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U.S. Telecom Sector Analysis

UpdatedApr 04, 2026
DataAggregated Company Financials
Companies479
  • 7D6.4%
  • 3M-6.3%
  • 1Y43.1%
  • YTD-6.3%

Over the last 7 days, the Telecom industry has risen 6.4%, driven by gains from Alphabet of 7.8%. In the last 12 months, the industry was up 43%. As for the next few years, earnings are expected to grow by 14% per annum.

Sector Valuation and Performance

Has the U.S. Telecom Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 04 Apr 2026US$7.2tUS$1.7tUS$272.6b15.5x26.6x4.3x
Mon, 02 Mar 2026US$7.7tUS$1.7tUS$274.8b19.7x28x4.6x
Wed, 28 Jan 2026US$7.9tUS$1.6tUS$283.1b16.7x28.1x4.8x
Fri, 26 Dec 2025US$7.8tUS$1.6tUS$282.2b16.2x27.7x4.8x
Sun, 23 Nov 2025US$7.4tUS$1.6tUS$283.1b16.4x26x4.5x
Tue, 21 Oct 2025US$7.5tUS$1.6tUS$286.1b17.8x26.1x4.6x
Thu, 18 Sep 2025US$7.6tUS$1.6tUS$285.9b20.1x26.5x4.7x
Sat, 16 Aug 2025US$7.1tUS$1.6tUS$286.5b20.7x24.6x4.3x
Mon, 14 Jul 2025US$6.6tUS$1.6tUS$250.2b17.8x26.3x4.1x
Wed, 11 Jun 2025US$6.5tUS$1.6tUS$250.0b17.6x25.9x4x
Fri, 09 May 2025US$5.8tUS$1.6tUS$246.6b17x23.6x3.6x
Sun, 06 Apr 2025US$5.2tUS$1.6tUS$227.3b15.3x22.8x3.3x
Tue, 04 Mar 2025US$6.2tUS$1.6tUS$227.7b16.4x27.2x3.9x
Thu, 30 Jan 2025US$6.4tUS$1.6tUS$201.0b17.1x32.1x4.1x
Sat, 28 Dec 2024US$6.2tUS$1.6tUS$189.6b18.5x32.8x4x
Mon, 25 Nov 2024US$5.8tUS$1.6tUS$189.7b20.1x30.4x3.7x
Wed, 23 Oct 2024US$5.6tUS$1.5tUS$183.4b18.2x30.5x3.6x
Fri, 20 Sep 2024US$5.4tUS$1.5tUS$188.1b19x28.6x3.5x
Sun, 18 Aug 2024US$5.3tUS$1.6tUS$189.1b18.8x28.2x3.4x
Tue, 16 Jul 2024US$5.5tUS$1.5tUS$191.2b16.9x28.9x3.6x
Thu, 13 Jun 2024US$5.4tUS$1.5tUS$191.0b16.5x28.3x3.6x
Sat, 11 May 2024US$5.2tUS$1.5tUS$193.7b18.4x26.9x3.4x
Mon, 08 Apr 2024US$5.2tUS$1.5tUS$176.0b19.4x29.3x3.4x
Wed, 06 Mar 2024US$4.8tUS$1.5tUS$173.8b17.4x27.7x3.2x
Fri, 02 Feb 2024US$4.8tUS$1.5tUS$152.6b14.9x31.6x3.1x
Sun, 31 Dec 2023US$4.6tUS$1.5tUS$128.0b15.7x36.2x3x
Tue, 28 Nov 2023US$4.5tUS$1.5tUS$128.3b15.6x35.2x3x
Thu, 26 Oct 2023US$4.1tUS$1.5tUS$108.4b13.7x38.2x2.7x
Sat, 23 Sep 2023US$4.2tUS$1.5tUS$104.7b14.1x40.1x2.8x
Mon, 21 Aug 2023US$4.1tUS$1.5tUS$102.8b14.5x40.3x2.8x
Wed, 19 Jul 2023US$4.3tUS$1.5tUS$106.8b16.3x40x2.9x
Fri, 16 Jun 2023US$4.1tUS$1.5tUS$107.1b17.5x38.5x2.8x
Sun, 14 May 2023US$3.9tUS$1.5tUS$105.2b16.3x36.9x2.6x
Tue, 11 Apr 2023US$3.8tUS$1.5tUS$115.8b16.9x33x2.6x
Price to Earnings Ratio

33x


Total Market Cap: US$3.8tTotal Earnings: US$115.8bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 30.4x202420252026
Current Industry PE
  • Investors are pessimistic on the American Communication Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 26.6x which is lower than its 3-year average PE of 30.4x.
  • The 3-year average PS ratio of 3.6x is lower than the industry's current PS ratio of 4.3x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 33% per year over the last three years.
  • Revenues for these companies have grown 4.2% 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. Telecom sector?

US Market3.46%
Telecom6.40%
Interactive Media and Services8.15%
Entertainment5.22%
Media3.12%
Telecom Services and Carriers-0.47%
Wireless Telecom-3.40%
Industry PE
  • Investors are most optimistic about the Entertainment industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 18.8%, which is higher than its past year's earnings decline of 10.4% per year.
Forecasted Growth
  • Analysts are most optimistic on the Media industry, expecting annual earnings growth of 31% over the next 5 years.
  • This is better than its past earnings decline of 0.02% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 8.3% per year over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
GOOGL AlphabetUS$295.777.8%
+US$259.2b		103.1%PE27.1x
META Meta PlatformsUS$574.469.3%
+US$123.3b		13.8%PE24x
NFLX NetflixUS$98.665.6%
+US$22.1b		15.3%PE37.9x
DIS Walt DisneyUS$96.614.5%
+US$7.4b		15.7%PE14x
RBLX RobloxUS$60.1114.9%
+US$5.5b		13.5%PS8.7x

Latest News

T
US$28.33
AT&T
7D
-2.6%
1Y
6.3%
VZ
US$49.40
Verizon Communications
7D
-1.8%
1Y
14.8%
TME
US$9.17
Tencent Music Entertainment Group
7D
-2.8%
1Y
-29.2%

TME: Core Monetization And K Content Will Support Future Recovery

The analyst price target for Tencent Music Entertainment Group has been revised slightly lower to reflect a modest fair value adjustment to about $28.87. Analysts cited recent downgrades and reduced targets tied to competitive pressure and less clear near term earnings visibility, partly offset by at least one firm highlighting secure monetization and an overdone share selloff.
RBLX
US$60.11
Roblox
7D
14.9%
1Y
13.5%

RBLX: Future Engagement And New Hits Will Support Earnings Potential

Roblox's updated analyst fair value target of $65.00, broadly in line with recent Street moves that trimmed price targets across a wide $70 to $155 range, reflects analysts balancing cautious booking and engagement assumptions with ongoing confidence in the platform's ability to surface new hit experiences. Analyst Commentary Across recent research, the main theme is a reset in expectations as a wide group of firms trim Roblox price targets, even when they keep positive or neutral ratings in place.
CMCSA
US$27.93
Comcast
7D
-1.4%
1Y
-16.3%

CMCSA: Future Returns Will Be Weighed Down By Rising Fiber Headwinds

Analysts have trimmed their fair value estimate for Comcast by about $0.42 to $23.28, reflecting recent cuts to Street price targets and growing caution around competitive fiber headwinds and wireline growth pressure, partly balanced by relatively stable profit margin and P/E assumptions. Analyst Commentary Recent Street research around Comcast reflects a cautious tone, with several bearish analysts trimming price targets and revisiting ratings as competitive and structural pressures come into focus.
META
US$574.46
Meta Platforms
7D
9.3%
1Y
13.8%
DIS
US$96.61
Walt Disney
7D
4.5%
1Y
15.7%

DIS: IP Strength And New Leadership Will Drive Future Repricing Potential

Analysts have trimmed the Walt Disney analyst price target slightly, reflecting modest adjustments to fair value, discount rate, revenue growth and profit margin assumptions after a series of recent target cuts from Deutsche Bank, Wells Fargo, Guggenheim, Rosenblatt, BofA and Citi, partly offset by a new $130 target from Phillip Securities and a fresh upgrade at Raymond James. Analyst Commentary Recent research on Walt Disney shows a mix of optimism around the company’s assets and execution, alongside caution on valuation and near term fundamentals.
NFLX
US$98.66
Netflix
7D
5.6%
1Y
15.3%

NFLX: Higher Pricing And Advertising Will Support Engagement After Warner Bid Exit

Netflix's analyst price targets have recently shifted as analysts factor in updated views on subscriber monetization, 2026 revenue assumptions, and a reset in expected P/E multiples following the decision to walk away from the Warner Bros. Discovery bid, while also incorporating the impact of price increases and advertising trends.
SPOT
US$488.97
Spotify Technology
7D
3.5%
1Y
-2.8%

SPOT: Recurring Price Increases Will Support Future Margin Expansion Potential

Analysts have nudged their price target framework for Spotify higher to $784.59 from $767.84, reflecting slightly firmer assumptions around revenue growth, profit margins, and future P/E in light of a mix of supportive rating actions, incremental price hike expectations, and ongoing debate over AI related risks. Analyst Commentary Recent research on Spotify centers on two themes you should keep in mind: pricing power in Premium subscriptions and how much AI changes the risk profile for the business.
GOOGL
US$295.77
Alphabet
7D
7.8%
1Y
103.1%

GOOGL: Expanding AI Partnerships With Apple And Walmart Will Support Multi Year Re Rating

Alphabet's updated narrative keeps fair value at $443 per share while incorporating Street price target moves such as Wells Fargo's recent lift to $397. This reflects analysts' focus on Gemini traction, AI capacity build out, and broad price target increases across the coverage group.
NXST
US$180.38
Nexstar Media Group
7D
-15.4%
1Y
17.6%
TMUS
US$201.40
T-Mobile US
7D
-4.5%
1Y
-18.8%

TMUS: Sector Leading 2026 Service And EBITDA Outlook Will Drive Future Upside

The analyst price target for T-Mobile US edges up slightly to $268.68 from $268.52, as analysts fine tune assumptions around revenue growth, profit margins and future P/E multiples, while also factoring in recent price target revisions and ratings changes across the Street. Analyst Commentary Recent research updates on T-Mobile US reflect a mix of optimism about the company’s growth profile and some caution around valuation and sector conditions, which together shape the modest upward move in the consensus price target.
FOXA
US$58.62
Fox
7D
-0.8%
1Y
17.9%

FOXA: World Cup And Election Advertising Will Counter Higher NFL Rights Costs

The updated analyst price target for Fox has edged lower by a few dollars, reflecting a mix of reduced targets tied to concerns around upcoming NFL rights costs and recent downgrades, partially offset by fresh upgrades that point to advertising catalysts and sports betting opportunities. Analyst Commentary Recent research on Fox highlights a split view, with some firms cutting ratings and targets around NFL rights risk while others see the recent share pullback as an entry point supported by advertising and sports betting themes.
CARG
US$33.33
CarGurus
7D
-4.8%
1Y
26.8%

CARG: Dealer Data And Buybacks Will Counter AI And 2026 Margin Investment

Analysts have trimmed their average 12 month price target on CarGurus by several dollars to reflect updated 2026 revenue growth and margin guidance, while still pointing to potential benefits from subscription upgrades, new product attach rates, the company's dealer relationships, and its valuation data assets. Analyst Commentary Analysts are reassessing CarGurus around its 2026 outlook, trimming price targets while weighing the trade off between near term margin pressure and potential benefits from product expansion and dealer growth.
SATS
US$128.68
EchoStar
7D
11.7%
1Y
497.7%

SATS: Balanced Outlook Will Weigh Buybacks Against Going Concern Risk

EchoStar's latest analyst price target has been reset to $120.00. Analysts point to a slightly lower discount rate, a smaller projected revenue decline, a modestly reduced profit margin, and a marginally lower assumed future P/E as key drivers of the updated view.
ASTS
US$92.62
AST SpaceMobile
7D
17.7%
1Y
361.5%