Investing IdeasBrowse All StocksMarkets

Have your own idea? Try our Stock Screener

Header cover image

U.S. Telecom Sector Analysis

UpdatedDec 21, 2024
DataAggregated Company Financials
Companies469
  • 7D-2.4%
  • 3M11.8%
  • 1Y38.2%
  • YTD40.1%

Over the last 7 days, the Telecom industry has dropped 2.4%, driven by a pullback from Meta Platforms of 5.7%. Over the past 12 months, the industry was up 38%. Looking forward, earnings are forecast to grow by 15% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 21 Dec 2024US$6.1tUS$1.6tUS$189.6b17.8x32x3.9x
Mon, 18 Nov 2024US$5.8tUS$1.6tUS$189.7b19.4x30.4x3.7x
Wed, 16 Oct 2024US$5.7tUS$1.5tUS$188.2b18.3x30.1x3.7x
Fri, 13 Sep 2024US$5.2tUS$1.5tUS$188.1b18.5x27.4x3.3x
Sun, 11 Aug 2024US$5.3tUS$1.5tUS$189.9b20.2x27.8x3.4x
Tue, 09 Jul 2024US$5.7tUS$1.5tUS$191.3b17.3x29.8x3.7x
Thu, 06 Jun 2024US$5.3tUS$1.5tUS$191.0b15.4x27.8x3.5x
Sat, 04 May 2024US$5.1tUS$1.5tUS$194.4b18.5x26.2x3.3x
Mon, 01 Apr 2024US$5.1tUS$1.5tUS$176.2b18.8x28.7x3.4x
Wed, 28 Feb 2024US$4.8tUS$1.5tUS$174.3b19x27.5x3.2x
Fri, 26 Jan 2024US$4.9tUS$1.5tUS$145.0b14.9x33.6x3.2x
Sun, 24 Dec 2023US$4.6tUS$1.5tUS$127.9b15.6x36.3x3x
Tue, 21 Nov 2023US$4.5tUS$1.5tUS$127.2b16.3x35.1x2.9x
Thu, 19 Oct 2023US$4.3tUS$1.5tUS$104.7b15.2x41.4x2.9x
Sat, 16 Sep 2023US$4.3tUS$1.5tUS$104.4b14.5x41.6x2.9x
Mon, 14 Aug 2023US$4.3tUS$1.5tUS$102.5b15.6x41.7x2.9x
Wed, 12 Jul 2023US$4.1tUS$1.5tUS$106.8b16.6x38.8x2.8x
Fri, 09 Jun 2023US$4.1tUS$1.5tUS$107.1b15.8x37.8x2.7x
Sun, 07 May 2023US$3.7tUS$1.5tUS$107.3b15.9x34.9x2.5x
Tue, 04 Apr 2023US$3.8tUS$1.5tUS$115.4b16.7x32.9x2.6x
Thu, 02 Mar 2023US$3.4tUS$1.5tUS$115.6b18.7x29.6x2.3x
Sat, 28 Jan 2023US$3.6tUS$1.5tUS$141.3b19x25.8x2.5x
Mon, 26 Dec 2022US$3.2tUS$1.5tUS$166.4b16.1x19x2.1x
Wed, 23 Nov 2022US$3.3tUS$1.5tUS$165.7b17.9x19.9x2.2x
Fri, 21 Oct 2022US$3.3tUS$1.5tUS$187.5b15x17.8x2.3x
Sun, 18 Sep 2022US$3.5tUS$1.5tUS$187.6b15.4x18.7x2.4x
Tue, 16 Aug 2022US$4.1tUS$1.5tUS$186.7b18x21.8x2.7x
Thu, 14 Jul 2022US$3.7tUS$1.5tUS$214.3b16.2x17.5x2.6x
Sat, 11 Jun 2022US$4.4tUS$1.5tUS$214.0b17.3x20.6x3x
Mon, 09 May 2022US$4.0tUS$1.5tUS$218.8b17.1x18.2x2.7x
Wed, 06 Apr 2022US$4.8tUS$1.4tUS$223.9b19.5x21.5x3.4x
Fri, 04 Mar 2022US$4.6tUS$1.4tUS$225.3b17.1x20.5x3.2x
Sun, 30 Jan 2022US$4.9tUS$1.4tUS$213.4b19.3x23.1x3.5x
Tue, 28 Dec 2021US$5.6tUS$1.4tUS$194.6b20.3x28.7x4x
Price to Earnings Ratio

28.7x


Total Market Cap: US$5.6tTotal Earnings: US$194.6bTotal Revenue: US$1.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 28.2x202220232024
Current Industry PE
  • Investors are optimistic on the American Communication Services industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 32.0x which is higher than its 3-year average PE of 28.2x.
  • The 3-year average PS ratio of 3.0x is lower than the industry's current PS ratio of 3.9x.
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 4.0% 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 Market-2.39%
Telecom-2.39%
Interactive Media and Services-1.91%
Entertainment-2.13%
Media-4.30%
Telecom Services and Carriers-4.34%
Wireless Telecom-4.77%
Industry PE
  • Investors are most optimistic about the Entertainment industry which is trading above its 3-year average PE ratio of 258x.
    • Analysts are expecting annual earnings growth of 27.7%, which is higher than its past year's earnings decline of 13.9% per year.
  • Investors are most pessimistic about the Wireless Telecom industry, which is trading below its 3-year average of 41.6x.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 28% over the next 5 years.
  • This is better than its past earnings decline of 14% per year.
  • In contrast, the Interactive Media and Services 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?

CompanyLast Price7D1YValuation
GOOGL AlphabetUS$191.410.8%
+US$19.5b		35.3%PE24.9x
FOXA FoxUS$49.535.2%
+US$1.1b		66.2%PE11.8x
MTCH Match GroupUS$33.767.3%
+US$580.0m		-4.1%PE13.6x
RBLX RobloxUS$60.110.9%
+US$334.7m		30.8%PS11.7x
GRND GrindrUS$17.3110.0%
+US$277.3m		104.6%PS9.6x
Simply Wall St™
Simply Wall Street Pty Ltd
Level 7, 320 Pitt Street, Sydney
Download on the App StoreGet it on Google Play
Popular Markets
USAUUKINCAZA
About UsCareersPlans & PricingLogin
Help CenterLatest CoveragePodcastsAffiliate ProgramBusiness & EnterpriseWhat's New
Financial Services GuideTerms and ConditionsPrivacy Policy
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

SNAP

US$11.40

Snap

7D

0.8%

1Y

-33.1%

CMCSA

US$38.22

Comcast

7D

-4.3%

1Y

-13.1%

RBLX

US$60.11

Roblox

7D

0.9%

1Y

30.8%

TMUS

US$220.31

T-Mobile US

7D

-5.0%

1Y

41.5%

T

US$22.75

AT&T

7D

-3.7%

1Y

37.5%

SPOT

US$460.88

Spotify Technology

7D

-4.6%

1Y

143.1%

Spotify: My Top Investment Pick For 2025

Dec 15

META

US$585.25

Meta Platforms

7D

-5.7%

1Y

65.6%

Meta's Rally Isn't Over: Why It Remains A Buy

Dec 15

NFLX

US$909.05

Netflix

7D

-1.1%

1Y

86.8%

GOOGL

US$191.41

Alphabet

7D

0.8%

1Y

35.3%

FOXA

US$49.53

Fox

7D

5.2%

1Y

66.2%

The Market Doesn't Like What It Sees From Fox Corporation's (NASDAQ:FOXA) Earnings Yet

Dec 12
The Market Doesn't Like What It Sees From Fox Corporation's (NASDAQ:FOXA) Earnings Yet

MTCH

US$33.76

Match Group

7D

7.3%

1Y

-4.1%

Match: There May Be Hope With A Rebound In Tinder Payers And A New Capital Returns Plan (Rating Upgrade)

Dec 12

VZ

US$39.93

Verizon Communications

7D

-5.6%

1Y

6.5%

VEON

US$39.04

VEON

7D

7.0%

1Y

96.1%

CHTR

US$351.50

Charter Communications

7D

-7.4%

1Y

-8.0%

When Should You Buy Charter Communications, Inc. (NASDAQ:CHTR)?

Nov 25
When Should You Buy Charter Communications, Inc. (NASDAQ:CHTR)?

GRND

US$17.31

Grindr

7D

10.0%

1Y

104.6%

DISH

US$5.77

DISH Network

7D

8.9%

1Y

-61.1%