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U.S. Communications Industry Analysis

UpdatedAug 01, 2026
DataAggregated Company Financials
Companies77
  • 7D1.5%
  • 3M3.1%
  • 1Y70.2%
  • YTD42.5%

Arista Networks is up 3.7%, leading the way for the Communications industry, which has gained 1.5%. In the same time, Lumentum Holdings was down 6.4%. This means that the industry has gained 70% over the past year. Looking forward, earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 01 Aug 2026US$948.0bUS$115.4bUS$20.6b31.6x45.9x8.2x
Mon, 29 Jun 2026US$957.9bUS$115.3bUS$20.6b31.3x46.5x8.3x
Wed, 27 May 2026US$1.0tUS$114.8bUS$20.1b33.4x50.4x8.8x
Fri, 24 Apr 2026US$914.4bUS$109.2bUS$18.4b49.4x49.7x8.4x
Sun, 22 Mar 2026US$754.4bUS$109.3bUS$18.4b36.4x41x6.9x
Tue, 17 Feb 2026US$737.5bUS$109.2bUS$18.2b35.5x40.6x6.8x
Thu, 15 Jan 2026US$669.7bUS$106.1bUS$16.7b39.4x40x6.3x
Sat, 13 Dec 2025US$712.4bUS$106.1bUS$16.8b34.4x42.5x6.7x
Mon, 10 Nov 2025US$641.4bUS$104.8bUS$16.3b29.1x39.2x6.1x
Wed, 08 Oct 2025US$659.2bUS$103.3bUS$16.0b29.7x41.1x6.4x
Fri, 05 Sep 2025US$622.4bUS$103.0bUS$16.2b25.7x38.3x6x
Sun, 03 Aug 2025US$570.9bUS$100.7bUS$14.1b26.9x40.5x5.7x
Tue, 01 Jul 2025US$560.0bUS$105.7bUS$14.3b29.1x39.1x5.3x
Thu, 29 May 2025US$528.1bUS$105.5bUS$14.3b25.9x36.9x5x
Sat, 26 Apr 2025US$467.3bUS$102.8bUS$12.4b24.6x37.6x4.5x
Mon, 24 Mar 2025US$494.4bUS$102.8bUS$12.4b26x39.7x4.8x
Wed, 19 Feb 2025US$557.3bUS$104.1bUS$12.1b28x46.2x5.4x
Fri, 17 Jan 2025US$554.9bUS$102.4bUS$11.9b25.4x46.5x5.4x
Sun, 15 Dec 2024US$542.9bUS$102.5bUS$12.1b25.2x45x5.3x
Tue, 12 Nov 2024US$524.2bUS$103.2bUS$13.0b24.9x40.2x5.1x
Thu, 10 Oct 2024US$485.2bUS$103.0bUS$12.0b27.1x40.5x4.7x
Sat, 07 Sep 2024US$429.4bUS$102.9bUS$12.0b24.5x35.8x4.2x
Mon, 05 Aug 2024US$409.0bUS$102.8bUS$13.8b27.4x29.7x4x
Wed, 03 Jul 2024US$352.6bUS$92.6bUS$12.6b25.5x27.9x3.8x
Fri, 31 May 2024US$329.9bUS$92.9bUS$12.7b27.3x26x3.6x
Sun, 28 Apr 2024US$383.1bUS$104.6bUS$16.2b31.7x23.7x3.7x
Tue, 26 Mar 2024US$408.3bUS$104.8bUS$16.3b31.6x25.1x3.9x
Thu, 22 Feb 2024US$383.8bUS$104.9bUS$16.5b29.9x23.3x3.7x
Sat, 20 Jan 2024US$341.0bUS$96.1bUS$15.1b25.6x22.6x3.5x
Mon, 18 Dec 2023US$327.1bUS$96.1bUS$15.1b24.7x21.7x3.4x
Wed, 15 Nov 2023US$322.6bUS$95.2bUS$13.9b23.7x23.2x3.4x
Fri, 13 Oct 2023US$324.9bUS$94.7bUS$14.6b20.8x22.2x3.4x
Sun, 10 Sep 2023US$343.4bUS$94.7bUS$14.6b29.9x23.5x3.6x
Tue, 08 Aug 2023US$324.9bUS$92.3bUS$13.6b26.5x23.9x3.5x
Price to Earnings Ratio

23.9x


Total Market Cap: US$324.9bTotal Earnings: US$13.6bTotal Revenue: US$92.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Communications Industry Price to Earnings3Y Average 35.7x202420252026
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 45.9x which is higher than its 3-year average PE of 35.7x.
  • The 3-year average PS ratio of 5.2x is lower than the industry's current PS ratio of 8.2x.
Past Earnings Growth
  • The earnings for companies in the Communications industry have grown 15% per year over the last three years.
  • Revenues for these companies have grown 7.7% 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 industry?

US Market0.77%
Tech-0.085%
Communications1.49%
Communications Equipment1.49%
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
ANET Arista NetworksUS$180.353.7%
+US$8.0b		53.4%PE61x
CSCO Cisco SystemsUS$115.991.6%
+US$7.2b		72.8%PE38.2x
MSI Motorola SolutionsUS$435.754.3%
+US$3.0b		-0.2%PE34.6x
UI UbiquitiUS$556.525.9%
+US$1.9b		30.3%PE35.8x
VSAT ViasatUS$76.937.3%
+US$805.5m		364.0%PS2.3x

Latest News

VISN
US$11.74
Vistance Networks
7D
-0.5%
1Y
50.7%
New Narrative • Jul 31

VISN trades at $11.83 with roughly $1.88 billion of cash and zero debt after closing the sale of its Ruckus division to Belden on July 1

TLDR: VISN trades at $11.83 with roughly $1.88 billion of cash and zero debt after closing the sale of its Ruckus division to Belden on July 1. That is about ~$8.31 a share in cash, and the board has committed to pushing most of it out the door as a dividend by August 30.
LITE
US$713.94
Lumentum Holdings
7D
-6.4%
1Y
569.2%
CIEN
US$377.05
Ciena
7D
-3.6%
1Y
325.4%
ONDS
US$7.49
Ondas
7D
-4.0%
1Y
240.5%
VSAT
US$76.93
Viasat
7D
7.3%
1Y
364.0%
FFIV
US$402.57
F5
7D
2.6%
1Y
30.9%
AAOI
US$94.32
Applied Optoelectronics
7D
-5.8%
1Y
338.1%
Seeking Alpha • Jul 29

Applied Optoelectronics Expects Record Level Revenue For Q2 With Positive Outlook For FY2026

Summary Applied Optoelectronics will report Q2 financial results next week on August 6th. The company expects another record-setting revenue and has even higher expectations for Q3 and Q4 as it ramps up production capacity. The company's products are in high demand from AI computing and datacenter buildouts. The stock price is up 288% over the last twelve months, although it has fallen more than 60% from its 52-week high. I change my rating from a Buy to a Hold due to sector volatility. Read the full article on Seeking Alpha
CSCO
US$115.99
Cisco Systems
7D
1.6%
1Y
72.8%
Narrative Update • Jul 29

CSCO: AI Infrastructure Demand And Hyperscaler Orders Will Drive Future Returns

Cisco Systems' updated analyst price target of $130, up from $127, reflects analysts' use of a slightly lower discount rate, an adjusted fair value estimate, and an updated view on revenue growth, margins and future P/E, informed by recent research pointing to AI infrastructure demand, networking order strength and large bank CIO survey feedback. Analyst Commentary Recent Street research on Cisco Systems points to a cluster of higher fair value estimates, with many bullish analysts tying their views to AI infrastructure demand, networking order strength and management guidance on future AI related revenue.
ANET
US$180.35
Arista Networks
7D
3.7%
1Y
53.4%
ADTN
US$8.51
ADTRAN Holdings
7D
-13.6%
1Y
-2.9%
Narrative Update • Jul 24

ADTN: Optical Networking Demand And Project Recovery Will Support Future Multiple Expansion

Analysts have trimmed their 12 month price target for ADTRAN Holdings stock to $21 from $23, reflecting a slightly higher discount rate and updated assumptions around revenue growth, profit margins, and future P/E. This follows recent commentary that a customer project delay and higher costs are expected to be temporary, while underlying optical networking demand remains intact.
MSI
US$435.75
Motorola Solutions
7D
4.3%
1Y
-0.2%
EXTR
US$30.14
Extreme Networks
7D
2.2%
1Y
74.5%
Narrative Update • Jul 22

EXTR: AI Networking Execution And Data Center Demand Will Shape Measured Risk Reward

Analysts have nudged the fair value estimate for Extreme Networks higher, lifting the price target from $29.06 to $30.56. They cite Street research that points to stronger order momentum for the Extreme Platform ONE offering and expectations for continued market share gains versus larger networking peers.
VIAV
US$36.95
Viavi Solutions
7D
-6.5%
1Y
278.6%
Narrative Update • Jul 22

VIAV: AI Data Center Demand Will Power Field Instrument Upside

The analyst price target for Viavi Solutions has shifted from $34.73 to $70.00. Analysts attribute this change to higher assumed revenue growth, stronger profit margins, and updated forecasts for Field Instrument demand linked to DCI projects at large networking customers.
NTGR
US$24.16
NETGEAR
7D
-3.1%
1Y
7.4%
UI
US$556.52
Ubiquiti
7D
5.9%
1Y
30.3%
Seeking Alpha • Jul 08

Ubiquiti: Even The Bull Case Struggles To Reach Today's Price

Summary Ubiquiti is rated Sell, as the current valuation exceeds the justified fair value based on forward growth and peer multiples. Enterprise Technology drives 91% of revenue, compounding above 20%, but consensus expects a deceleration to 12.9% growth in FY2027. Despite a debt-free balance sheet and 47% gross margins, UI's price ($525) sits above a defensible fair value range of $400–$490. Thin analyst coverage and single-segment growth concentration heighten valuation risk; upside depends on sustained Enterprise Tech acceleration or Service Provider stabilization. Read the full article on Seeking Alpha
DGII
US$69.72
Digi International
7D
4.1%
1Y
123.9%
Narrative Update • Jul 07

DGII: AI Security And Connectivity Rollout Will Support Balanced Forward Risk Reward

The analyst price target for Digi International has been revised from $68.50 to $72.20, with analysts citing updated expectations for revenue growth, profit margins, and forward P/E assumptions as the primary reasons for the change. Analyst Commentary Recent Street research on Digi International points to a cluster of higher price targets, with analysts highlighting updated expectations for revenue, profitability, and the valuation framework used in their P/E work.