum Holdings
7D
-4.8%
1Y
305.9%
UI
US$580.38
Ubiquiti
7D
2.8%
1Y
60.1%

Why Ubiquiti Inc. (NYSE:UI) Could Be Worth Watching

Jan 10
Why Ubiquiti Inc. (NYSE:UI) Could Be Worth Watching
ANET
US$123.42
Arista Networks
7D
-10.0%
1Y
9.6%

ANET: AI Networking Ecosystem Will Support Future Upside Despite Margin Concerns

Analysts have lifted their fair value estimate for Arista Networks from $130.00 to about $193.28, reflecting updated assumptions around slightly higher discount rates, modestly softer margin expectations, and ongoing AI driven growth potential despite recent debates on valuation and rating changes. Analyst Commentary Recent research highlights a mix of enthusiasm and caution around Arista Networks, with bullish analysts focused on the company’s role in AI networking and more conservative views pointing to valuation and margin pressures.
COMM
US$19.04
CommScope Holding Company
7D
2.2%
1Y
287.0%

COMM: Secure Connectivity Rollout And Training Initiatives Will Drive Future Outperformance

Analysts have revised their fair value estimate for CommScope Holding Company from US$22.67 to US$24.25. They cite updated assumptions on discount rates, profit margins, and a very large future P/E multiple as the key drivers of the new price target.
GILT
US$17.07
Gilat Satellite Networks
7D
19.3%
1Y
165.7%

GILT: Solid Execution And Cash Generation Support Balanced Risk Reward Outlook

Analysts kept their price target for Gilat Satellite Networks steady at US$14.50, with only minor tweaks to inputs such as the discount rate, long term revenue growth, profit margin, and future P/E assumptions behind their valuation models. What's in the News Reported Q3 earnings per share of US$0.19 versus consensus of US$0.10, with revenue of US$117.7m compared with consensus of US$113.17m.
VSAT
US$40.42
Viasat
7D
5.0%
1Y
422.2%
EXTR
US$15.60
Extreme Networks
7D
-6.3%
1Y
-7.1%
FFIV
US$270.56
F5
7D
-0.6%
1Y
6.0%

FFIV: Breach Overhang And Softer FY26 Outlook Should Gradually Ease

Analysts have trimmed their price targets on F5 and now frame our updated fair value estimate at US$290.30, only slightly above the prior US$287.50. They weigh the short term drag from the security breach, softer FY26 guidance and software renewal uncertainty against a still constructive view on systems demand and the potential for delayed, rather than lost, deals.
CSCO
US$74.01
Cisco Systems
7D
-2.1%
1Y
26.0%

CSCO: AI Infrastructure Demand And Networking Strength Will Support Multi Year Upside

Analysts nudged their Cisco Systems price target higher, citing a modest uptick in fair value and a slightly richer assumed future P/E multiple, supported by recent research highlighting continued strength in networking and growing artificial intelligence related demand despite softer security trends. Analyst Commentary Recent research on Cisco Systems reflects a generally constructive stance, with several firms lifting price targets and a couple of upgrades that highlight how investors are weighing networking strength and artificial intelligence demand against softer security trends.
AAOI
US$34.04
Applied Optoelectronics
7D
-2.7%
1Y
17.4%

AAOI: Texas Expansion And Amazon Contract Expectations Will Shape A Balanced Outlook

Analysts have lifted their fair value estimate for Applied Optoelectronics from $30.60 to $36.60, reflecting updated assumptions on revenue growth, profit margins, and future P/E after recent research visits and valuation checks that highlighted both the company’s manufacturing capabilities and differing views on how much of the Amazon opportunity is already priced in. Analyst Commentary Recent Street research on Applied Optoelectronics presents a split view, with some analysts focusing on the company’s operational strengths and others pointing to valuation risks and ambitious revenue assumptions tied to the Amazon opportunity.
CIEN
US$234.26
Ciena
7D
1.5%
1Y
184.8%
MSI
US$385.64
Motorola Solutions
7D
0.8%
1Y
-15.6%

MSI: Government Deal Delays Will Support Future Recurring Revenue Upside

Analysts have nudged their fair value estimate for Motorola Solutions slightly lower, to about $488 from roughly $494, as modest tweaks to discount rate and growth assumptions follow recent price target cuts that still factor in potential upside from government shutdown related deal timing. Analyst Commentary Recent commentary around Motorola Solutions reflects a mix of confidence in the business outlook and caution around valuation and deal timing.
CALX
US$53.29
Calix
7D
-1.9%
1Y
46.8%

CALX: Third-Gen AI Platform And Q3 Execution Will Support Further Upside

Analysts have raised their Calix price target to US$85 from US$65, citing strong Q3 performance, competitive wins, broad-based demand and expectations that the company's third generation platform could support further execution and valuation upside. Analyst Commentary Bullish analysts are highlighting Calix as a Q3 execution story, with price targets moving to US$85 as they reassess the company’s ability to win share and support higher valuation multiples over time.
ADTN
US$9.36
ADTRAN Holdings
7D
6.8%
1Y
-6.5%

ADTN: Broadband Cycle Recovery Will Drive Stronger Demand Across Diverse Customer Base

Analysts have raised their price target on ADTRAN Holdings from $15.00 to $16.00, citing a recovering demand environment and the company’s strong positioning in broadband access and optical equipment. Analyst Commentary Bullish analysts highlight that ADTRAN is emerging as a key beneficiary of the improving broadband investment cycle, with its solutions aligned to multi-year upgrades in access and optical networks.