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U.S. Telecom Sector Analysis

UpdatedMar 20, 2026
DataAggregated Company Financials
Companies486
  • 7D-1.1%
  • 3M-2.8%
  • 1Y31.1%
  • YTD-4.0%

Over the last 7 days, the Telecom industry has dropped 2.1%, driven by a pullback from Meta Platforms of 4.9%. Over the past 12 months, the industry was up 31%. 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
Fri, 20 Mar 2026US$7.5tUS$1.7tUS$271.8b18.8x27.5x4.5x
Sun, 15 Feb 2026US$7.5tUS$1.7tUS$282.6b16.3x26.6x4.5x
Tue, 13 Jan 2026US$8.0tUS$1.6tUS$282.3b16.4x28.2x4.8x
Thu, 11 Dec 2025US$7.8tUS$1.6tUS$281.1b16.3x27.8x4.8x
Sat, 08 Nov 2025US$7.3tUS$1.6tUS$285.5b17.6x25.5x4.4x
Mon, 06 Oct 2025US$7.3tUS$1.6tUS$286.1b18.9x25.5x4.5x
Wed, 03 Sep 2025US$7.0tUS$1.6tUS$286.1b21.8x24.4x4.3x
Fri, 01 Aug 2025US$6.7tUS$1.6tUS$261.2b19.1x25.6x4.1x
Sun, 29 Jun 2025US$6.6tUS$1.6tUS$250.2b17.5x26.5x4.1x
Tue, 27 May 2025US$6.1tUS$1.6tUS$248.0b16.9x24.6x3.8x
Thu, 24 Apr 2025US$5.5tUS$1.6tUS$229.1b16.2x24x3.5x
Sat, 22 Mar 2025US$5.8tUS$1.6tUS$228.1b17.6x25.5x3.7x
Mon, 17 Feb 2025US$6.6tUS$1.6tUS$218.0b19.9x30.3x4.2x
Wed, 15 Jan 2025US$6.0tUS$1.6tUS$189.6b19.6x31.7x3.8x
Fri, 13 Dec 2024US$6.4tUS$1.6tUS$189.5b18.7x33.6x4x
Sun, 10 Nov 2024US$5.9tUS$1.6tUS$188.8b18.9x31.2x3.8x
Tue, 08 Oct 2024US$5.7tUS$1.5tUS$188.2b18.3x30.2x3.7x
Thu, 05 Sep 2024US$5.2tUS$1.6tUS$189.1b18.8x27.7x3.4x
Sat, 03 Aug 2024US$5.3tUS$1.5tUS$202.5b19.4x26.4x3.5x
Mon, 01 Jul 2024US$5.5tUS$1.5tUS$191.3b16x28.8x3.6x
Wed, 29 May 2024US$5.3tUS$1.5tUS$191.0b16.8x27.8x3.5x
Fri, 26 Apr 2024US$4.9tUS$1.5tUS$183.4b17.8x26.8x3.2x
Sun, 24 Mar 2024US$5.1tUS$1.5tUS$175.9b18x28.9x3.4x
Tue, 20 Feb 2024US$4.8tUS$1.5tUS$174.0b16x27.7x3.2x
Thu, 18 Jan 2024US$4.6tUS$1.5tUS$128.1b15.1x36.2x3.1x
Sat, 16 Dec 2023US$4.6tUS$1.5tUS$128.0b16.7x35.8x3x
Mon, 13 Nov 2023US$4.4tUS$1.5tUS$125.7b13.1x34.6x2.9x
Wed, 11 Oct 2023US$4.4tUS$1.5tUS$104.7b14.3x42x2.9x
Fri, 08 Sep 2023US$4.3tUS$1.5tUS$104.4b14.7x41.1x2.9x
Sun, 06 Aug 2023US$4.3tUS$1.5tUS$103.2b14.9x41.5x2.9x
Tue, 04 Jul 2023US$4.1tUS$1.5tUS$107.0b17.2x38.8x2.8x
Thu, 01 Jun 2023US$4.0tUS$1.5tUS$107.2b14x37.5x2.7x
Sat, 29 Apr 2023US$3.8tUS$1.5tUS$113.1b16.4x33.9x2.6x
Mon, 27 Mar 2023US$3.7tUS$1.5tUS$115.3b16.4x32.2x2.5x
Price to Earnings Ratio

32.2x


Total Market Cap: US$3.7tTotal Earnings: US$115.3bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 30.5x202420252026
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 30.5x.
  • The 3-year average PS ratio of 3.6x is lower than the industry's current PS ratio of 4.5x.
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 Market-0.66%
Telecom-1.11%
Telecom Services and Carriers-0.51%
Interactive Media and Services-0.70%
Media-1.86%
Entertainment-2.92%
Wireless Telecom-3.06%
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 19.4%, which is higher than its past year's earnings decline of 4.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Media industry, expecting annual earnings growth of 29% over the next 5 years.
  • This is better than its past earnings decline of 2.3% 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$307.131.2%
+US$43.3b		88.7%PE28.1x
T AT&TUS$27.741.3%
+US$2.5b		3.5%PE8.9x
ASTS AST SpaceMobileUS$94.099.0%
+US$2.3b		266.0%PS388.3x
RDDT RedditUS$138.124.4%
+US$1.1b		27.0%PE49.8x
RBLX RobloxUS$57.522.2%
+US$864.6m		-0.7%PS8.3x

Latest News

TMUS
US$206.59
T-Mobile US
7D
-3.6%
1Y
-19.6%
TME
US$10.29
Tencent Music Entertainment Group
7D
-24.8%
1Y
-27.9%
RBLX
US$57.52
Roblox
7D
2.2%
1Y
-0.7%

RBLX: Engagement Trends And Content Cycles Will Shape Future Earnings Potential

The analyst price target for Roblox has shifted slightly lower, from $67 to $65, as analysts factor in softer concurrent user trends relative to booking guidance and rising competitive and content headwinds, even while acknowledging ongoing hit experiences on the platform. Analyst Commentary Recent research on Roblox reflects a more cautious tone, with several firms trimming price targets and reassessing growth assumptions in light of softer concurrent user trends, upcoming content competition, and challenging comparisons in future years.
CMCSA
US$28.98
Comcast
7D
-3.9%
1Y
-20.6%

CMCSA: Fiber Headwinds And Versant Spin Off Will Reframe Earnings Power

Analysts have trimmed their fair value estimate for Comcast to $33.01 from $33.93, reflecting lower assumed revenue growth and profit margins, a slightly higher discount rate, and recent Street price target cuts tied to fiber competition and the Versant spin off, partially offset by a few modest target increases. Analyst Commentary Street research on Comcast has become more divided, with several price target cuts and downgrades offset by a smaller number of upgrades and modest target increases.
RDDT
US$138.12
Reddit
7D
4.4%
1Y
27.0%
NFLX
US$91.74
Netflix
7D
-3.7%
1Y
-4.5%

NFLX: Walking From Warner Deal Will Refocus On Content And Efficiency

Analysts have modestly increased the blended price target for Netflix by about $2 to reflect updated views on content investment, operating efficiency and valuation multiples after the company opted out of a Warner Bros. Discovery deal.
SPOT
US$482.52
Spotify Technology
7D
-5.3%
1Y
-18.8%

SPOT: Recurring Price Hikes And Firmer Margins Will Support Revaluation Potential

Spotify's analyst fair value estimate has been adjusted from $889.24 to $767.84 as analysts factor in slightly higher discount rates and a lower future P/E, partly offset by firmer margin expectations and views that AI related risks to the platform and its pricing power are limited. Analyst Commentary Recent research on Spotify highlights a split view on AI risk and pricing power, but there is a clear cluster of bullish analysts who still see upside in the story despite a period of target cuts across the Street.
BIDU
US$119.01
Baidu
7D
-3.4%
1Y
26.2%

BIDU: AI Transition Will Likely Lag Persistent Weakness In Legacy Advertising

Analysts have nudged Baidu's fair value estimate higher to about $110 as they update price targets, citing the ongoing shift toward AI driven businesses, including chips and related products, while still accounting for pressure in the legacy online marketing segment. Analyst Commentary Recent Street research on Baidu reflects a mix of optimism around its AI pivot and caution around execution risk and the health of its legacy businesses.
NYT
US$81.28
New York Times
7D
4.1%
1Y
67.2%

NYT: Elevated Revenue And Margin Assumptions Will Restrain Future Share Returns

Analysts have lifted their average price targets on The New York Times by mid single digit amounts in recent research, pointing to updated assumptions for revenue growth, profit margins, and a slightly lower future P/E multiple as key drivers of the new $70.75 fair value estimate. Analyst Commentary Recent Street research has focused on how updated revenue and margin assumptions feed into a higher fair value for The New York Times, with several firms lifting price targets by low to mid single digit dollar amounts.
GOOGL
US$307.13
Alphabet
7D
1.2%
1Y
88.7%

GOOGL: AI Partnerships And Compute Capacity Will Support Long Term Upside

Analysts have slightly increased their price target for Alphabet to about $377, reflecting broad Street support for the company's position in AI data, distribution, and compute, as well as recent partnership momentum around Gemini with major technology and retail platforms. Analyst Commentary Recent research points to a clear skew toward optimism on Alphabet, especially around its AI positioning, cloud trajectory, and a growing set of high profile partnerships.
GSAT
US$61.53
Globalstar
7D
7.7%
1Y
184.6%

GSAT: De Risked Satellite Services And Spectrum Optionality Will Drive Upside Potential

Analysts have lifted Globalstar's price target to $71 from $66, citing a combination of a "de-risked" Apple supported satellite services business, underused terrestrial spectrum assets, and improved government services expectations related to XCOM Radio Access Network's commercial progress. Analyst Commentary Analysts lifting the price target to $71 frame Globalstar as a hybrid story, combining its satellite services with underused terrestrial spectrum and potential government work tied to XCOM Radio Access Network.
T
US$27.74
AT&T
7D
1.3%
1Y
3.5%

T: Future Returns Will Be Pressured By Rich P/E Versus Fundamentals

Analysts have raised AT&T's price target to $25.11 from $23.24, reflecting updated assumptions that include slightly higher revenue growth, a modest change in the discount rate, a small adjustment to profit margin expectations, and a higher future P/E multiple. What's in the News AT&T introduced updated Unlimited Your Way wireless plans, including the new AT&T Value 2.0 entry level option, offering mix and match flexibility, more high speed data, and features such as ActiveArmor and unlimited talk, text, and data across the U.S., Canada, and Mexico (Product related announcement).
META
US$606.70
Meta Platforms
7D
-4.9%
1Y
3.5%
VZ
US$49.48
Verizon Communications
7D
-2.3%
1Y
13.1%

VZ: Fair Value View Will Reflect Cost Cuts And Execution Risks

Narrative Update: Verizon Communications The analyst price target for Verizon Communications edges higher to approximately $50.00, up by a small fraction. Analysts point to firming trends in subscriber additions, cost efficiencies and broadband growth, which are reflected in a slightly higher fair value estimate and a modestly higher assumed future P/E of about 12x.
WBD
US$27.63
Warner Bros. Discovery
7D
0.7%
1Y
159.4%
ASTS
US$94.09
AST SpaceMobile
7D
9.0%
1Y
266.0%