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U.S. Telecom Sector Analysis
UpdatedJan 27, 2025
DataAggregated Company Financials
Companies475
- 7D3.7%
- 3M13.7%
- 1Y35.1%
- YTD5.4%
In the last week, the Telecom industry is up 3.7%, with Meta Platforms up 5.7%. In the same time, Electronic Arts was down 18%. In the last 12 months, the industry was up 35%. As for the next few years, earnings are expected to grow by 15% per annum.
Sector Valuation and Performance
Has the U.S. Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 27 Jan 2025 | US$6.4t | US$1.6t | US$198.3b | 18.8x | 32.2x | 4.1x |
| Wed, 25 Dec 2024 | US$6.2t | US$1.6t | US$189.6b | 18x | 32.9x | 4x |
| Fri, 22 Nov 2024 | US$5.9t | US$1.6t | US$189.7b | 19.8x | 31.3x | 3.8x |
| Sun, 20 Oct 2024 | US$5.7t | US$1.5t | US$188.9b | 18.5x | 29.9x | 3.7x |
| Tue, 17 Sep 2024 | US$5.3t | US$1.5t | US$187.4b | 18.7x | 28.3x | 3.4x |
| Thu, 15 Aug 2024 | US$5.3t | US$1.6t | US$189.6b | 18.8x | 28.1x | 3.4x |
| Sat, 13 Jul 2024 | US$5.5t | US$1.5t | US$191.2b | 17.3x | 28.9x | 3.6x |
| Mon, 10 Jun 2024 | US$5.3t | US$1.5t | US$191.0b | 15.3x | 28x | 3.5x |
| Wed, 08 May 2024 | US$5.2t | US$1.5t | US$193.7b | 18.2x | 26.9x | 3.4x |
| Fri, 05 Apr 2024 | US$5.2t | US$1.5t | US$176.0b | 19.5x | 29.3x | 3.4x |
| Sun, 03 Mar 2024 | US$4.9t | US$1.5t | US$174.0b | 16.9x | 28.1x | 3.2x |
| Tue, 30 Jan 2024 | US$5.0t | US$1.5t | US$145.5b | 15.3x | 34.2x | 3.3x |
| Thu, 28 Dec 2023 | US$4.6t | US$1.5t | US$127.9b | 14.7x | 36.4x | 3.1x |
| Sat, 25 Nov 2023 | US$4.5t | US$1.5t | US$128.3b | 16x | 35.2x | 3x |
| Mon, 23 Oct 2023 | US$4.3t | US$1.5t | US$102.5b | 14.9x | 41.7x | 2.8x |
| Wed, 20 Sep 2023 | US$4.4t | US$1.5t | US$104.4b | 14.3x | 41.8x | 2.9x |
| Fri, 18 Aug 2023 | US$4.2t | US$1.5t | US$102.7b | 14.9x | 41x | 2.8x |
| Sun, 16 Jul 2023 | US$4.3t | US$1.5t | US$106.8b | 16.6x | 40x | 2.9x |
| Tue, 13 Jun 2023 | US$4.1t | US$1.5t | US$107.1b | 15.9x | 38.3x | 2.8x |
| Thu, 11 May 2023 | US$3.8t | US$1.5t | US$104.6b | 17.1x | 36.6x | 2.6x |
| Sat, 08 Apr 2023 | US$3.8t | US$1.5t | US$115.4b | 16.6x | 33.3x | 2.6x |
| Mon, 06 Mar 2023 | US$3.6t | US$1.5t | US$113.7b | 20x | 31.4x | 2.4x |
| Wed, 01 Feb 2023 | US$3.6t | US$1.5t | US$141.4b | 19.1x | 25.7x | 2.5x |
| Fri, 30 Dec 2022 | US$3.2t | US$1.5t | US$166.4b | 15.5x | 19.1x | 2.1x |
| Sun, 27 Nov 2022 | US$3.3t | US$1.5t | US$165.9b | 18.2x | 20x | 2.2x |
| Tue, 25 Oct 2022 | US$3.4t | US$1.5t | US$187.1b | 15.6x | 17.9x | 2.3x |
| Thu, 22 Sep 2022 | US$3.4t | US$1.5t | US$187.6b | 14.9x | 18.1x | 2.3x |
| Sat, 20 Aug 2022 | US$3.9t | US$1.5t | US$186.4b | 17.2x | 21x | 2.6x |
| Mon, 18 Jul 2022 | US$2.4t | US$1.5t | US$214.3b | 15.7x | 11.1x | 1.6x |
| Wed, 15 Jun 2022 | US$4.2t | US$1.5t | US$214.0b | 16.4x | 19.7x | 2.9x |
| Fri, 13 May 2022 | US$3.8t | US$1.5t | US$217.8b | 17.8x | 17.6x | 2.6x |
| Sun, 10 Apr 2022 | US$4.6t | US$1.4t | US$223.8b | 20x | 20.7x | 3.2x |
| Tue, 08 Mar 2022 | US$4.5t | US$1.4t | US$225.8b | 16.8x | 20.1x | 3.1x |
| Thu, 03 Feb 2022 | US$5.3t | US$1.4t | US$219.3b | 20x | 24x | 3.7x |
Price to Earnings Ratio
24x
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 32.2x which is higher than its 3-year average PE of 28.4x.
- The 3-year average PS ratio of 3.0x is lower than the industry's current PS ratio of 4.1x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have declined 3.3% per year over the last three years.
- Meanwhile revenues for these companies have grown 3.6% 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, which has decreased profits.
Industry Trends
Which industries have driven the changes within the U.S. Telecom sector?
| US Market | 1.85% | |
| Telecom | 3.67% | |
| Entertainment | 6.79% | |
| Interactive Media and Services | 3.49% | |
| Telecom Services and Carriers | 1.96% | |
| Media | 1.94% | |
| Wireless Telecom | -0.19% | |
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 25.3%, which is higher than its past year's earnings decline of 8.3% 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.
Forecasted Growth
- Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 25% over the next 5 years.
- This is better than its past earnings decline of 8.3% 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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| META Meta Platforms | US$647.49 | 5.7% +US$87.7b | 61.5% | PE29.4x | |
| GOOGL Alphabet | US$200.21 | 2.1% +US$51.5b | 30.4% | PE26x | |
| NFLX Netflix | US$977.59 | 13.9% +US$51.1b | 69.8% | PE48x | |
| DIS Walt Disney | US$112.16 | 4.8% +US$9.0b | 15.0% | PE40.8x | |
| SPOT Spotify Technology | US$510.43 | 5.1% +US$5.0b | 133.5% | PE140.2x |
