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U.S. Telecom Sector Analysis

UpdatedApr 13, 2025
DataAggregated Company Financials
Companies472
  • 7D6.1%
  • 3M-9.3%
  • 1Y8.8%
  • YTD-9.5%

Over the last 7 days, the Telecom industry has risen 6.1%, driven by gains from Alphabet of 7.9%. During this same period, the Newsmax underperformed, falling 49%. This takes the industry's 12 month performance to a gain of 8.8%. As for the next few years, earnings are expected to grow by 13% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 14 Apr 2025US$5.5tUS$1.6tUS$227.2b15.5x24.2x3.5x
Wed, 12 Mar 2025US$5.8tUS$1.6tUS$228.0b16x25.6x3.7x
Fri, 07 Feb 2025US$6.5tUS$1.6tUS$217.1b19.9x30x4.1x
Sun, 05 Jan 2025US$6.1tUS$1.6tUS$189.8b18.8x32.3x3.9x
Tue, 03 Dec 2024US$5.9tUS$1.6tUS$189.7b20.2x31x3.7x
Thu, 31 Oct 2024US$5.7tUS$1.5tUS$185.4b18.3x30.8x3.7x
Sat, 28 Sep 2024US$5.6tUS$1.5tUS$188.3b19.1x29.5x3.6x
Mon, 26 Aug 2024US$5.4tUS$1.6tUS$189.2b18.6x28.5x3.5x
Wed, 24 Jul 2024US$5.4tUS$1.5tUS$191.6b20x28.4x3.6x
Fri, 21 Jun 2024US$5.4tUS$1.5tUS$191.0b16.3x28.2x3.5x
Sun, 19 May 2024US$5.3tUS$1.5tUS$191.8b18.4x27.7x3.5x
Tue, 16 Apr 2024US$5.1tUS$1.5tUS$176.0b18.3x29.1x3.4x
Thu, 14 Mar 2024US$4.9tUS$1.5tUS$175.4b16.9x27.9x3.3x
Sat, 10 Feb 2024US$4.9tUS$1.5tUS$172.4b14.4x28.4x3.3x
Mon, 08 Jan 2024US$4.6tUS$1.5tUS$128.1b15.4x35.7x3x
Wed, 06 Dec 2023US$4.4tUS$1.5tUS$128.1b15.6x34.1x2.9x
Fri, 03 Nov 2023US$4.2tUS$1.5tUS$123.5b12.3x33.8x2.8x
Sun, 01 Oct 2023US$4.2tUS$1.5tUS$104.7b14.1x40.3x2.8x
Tue, 29 Aug 2023US$4.2tUS$1.5tUS$104.0b14.2x40.1x2.8x
Thu, 27 Jul 2023US$4.2tUS$1.5tUS$106.5b15.2x39.2x2.8x
Sat, 24 Jun 2023US$4.1tUS$1.5tUS$107.1b16.9x38.3x2.8x
Mon, 22 May 2023US$4.0tUS$1.5tUS$106.0b17.1x37.6x2.7x
Wed, 19 Apr 2023US$3.8tUS$1.5tUS$115.8b16.7x32.7x2.6x
Fri, 17 Mar 2023US$3.6tUS$1.5tUS$114.5b16.5x31.6x2.4x
Sun, 12 Feb 2023US$3.6tUS$1.5tUS$125.1b19.1x28.5x2.4x
Tue, 10 Jan 2023US$3.3tUS$1.5tUS$166.4b16.9x19.8x2.2x
Thu, 08 Dec 2022US$3.3tUS$1.5tUS$166.5b16.2x19.7x2.2x
Sat, 05 Nov 2022US$3.0tUS$1.5tUS$166.9b15.7x18.2x2x
Mon, 03 Oct 2022US$3.3tUS$1.5tUS$187.6b14.1x17.3x2.2x
Wed, 31 Aug 2022US$3.7tUS$1.5tUS$187.8b16.3x19.6x2.5x
Fri, 29 Jul 2022US$3.8tUS$1.5tUS$209.7b17.1x18.2x2.6x
Sun, 26 Jun 2022US$4.5tUS$1.5tUS$214.0b17.7x21x3.1x
Tue, 24 May 2022US$3.9tUS$1.5tUS$218.3b17.5x18x2.7x
Thu, 21 Apr 2022US$4.4tUS$1.4tUS$224.4b20.1x19.6x3x
Price to Earnings Ratio

19.6x


Total Market Cap: US$4.4tTotal Earnings: US$224.4bTotal Revenue: US$1.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 28.8x202320242025
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 24.2x which is lower than its 3-year average PE of 28.8x.
  • The 3-year average PS ratio of 3.0x is lower than the industry's current PS ratio of 3.5x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 3.1% 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. Telecom sector?

US Market5.42%
Telecom6.07%
Interactive Media and Services7.61%
Entertainment5.67%
Wireless Telecom4.05%
Telecom Services and Carriers1.25%
Media0.35%
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 23.4%, which is lower than the prior year's growth of 27.2% 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 0.42x.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 23% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Media industry is expected to see its earnings grow by 9.4% 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$157.147.9%
+US$140.7b		-0.4%PE19.1x
META Meta PlatformsUS$543.577.7%
+US$98.4b		6.2%PE22.1x
NFLX NetflixUS$918.297.3%
+US$26.7b		47.4%PE45.1x
TMUS T-Mobile USUS$258.674.3%
+US$12.1b		61.6%PE26x
SPOT Spotify TechnologyUS$543.668.0%
+US$8.3b		80.9%PE86.2x
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