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

U.S. Communications Industry Analysis

UpdatedFeb 22, 2026
DataAggregated Company Financials
Companies76
  • 7D1.8%
  • 3M17.0%
  • 1Y44.2%
  • YTD11.0%

The Communications industry is up 1.8% in the last week, with Cisco Systems up 3.1%. During this same period, the Arista Networks underperformed, falling 6.2%. This means that the industry has gained 44% over the past year. As for the next few years, earnings are expected to grow by 18% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 22 Feb 2026US$750.5bUS$108.9bUS$18.1b43.1x41.4x6.9x
Tue, 20 Jan 2026US$669.2bUS$106.1bUS$16.7b31.5x40x6.3x
Thu, 18 Dec 2025US$671.9bUS$106.1bUS$16.7b30.7x40.2x6.3x
Sat, 15 Nov 2025US$653.1bUS$105.8bUS$16.6b30.9x39.4x6.2x
Mon, 13 Oct 2025US$659.3bUS$103.3bUS$16.0b29.7x41.2x6.4x
Wed, 10 Sep 2025US$634.0bUS$103.3bUS$16.0b27.2x39.6x6.1x
Fri, 08 Aug 2025US$613.3bUS$101.3bUS$14.4b25.1x42.7x6.1x
Sun, 06 Jul 2025US$557.9bUS$100.5bUS$14.0b28.8x39.9x5.6x
Tue, 03 Jun 2025US$515.1bUS$105.5bUS$14.3b26.1x35.9x4.9x
Thu, 01 May 2025US$481.8bUS$102.9bUS$12.5b19.3x38.6x4.7x
Sat, 29 Mar 2025US$494.3bUS$102.8bUS$12.4b25.6x39.7x4.8x
Mon, 24 Feb 2025US$536.3bUS$104.5bUS$12.3b27.7x43.8x5.1x
Wed, 22 Jan 2025US$561.7bUS$102.4bUS$11.9b25.9x47x5.5x
Fri, 20 Dec 2024US$527.8bUS$102.5bUS$12.1b24.4x43.7x5.2x
Sun, 17 Nov 2024US$509.4bUS$102.4bUS$12.1b22.5x42x5x
Tue, 15 Oct 2024US$499.5bUS$103.0bUS$12.0b27.4x41.7x4.9x
Thu, 12 Sep 2024US$442.8bUS$103.0bUS$12.0b24.5x36.9x4.3x
Sat, 10 Aug 2024US$411.5bUS$102.9bUS$13.7b23.4x30.1x4x
Mon, 08 Jul 2024US$352.4bUS$92.6bUS$12.6b25.2x27.9x3.8x
Wed, 05 Jun 2024US$329.9bUS$92.9bUS$12.7b26.3x26x3.6x
Fri, 03 May 2024US$373.6bUS$104.4bUS$16.1b32.8x23.2x3.6x
Sun, 31 Mar 2024US$404.7bUS$104.8bUS$16.3b31.8x24.9x3.9x
Tue, 27 Feb 2024US$390.0bUS$105.0bUS$16.5b31.9x23.6x3.7x
Thu, 25 Jan 2024US$346.9bUS$96.1bUS$15.1b26.3x22.9x3.6x
Sat, 23 Dec 2023US$329.6bUS$96.1bUS$15.1b25.1x21.8x3.4x
Mon, 20 Nov 2023US$307.6bUS$96.2bUS$14.9b23.1x20.7x3.2x
Wed, 18 Oct 2023US$326.7bUS$94.7bUS$14.6b20.5x22.3x3.4x
Fri, 15 Sep 2023US$338.4bUS$94.7bUS$14.6b29.3x23.1x3.6x
Sun, 13 Aug 2023US$326.4bUS$92.4bUS$13.6b26.4x24.1x3.5x
Tue, 11 Jul 2023US$316.3bUS$91.4bUS$13.5b23.8x23.4x3.5x
Thu, 08 Jun 2023US$307.9bUS$91.4bUS$13.5b23.1x22.8x3.4x
Sat, 06 May 2023US$281.7bUS$89.9bUS$13.5b23.3x20.9x3.1x
Mon, 03 Apr 2023US$322.9bUS$89.0bUS$13.1b26.7x24.6x3.6x
Wed, 01 Mar 2023US$296.8bUS$88.8bUS$13.1b28.6x22.6x3.3x
Price to Earnings Ratio

22.6x


Total Market Cap: US$296.8bTotal Earnings: US$13.1bTotal Revenue: US$88.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Communications Industry Price to Earnings3Y Average 32.3x202420252026
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 41.4x which is higher than its 3-year average PE of 32.3x.
  • The 3-year average PS ratio of 4.5x is lower than the industry's current PS ratio of 6.9x.
Past Earnings Growth
  • The earnings for companies in the Communications industry have grown 11% per year over the last three years.
  • Revenues for these companies have grown 7.0% 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 Market1.04%
Tech1.26%
Communications1.82%
Communications Equipment1.82%
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
CSCO Cisco SystemsUS$79.203.1%
+US$9.2b		23.8%PE28.2x
LITE Lumentum HoldingsUS$667.7718.7%
+US$7.5b		810.4%PE189.5x
CIEN CienaUS$334.9510.2%
+US$4.4b		298.4%PE382.5x
UI UbiquitiUS$750.324.2%
+US$1.8b		134.5%PE51.1x
AAOI Applied OptoelectronicsUS$51.6816.2%
+US$493.0m		91.1%PS8.4x

Latest News

FFIV
US$278.39
F5
7D
1.6%
1Y
-5.8%
ANET
US$132.79
Arista Networks
7D
-6.2%
1Y
35.1%
CIEN
US$334.95
Ciena
7D
10.2%
1Y
298.4%
VISN
US$18.97
Vistance Networks
7D
-1.2%
1Y
278.6%

VISN: Secure Connectivity Focus And Capital Simplification Will Drive Future Outperformance

Analysts have slightly reduced their price target on Vistance Networks from $24.25 to about $24.17. The change reflects updated views on a mix of weaker expected revenue growth alongside a higher projected profit margin and P/E profile.
EXTR
US$14.05
Extreme Networks
7D
-2.8%
1Y
-7.7%
NTCT
US$29.70
NetScout Systems
7D
-0.3%
1Y
25.3%

NTCT: Expanded AI Network Capabilities And Raised Outlook Will Support Bullish Repricing

Analysts have maintained their $35.00 price target for NetScout Systems, citing only modest adjustments in their underlying assumptions for discount rate, revenue growth, profit margin, and future P/E that they believe largely offset one another. What's in the News NetScout extended its Omnis AI Insights solution to communications service providers, aiming to turn raw network data into AI ready data for customer experience, predictive maintenance, and network security use cases, including 5G and other complex network domains (Product related announcement).
AAOI
US$51.68
Applied Optoelectronics
7D
16.2%
1Y
91.1%

AAOI: New Facility And AI Transceiver Demand Will Support Balanced Future Outlook

Analysts have slightly raised their price target on Applied Optoelectronics to $50.00, reflecting updated assumptions for revenue growth of 82.48%, profit margins of 16.73%, and a future P/E of 12.31x. What's in the News Held a groundbreaking ceremony for a new 210,000 square foot manufacturing facility at 1111 Gillingham St. in Sugar Land, Texas, expanding its physical footprint for future production capacity (Key Developments).
LITE
US$667.77
Lumentum Holdings
7D
18.7%
1Y
810.4%
VIAV
US$27.53
Viavi Solutions
7D
4.7%
1Y
137.3%
VSAT
US$46.50
Viasat
7D
-4.8%
1Y
416.7%

VSAT: Elevated Multiple Relies On Uncertain Defense Spinout Execution

Narrative Update on Viasat The updated analyst price target for Viasat has risen from about $10.00 to roughly $26.66, with analysts pointing to sum of the parts valuation work, higher assumed revenue growth, modestly stronger profit margins and a higher future P/E multiple, as well as potential value from possible spinout scenarios. Analyst Commentary Recent research has highlighted both upside scenarios and areas where expectations may prove difficult for Viasat to meet.
CSCO
US$79.20
Cisco Systems
7D
3.1%
1Y
23.8%
UI
US$750.32
Ubiquiti
7D
4.2%
1Y
134.5%
NTGR
US$20.87
NETGEAR
7D
-4.9%
1Y
-20.3%

NTGR: Proposed TP-Link Ban Will Drive Future Demand And Margin Expansion

Analysts have trimmed their price target on NETGEAR from US$39.00 to about US$36.67, citing updated expectations around growth, profitability, and future P/E multiples reflected in recent research such as the Stifel target cut. Analyst Commentary Bullish Takeaways Bullish analysts see the revised price target of about US$36.67 as still allowing for upside if management can execute on growth and profitability initiatives implied in the updated models.
ONDS
US$10.03
Ondas
7D
7.7%
1Y
702.4%

ONDS: Capital Raise And Roboteam Deal Will Support $110m Ambition

Analysts have nudged their blended price target for Ondas higher by a few dollars, citing recent price target increases from several firms following the company's large $1b capital raise, the planned $80m Roboteam acquisition, and stronger reported Q3 results and backlog. Analyst Commentary Bullish Takeaways Bullish analysts see the recent price target increases following the US$1b capital raise as a sign that the new cash position of about US$840m strengthens Ondas' ability to execute on its plans without near term funding pressure.
CMTL
US$5.57
Comtech Telecommunications
7D
-4.9%
1Y
164.0%
KVHI
US$6.01
KVH Industries
7D
-10.4%
1Y
2.9%

Investors Holding Back On KVH Industries, Inc. (NASDAQ:KVHI)

Nov 20
Investors Holding Back On KVH Industries, Inc. (NASDAQ:KVHI)