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U.S. Telecom Sector Analysis

UpdatedJan 21, 2026
DataAggregated Company Financials
Companies503
  • 7D-3.6%
  • 3M3.9%
  • 1Y23.9%
  • YTD-1.5%

Over the last 7 days, the Telecom industry has dropped 3.6%, driven by a pullback from Alphabet of 4.2%. Meanwhile, AST SpaceMobile actually outperformed within the industry, gaining 21% in the last week. This takes the industry's 12 month performance to a gain of 24%. Earnings are forecast to grow by 13% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 22 Jan 2026US$7.8tUS$1.7tUS$282.1b15.9x27.7x4.7x
Sat, 20 Dec 2025US$7.7tUS$1.6tUS$280.9b16.4x27.3x4.7x
Mon, 17 Nov 2025US$7.2tUS$1.6tUS$285.5b17x25.3x4.4x
Wed, 15 Oct 2025US$7.3tUS$1.6tUS$286.1b17.8x25.4x4.5x
Fri, 12 Sep 2025US$7.4tUS$1.6tUS$286.1b21x25.7x4.6x
Sun, 10 Aug 2025US$6.9tUS$1.6tUS$285.6b20.7x24.2x4.3x
Tue, 08 Jul 2025US$6.6tUS$1.6tUS$250.2b17.8x26.6x4.1x
Thu, 05 Jun 2025US$6.2tUS$1.6tUS$249.9b17.5x24.9x3.9x
Sat, 03 May 2025US$5.8tUS$1.6tUS$245.5b16.9x23.6x3.6x
Mon, 31 Mar 2025US$5.7tUS$1.6tUS$227.4b17.3x25x3.6x
Wed, 26 Feb 2025US$6.3tUS$1.6tUS$225.2b17.8x28x4x
Fri, 24 Jan 2025US$6.3tUS$1.6tUS$190.6b18.5x33x4x
Sun, 22 Dec 2024US$6.1tUS$1.6tUS$189.6b17.8x32.2x3.9x
Tue, 19 Nov 2024US$5.8tUS$1.6tUS$189.7b19.7x30.4x3.7x
Thu, 17 Oct 2024US$5.6tUS$1.5tUS$188.2b18.5x30x3.7x
Sat, 14 Sep 2024US$5.3tUS$1.5tUS$188.1b18.7x27.9x3.4x
Mon, 12 Aug 2024US$5.3tUS$1.5tUS$189.8b20.2x27.8x3.4x
Wed, 10 Jul 2024US$5.6tUS$1.5tUS$190.9b17.3x29.5x3.7x
Fri, 07 Jun 2024US$5.4tUS$1.5tUS$191.0b15.4x28.3x3.6x
Sun, 05 May 2024US$5.1tUS$1.5tUS$194.6b18.5x26.3x3.4x
Tue, 02 Apr 2024US$5.1tUS$1.5tUS$176.1b19.2x28.7x3.4x
Thu, 29 Feb 2024US$4.9tUS$1.5tUS$174.2b18.9x27.9x3.3x
Sat, 27 Jan 2024US$5.0tUS$1.5tUS$145.5b15.1x34.1x3.3x
Mon, 25 Dec 2023US$4.6tUS$1.5tUS$127.9b15.6x36.3x3x
Wed, 22 Nov 2023US$4.5tUS$1.5tUS$127.1b16.3x35.1x2.9x
Fri, 20 Oct 2023US$4.3tUS$1.5tUS$102.5b15.1x42.3x2.9x
Sun, 17 Sep 2023US$4.3tUS$1.5tUS$104.4b14.1x41.6x2.9x
Tue, 15 Aug 2023US$4.3tUS$1.5tUS$102.5b14.9x42.1x2.9x
Thu, 13 Jul 2023US$4.2tUS$1.5tUS$106.8b16.4x39.5x2.8x
Sat, 10 Jun 2023US$4.1tUS$1.5tUS$107.1b15.8x37.9x2.7x
Mon, 08 May 2023US$3.7tUS$1.5tUS$107.3b15.9x34.9x2.5x
Wed, 05 Apr 2023US$3.8tUS$1.5tUS$115.4b16.7x32.9x2.6x
Fri, 03 Mar 2023US$3.5tUS$1.5tUS$114.2b19x30.4x2.3x
Sun, 29 Jan 2023US$3.6tUS$1.5tUS$141.3b19x25.8x2.5x
Price to Earnings Ratio

25.8x


Total Market Cap: US$3.6tTotal Earnings: US$141.3bTotal 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 3.5x is lower than the industry's current PS ratio of 4.7x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 26% per year over the last three years.
  • Revenues for these companies have grown 3.9% 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 Market-2.00%
Telecom-3.56%
Telecom Services and Carriers1.32%
Wireless Telecom-2.22%
Entertainment-2.60%
Media-2.72%
Interactive Media and Services-4.24%
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 17.3%, which is higher than its past year's earnings growth of 0.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Media industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 7.7% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 2.1% 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
ASTS AST SpaceMobileUS$112.4421.3%
+US$5.5b		386.8%PS1704x
TIGO Millicom International CellularUS$58.2814.3%
+US$1.2b		112.3%PE8.9x
T AT&TUS$23.450.6%
+US$1.1b		4.3%PE7.5x
AHMA Ambitions Enterprise ManagementUS$24.5198.6%
+US$361.8m		n/aPE624.5x
WSHP WeShop HoldingsUS$71.0027.5%
+US$358.8m		n/aPS1528.8x

Latest News

VZ
US$39.08
Verizon Communications
7D
0.2%
1Y
0.2%
RBLX
US$78.84
Roblox
7D
-7.0%
1Y
19.3%
ASTS
US$112.44
AST SpaceMobile
7D
21.3%
1Y
386.8%
NFLX
US$87.26
Netflix
7D
-1.5%
1Y
-8.5%

NFLX: Future Returns Will Balance Warner Bid Risk And Advertising Progress

Analysts have trimmed their Netflix price targets by around $25 to $30 per share, reflecting a lower assumed future P/E multiple, even as they point to steady revenue growth expectations, resilient profit margins, and ongoing progress in advertising and content monetization. Analyst Commentary Recent Street research on Netflix highlights a mixed backdrop.
SPOT
US$511.33
Spotify Technology
7D
-4.4%
1Y
4.9%

SPOT: Future Price Increases And Margin Goals Will Drive Rerating Potential

Analysts have trimmed their Spotify Technology price targets, with our fair value estimate moving from US$913.70 to US$889.24. They are factoring in slightly softer margin assumptions, modestly lower growth estimates, and a higher future P/E, while still referencing potential benefits from pricing changes and longer term margin goals.
GOOGL
US$322.00
Alphabet
7D
-4.2%
1Y
62.6%

GOOGL: AI Partnerships Are Expected To Drive Multi Year Re Rating

Analysts have raised their implied fair value for Alphabet from about $291 to around $415 per share. This reflects higher assumed revenue growth, profit margins and a richer future P/E multiple as recent research points to growing confidence in Gemini driven partnerships and Google Cloud.
T
US$23.45
AT&T
7D
0.6%
1Y
4.3%

T: Future 5G Expansion And Fiber Services Will Support Upside Potential

Analysts now estimate AT&T's fair value at about US$29.48, down from roughly US$30.99, citing updated assumptions around discount rates, slightly different revenue growth expectations, modestly adjusted profit margin forecasts, and a lower future P/E estimate. What's in the News Acer filed a patent infringement lawsuit against AT&T in the U.S. District Court for the Eastern District of Texas, seeking compensation related to six U.S. patents after licensing talks did not produce an agreement (Lawsuits & Legal Issues).
TIGO
US$58.28
Millicom International Cellular
7D
14.3%
1Y
112.3%

TIGO: Elevated Expectations Around Telefonica Chile Bid Will Likely Pressure Future Returns

Analysts have raised their fair value estimate for Millicom International Cellular to US$46.80 from US$36.00, citing updated assumptions on revenue growth, profit margins and a lower forward P/E in light of recent positive research and higher Street price targets. Analyst Commentary Recent research coverage on Millicom International Cellular has leaned supportive, with some high profile firms maintaining constructive views on the shares and on the company´s positioning in Latin America.
TMUS
US$183.65
T-Mobile US
7D
-3.2%
1Y
-16.3%

TMUS: 5G Coverage And Cash Returns Will Support Future Outperformance

The analyst fair value estimate for T-Mobile US has shifted from US$277.08 to US$268.22 as analysts update price targets across the sector, balancing stronger revenue and margin assumptions with a lower future P/E and mixed views on competitive intensity and cash flow growth. Analyst Commentary Recent research on T-Mobile US reflects a mix of optimism around execution and cash generation, alongside more cautious views on valuation, industry competition, and certain cash flow exposures.
DIS
US$110.34
Walt Disney
7D
-2.3%
1Y
1.5%

Walt Disney (NYSE:DIS) Is Due To Pay A Dividend Of $0.75

Jan 17
Walt Disney (NYSE:DIS) Is Due To Pay A Dividend Of $0.75
RDDT
US$225.36
Reddit
7D
-13.0%
1Y
19.7%
META
US$604.12
Meta Platforms
7D
-4.3%
1Y
-2.0%
STGW
US$6.65
Stagwell
7D
21.8%
1Y
0.3%
STUB
US$14.52
StubHub Holdings
7D
6.9%
1Y
n/a
AHMA
US$24.51
Ambitions Enterprise Management
7D
98.6%
1Y
n/a
WSHP
US$71.00
WeShop Holdings
7D
27.5%
1Y
n/a