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U.S. Telecom Sector Analysis

UpdatedDec 06, 2025
DataAggregated Company Financials
Companies501
  • 7D0.8%
  • 3M7.7%
  • 1Y31.6%
  • YTD32.0%

Last week, the Telecom industry hasn't moved much but Meta Platforms is up 3.9% in that time. As for the the longer term, the industry is up 32% over the past 12 months. As for the next few years, earnings are expected to grow by 12% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 06 Dec 2025US$7.8tUS$1.6tUS$281.1b16.4x27.8x4.8x
Mon, 03 Nov 2025US$7.4tUS$1.6tUS$296.2b17.8x25.1x4.5x
Wed, 01 Oct 2025US$7.4tUS$1.6tUS$286.1b19.5x25.9x4.6x
Fri, 29 Aug 2025US$7.1tUS$1.6tUS$287.3b21.4x24.5x4.3x
Sun, 27 Jul 2025US$6.7tUS$1.6tUS$256.9b18.9x26.2x4.2x
Tue, 24 Jun 2025US$6.3tUS$1.6tUS$250.1b17.3x25.3x4x
Thu, 22 May 2025US$6.1tUS$1.6tUS$247.7b17x24.7x3.8x
Sat, 19 Apr 2025US$5.4tUS$1.6tUS$227.2b16x23.6x3.4x
Mon, 17 Mar 2025US$5.9tUS$1.6tUS$228.4b15.5x25.7x3.7x
Wed, 12 Feb 2025US$6.5tUS$1.6tUS$218.8b19.4x29.9x4.1x
Fri, 10 Jan 2025US$6.2tUS$1.6tUS$189.8b19.2x32.4x3.9x
Sun, 08 Dec 2024US$6.1tUS$1.6tUS$189.5b18.7x32.4x3.9x
Tue, 05 Nov 2024US$5.7tUS$1.6tUS$188.5b17.7x30.1x3.6x
Thu, 03 Oct 2024US$5.6tUS$1.5tUS$188.3b18.8x29.9x3.6x
Sat, 31 Aug 2024US$5.3tUS$1.6tUS$189.1b18.8x28.2x3.4x
Mon, 29 Jul 2024US$5.2tUS$1.5tUS$197.1b20.6x26.3x3.4x
Wed, 26 Jun 2024US$5.4tUS$1.5tUS$191.1b16.5x28.5x3.6x
Fri, 24 May 2024US$5.3tUS$1.5tUS$191.3b17.6x27.7x3.5x
Sun, 21 Apr 2024US$5.0tUS$1.5tUS$177.4b17.6x28x3.3x
Tue, 19 Mar 2024US$5.0tUS$1.5tUS$175.5b18x28.4x3.3x
Thu, 15 Feb 2024US$4.8tUS$1.5tUS$172.7b15.9x27.9x3.2x
Sat, 13 Jan 2024US$4.7tUS$1.5tUS$128.1b15.3x36.7x3.1x
Mon, 11 Dec 2023US$4.5tUS$1.5tUS$128.1b16.6x34.8x2.9x
Wed, 08 Nov 2023US$4.3tUS$1.5tUS$122.9b13.7x34.9x2.8x
Fri, 06 Oct 2023US$4.3tUS$1.5tUS$104.7b13.9x40.7x2.8x
Sun, 03 Sep 2023US$4.3tUS$1.5tUS$104.5b14.5x41.4x2.9x
Tue, 01 Aug 2023US$4.4tUS$1.5tUS$110.7b16x39.8x2.9x
Thu, 29 Jun 2023US$4.1tUS$1.5tUS$107.0b17.7x38.5x2.8x
Sat, 27 May 2023US$4.0tUS$1.5tUS$106.6b16.2x37.7x2.7x
Mon, 24 Apr 2023US$3.7tUS$1.5tUS$115.0b16.7x32.4x2.5x
Wed, 22 Mar 2023US$3.7tUS$1.5tUS$115.3b16.9x32.2x2.5x
Fri, 17 Feb 2023US$3.6tUS$1.5tUS$124.9b19.8x28.9x2.4x
Sun, 15 Jan 2023US$3.4tUS$1.5tUS$166.4b17.6x20.7x2.3x
Tue, 13 Dec 2022US$3.3tUS$1.5tUS$166.5b16.1x19.8x2.2x
Price to Earnings Ratio

19.8x


Total Market Cap: US$3.3tTotal Earnings: US$166.5bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 30.2x202320242025
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 30.2x.
  • The 3-year average PS ratio of 3.4x is lower than the industry's current PS ratio of 4.8x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 19% per year over the last three years.
  • Revenues for these companies have grown 2.9% 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 Market0.48%
Telecom0.82%
Interactive Media and Services1.48%
Media1.45%
Telecom Services and Carriers1.17%
Wireless Telecom-0.04%
Entertainment-2.40%
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 17.1%, which is higher than its past year's earnings decline of 4.9% 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 of 2.0x.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 17% over the next 5 years.
  • This is better than its past earnings decline of 4.9% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 7.6% 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
META Meta PlatformsUS$673.423.9%
+US$64.2b		8.0%PE29x
GOOGL AlphabetUS$321.270.3%
+US$13.2b		83.9%PE31.2x
WBD Warner Bros. DiscoveryUS$26.088.7%
+US$5.2b		144.7%PE132.2x
ASTS AST SpaceMobileUS$73.9231.5%
+US$5.0b		191.9%PS1120.3x
RDDT RedditUS$234.118.1%
+US$3.3b		43.8%PE127.1x

Latest News

CNK
US$21.95
Cinemark Holdings
7D
-19.8%
1Y
-37.6%
WBD
US$26.08
Warner Bros. Discovery
7D
8.7%
1Y
144.7%
VZ
US$41.69
Verizon Communications
7D
1.4%
1Y
-1.6%
NFLX
US$100.24
Netflix
7D
-6.8%
1Y
7.2%
FWON.K
US$92.20
Formula One Group
7D
-3.9%
1Y
-1.8%

FWON.K: Rising Media Economics Will Drive Future Premium Earnings Outperformance

Analysts slightly trimmed their fair value estimate for Formula One Group to about $118.07 from $118.67, reflecting more conservative assumptions on long term profit margins. At the same time, Street research, including a recent price target hike to $120, underscores confidence in the franchise and its premium valuation multiple.
BIDU
US$125.66
Baidu
7D
7.5%
1Y
45.4%

BIDU: AI Cloud And Chips Will Drive Future Earnings Multiple Expansion

We raise our Baidu fair value estimate to approximately $152 from $147 as analysts lift price targets. This is based on growing conviction that AI cloud, autonomous driving, and Kunlun chip initiatives will drive faster top line growth and support a modestly higher future earnings multiple, despite some near term margin pressure.
PSKY
US$13.37
Paramount Skydance
7D
-16.6%
1Y
21.6%
META
US$673.42
Meta Platforms
7D
3.9%
1Y
8.0%
TIGO
US$50.20
Millicom International Cellular
7D
-5.4%
1Y
92.9%

TIGO: Future Will Balance Colombia Developments Against Peer Comparisons And Market Optimism

Millicom International Cellular's analyst fair value estimate has increased by $1.00 to $52.35. Analysts point to recent price target hikes and improved long-term profit margin expectations as reasons supporting a higher valuation.
T
US$25.28
AT&T
7D
-2.8%
1Y
5.9%
GOOGL
US$321.27
Alphabet
7D
0.3%
1Y
83.9%

GOOGL: AI And Cloud Initiatives Will Support Balanced Prospects Amid Competitive And Regulatory Shifts

Alphabet's fair value estimate has been raised to $323.70 from $318.24. Analysts point to sustained momentum in search, cloud, and artificial intelligence as drivers of solid revenue growth and margin improvements.
RDDT
US$234.11
Reddit
7D
8.1%
1Y
43.8%

RDDT: Future Performance Will Depend On Sustained Engagement Amidst Competitive Pressures

Reddit's analyst price target has increased modestly, rising from $240.27 to $240.70. Analysts cite strong quarterly earnings, momentum in user engagement and product improvements, and improved profit expectations as key drivers for this upward revision.
SATS
US$82.00
EchoStar
7D
11.9%
1Y
241.7%

SATS: Spectrum Sales Will Drive 5G Deployment and Capital Division Growth

EchoStar's analyst price target has been revised downward from $82.29 to $79.83. This change reflects analysts' assessment of slowing projected revenue growth and a modest increase in the discount rate, despite a slight improvement in profit margin forecasts.
ASTS
US$73.92
AST SpaceMobile
7D
31.5%
1Y
191.9%
SPOT
US$564.93
Spotify Technology
7D
-5.7%
1Y
13.3%
WSHP
US$126.61
WeShop Holdings
7D
-10.0%
1Y
n/a