Narrative Update • Aug 21
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- 7D-5.8%
- 3M-4.5%
- 1Y61.8%
- YTD43.4%
Over the last 7 days, the Communications industry has dropped 5.8%, driven by Arista Networks declining 6.8%. On the other hand Motorola Solutions is actually up 5.3%. This takes the industry's 12 month performance to a gain of 62%. As for the next few years, earnings are expected to grow by 24% per annum.
Industry Valuation and Performance
Has the U.S. Communications Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 25 Aug 2026 | US$1.0t | US$120.3b | US$14.8b | 31.2x | 67.5x | 8.3x |
| Thu, 23 Jul 2026 | US$965.4b | US$115.3b | US$20.6b | 32x | 46.8x | 8.4x |
| Sat, 20 Jun 2026 | US$996.8b | US$115.3b | US$20.6b | 31.3x | 48.4x | 8.6x |
| Mon, 18 May 2026 | US$981.6b | US$114.8b | US$20.2b | 30.9x | 48.6x | 8.6x |
| Wed, 15 Apr 2026 | US$844.9b | US$109.2b | US$18.4b | 45.7x | 46x | 7.7x |
| Fri, 13 Mar 2026 | US$762.0b | US$109.3b | US$18.4b | 41.9x | 41.5x | 7x |
| Sun, 08 Feb 2026 | US$745.5b | US$106.8b | US$17.2b | 32.8x | 43.3x | 7x |
| Tue, 06 Jan 2026 | US$676.3b | US$106.1b | US$16.7b | 38.8x | 40.4x | 6.4x |
| Thu, 04 Dec 2025 | US$658.7b | US$105.8b | US$16.6b | 31.5x | 39.7x | 6.2x |
| Sat, 01 Nov 2025 | US$692.9b | US$103.8b | US$16.0b | 32x | 43.4x | 6.7x |
| Mon, 29 Sep 2025 | US$638.4b | US$103.3b | US$16.0b | 30.2x | 39.9x | 6.2x |
| Wed, 27 Aug 2025 | US$606.4b | US$103.1b | US$16.2b | 25.9x | 37.3x | 5.9x |
| Fri, 25 Jul 2025 | US$570.2b | US$100.6b | US$14.0b | 28.6x | 40.7x | 5.7x |
| Sun, 22 Jun 2025 | US$529.4b | US$105.7b | US$14.3b | 26.8x | 36.9x | 5x |
| Tue, 20 May 2025 | US$536.0b | US$105.5b | US$14.5b | 26x | 37x | 5.1x |
| Thu, 17 Apr 2025 | US$466.0b | US$102.8b | US$12.4b | 24.1x | 37.5x | 4.5x |
| Sat, 15 Mar 2025 | US$483.2b | US$103.1b | US$12.4b | 25.4x | 39.1x | 4.7x |
| Mon, 10 Feb 2025 | US$572.3b | US$102.7b | US$12.3b | 25.6x | 46.6x | 5.6x |
| Wed, 08 Jan 2025 | US$549.6b | US$102.4b | US$12.1b | 24.6x | 45.4x | 5.4x |
| Fri, 06 Dec 2024 | US$539.6b | US$102.5b | US$12.1b | 24.8x | 44.5x | 5.3x |
| Sun, 03 Nov 2024 | US$496.3b | US$102.8b | US$12.1b | 23.8x | 41.1x | 4.8x |
| Tue, 01 Oct 2024 | US$477.1b | US$103.0b | US$12.0b | 25.7x | 39.8x | 4.6x |
| Thu, 29 Aug 2024 | US$452.0b | US$103.1b | US$12.0b | 26.5x | 37.8x | 4.4x |
| Sat, 27 Jul 2024 | US$340.3b | US$92.3b | US$12.2b | 27.6x | 27.9x | 3.7x |
| Mon, 24 Jun 2024 | US$345.1b | US$92.7b | US$12.6b | 26.5x | 27.3x | 3.7x |
| Wed, 22 May 2024 | US$340.7b | US$92.4b | US$12.7b | 27.3x | 26.8x | 3.7x |
| Fri, 19 Apr 2024 | US$379.9b | US$104.8b | US$16.3b | 30.2x | 23.4x | 3.6x |
| Sun, 17 Mar 2024 | US$393.9b | US$104.8b | US$16.3b | 31.7x | 24.1x | 3.8x |
| Tue, 13 Feb 2024 | US$398.3b | US$105.5b | US$16.5b | 29.7x | 24.1x | 3.8x |
| Thu, 11 Jan 2024 | US$333.1b | US$96.1b | US$15.1b | 25.3x | 22x | 3.5x |
| Sat, 09 Dec 2023 | US$312.1b | US$96.1b | US$15.1b | 25.2x | 20.7x | 3.2x |
| Mon, 06 Nov 2023 | US$327.1b | US$94.9b | US$14.7b | 23.1x | 22.2x | 3.4x |
| Wed, 04 Oct 2023 | US$329.2b | US$94.7b | US$14.6b | 28.5x | 22.5x | 3.5x |
| Fri, 01 Sep 2023 | US$349.3b | US$94.7b | US$14.6b | 31.1x | 23.9x | 3.7x |
Price to Earnings Ratio
23.9x
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 67.5x which is higher than its 3-year average PE of 36.4x.
- The 3-year average PS ratio of 5.3x is lower than the industry's current PS ratio of 8.3x.
Past Earnings Growth
- The earnings for companies in the Communications industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 8.3% 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 and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the U.S. Tech industry?
| US Market | -1.55% | |
| Tech | -4.91% | |
| Communications | -5.75% | |
| Communications Equipment | -5.75% | |
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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| MSI Motorola Solutions | US$481.52 | 5.3% +US$4.0b | 4.5% | PE37.3x | |
| CALX Calix | US$39.80 | 0.7% +US$17.6m | -32.3% | PE49x | |
| CMTL Comtech Telecommunications | US$1.77 | 6.0% +US$3.0m | -12.8% | PS0.1x | |
| CLRO ClearOne | US$5.51 | 11.5% +US$1.5m | 27.3% | PE-3.4x | |
| NTIP Network-1 Technologies | US$1.56 | 2.3% +US$800.2k | 9.5% | PB0.9x |
