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U.S. Telecom Sector Analysis
UpdatedSep 07, 2024
DataAggregated Company Financials
Companies444
- 7D-4.8%
- 3M-5.0%
- 1Y23.3%
- YTD15.6%
Over the last 7 days, the Telecom industry has dropped 4.8%, driven by Alphabet declining 7.6%. In contrast, AT&T has gained 5.4%. This takes the industry's 12 month performance to a gain of 23%. As for the next few years, earnings are expected to grow by 15% per annum.
Sector Valuation and Performance
Has the U.S. Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 08 Sep 2024 | US$5.1t | US$1.6t | US$189.2b | 18.8x | 27x | 3.3x |
| Tue, 06 Aug 2024 | US$5.2t | US$1.5t | US$202.6b | 19.2x | 25.8x | 3.4x |
| Thu, 04 Jul 2024 | US$5.6t | US$1.5t | US$191.3b | 18.1x | 29.1x | 3.6x |
| Sat, 01 Jun 2024 | US$5.3t | US$1.5t | US$191.0b | 16.4x | 27.5x | 3.4x |
| Mon, 29 Apr 2024 | US$5.1t | US$1.5t | US$192.7b | 17.9x | 26.5x | 3.4x |
| Wed, 27 Mar 2024 | US$5.1t | US$1.5t | US$175.9b | 19.9x | 28.8x | 3.4x |
| Fri, 23 Feb 2024 | US$4.8t | US$1.5t | US$174.0b | 17.5x | 27.7x | 3.2x |
| Sun, 21 Jan 2024 | US$4.8t | US$1.5t | US$128.1b | 15.2x | 37.2x | 3.1x |
| Tue, 19 Dec 2023 | US$4.6t | US$1.5t | US$127.9b | 17x | 35.7x | 3x |
| Thu, 16 Nov 2023 | US$4.4t | US$1.5t | US$126.4b | 14.3x | 34.8x | 2.9x |
| Sat, 14 Oct 2023 | US$4.3t | US$1.5t | US$104.7b | 14.9x | 41.3x | 2.9x |
| Mon, 11 Sep 2023 | US$4.3t | US$1.5t | US$104.3b | 14.1x | 41.1x | 2.9x |
| Wed, 09 Aug 2023 | US$4.3t | US$1.5t | US$101.8b | 15.3x | 42.6x | 2.9x |
| Fri, 07 Jul 2023 | US$4.1t | US$1.5t | US$107.0b | 17x | 38.7x | 2.8x |
| Sun, 04 Jun 2023 | US$4.1t | US$1.5t | US$107.4b | 14.8x | 37.8x | 2.7x |
| Tue, 02 May 2023 | US$3.8t | US$1.5t | US$113.1b | 16.8x | 33.9x | 2.6x |
| Thu, 30 Mar 2023 | US$3.7t | US$1.5t | US$115.4b | 16.5x | 32x | 2.5x |
| Sat, 25 Feb 2023 | US$3.4t | US$1.5t | US$117.4b | 18.7x | 29.2x | 2.3x |
| Mon, 23 Jan 2023 | US$3.5t | US$1.5t | US$165.9b | 17.8x | 21.3x | 2.3x |
| Wed, 21 Dec 2022 | US$3.1t | US$1.5t | US$166.5b | 17.2x | 18.8x | 2.1x |
| Fri, 18 Nov 2022 | US$3.3t | US$1.5t | US$163.0b | 17.1x | 20.3x | 2.2x |
| Sun, 16 Oct 2022 | US$3.2t | US$1.5t | US$187.6b | 14.5x | 17.1x | 2.2x |
| Tue, 13 Sep 2022 | US$3.8t | US$1.5t | US$187.5b | 16.2x | 20.1x | 2.5x |
| Thu, 11 Aug 2022 | US$4.0t | US$1.5t | US$186.0b | 17.1x | 21.4x | 2.7x |
| Sat, 09 Jul 2022 | US$3.9t | US$1.5t | US$214.3b | 17x | 18.3x | 2.7x |
| Mon, 06 Jun 2022 | US$4.6t | US$1.5t | US$214.2b | 17.7x | 21.3x | 3.1x |
| Wed, 04 May 2022 | US$4.1t | US$1.5t | US$217.8b | 18.4x | 18.8x | 2.8x |
| Fri, 01 Apr 2022 | US$4.8t | US$1.4t | US$224.3b | 19.7x | 21.4x | 3.3x |
| Sun, 27 Feb 2022 | US$4.7t | US$1.4t | US$226.3b | 17.3x | 20.8x | 3.3x |
| Tue, 25 Jan 2022 | US$4.9t | US$1.4t | US$194.7b | 19.2x | 25.3x | 3.5x |
| Thu, 23 Dec 2021 | US$5.5t | US$1.4t | US$194.6b | 20.3x | 28.3x | 3.9x |
| Sat, 20 Nov 2021 | US$5.8t | US$1.4t | US$196.0b | 21.8x | 29.6x | 4.1x |
| Mon, 18 Oct 2021 | US$8.2t | US$1.3t | US$179.6b | 24.7x | 45.9x | 6.1x |
| Wed, 15 Sep 2021 | US$6.0t | US$1.3t | US$177.9b | 20.4x | 33.6x | 4.4x |
Price to Earnings Ratio
33.6x
Current Industry PE
- Investors are relatively neutral on the American Communication Services industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 28.3x.
- The industry is trading close to its 3-year average PS ratio of 3.0x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have grown 2.1% per year over the last three years.
- Revenues for these companies have grown 4.8% 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 Market | -4.43% | |
| Telecom | -4.84% | |
| Telecom Services and Carriers | 1.80% | |
| Media | -2.42% | |
| Wireless Telecom | -2.72% | |
| Entertainment | -3.97% | |
| Interactive Media and Services | -6.18% | |
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 27.0%, which is higher than its past year's earnings growth of 8.7% per year.
- Investors are most pessimistic about the Telecom Services and Carriers industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 27% over the next 5 years.
- This is better than its past earnings growth rate of 8.7% per year.
- In contrast, the Media industry is expected to see its earnings grow by 12% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| T AT&T | US$20.97 | 5.4% +US$7.7b | 45.6% | PE12x | |
| FYBR Frontier Communications Parent | US$35.53 | 23.4% +US$1.7b | 139.6% | PS1.5x | |
| SATS EchoStar | US$22.40 | 20.8% +US$1.0b | 24.2% | PS0.4x | |
| LUMN Lumen Technologies | US$5.84 | 11.2% +US$599.9m | 311.3% | PS0.4x | |
| BILI Bilibili | US$15.12 | 5.1% +US$306.5m | 11.5% | PS1.9x |
