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U.S. Telecom Sector Analysis

UpdatedJan 26, 2026
DataAggregated Company Financials
Companies503
  • 7D0.9%
  • 3M3.5%
  • 1Y25.2%
  • YTD1.5%

Last week, the Telecom industry hasn't moved much but Meta Platforms is up 6.2% in that time. The past year has been better, since the industry has gained 25% in that time. 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
Tue, 27 Jan 2026US$7.9tUS$1.7tUS$283.0b16.6x27.8x4.8x
Thu, 25 Dec 2025US$7.8tUS$1.6tUS$280.9b16.2x27.9x4.8x
Sat, 22 Nov 2025US$7.3tUS$1.6tUS$283.1b16.6x25.6x4.4x
Mon, 20 Oct 2025US$7.4tUS$1.6tUS$286.1b17.6x25.7x4.6x
Wed, 17 Sep 2025US$7.6tUS$1.6tUS$285.9b20.1x26.5x4.7x
Fri, 15 Aug 2025US$7.0tUS$1.6tUS$286.6b18.9x24.6x4.3x
Sun, 13 Jul 2025US$6.5tUS$1.6tUS$250.2b17.8x26.2x4.1x
Tue, 10 Jun 2025US$6.5tUS$1.6tUS$250.0b17.2x25.8x4x
Thu, 08 May 2025US$5.9tUS$1.6tUS$246.9b17x23.8x3.7x
Sat, 05 Apr 2025US$5.5tUS$1.6tUS$227.3b15.2x24x3.5x
Mon, 03 Mar 2025US$6.2tUS$1.6tUS$227.8b16.8x27.2x3.9x
Wed, 29 Jan 2025US$6.4tUS$1.6tUS$200.0b17.2x31.8x4.1x
Fri, 27 Dec 2024US$6.2tUS$1.6tUS$189.6b18.6x32.9x4x
Sun, 24 Nov 2024US$5.8tUS$1.6tUS$189.7b20.1x30.4x3.7x
Tue, 22 Oct 2024US$5.7tUS$1.6tUS$189.2b17.8x29.9x3.6x
Thu, 19 Sep 2024US$5.4tUS$1.5tUS$188.2b18.8x28.6x3.5x
Sat, 17 Aug 2024US$5.3tUS$1.6tUS$189.1b19.3x28.2x3.4x
Mon, 15 Jul 2024US$5.5tUS$1.5tUS$191.2b17.3x28.9x3.6x
Wed, 12 Jun 2024US$5.4tUS$1.5tUS$191.0b16.6x28.2x3.5x
Fri, 10 May 2024US$5.2tUS$1.5tUS$193.5b18.3x26.8x3.4x
Sun, 07 Apr 2024US$5.2tUS$1.5tUS$176.0b19.4x29.3x3.4x
Tue, 05 Mar 2024US$4.8tUS$1.5tUS$173.8b17.7x27.7x3.2x
Thu, 01 Feb 2024US$5.0tUS$1.5tUS$152.7b15.3x32.6x3.2x
Sat, 30 Dec 2023US$4.7tUS$1.5tUS$128.0b15.7x36.4x3.1x
Mon, 27 Nov 2023US$4.5tUS$1.5tUS$128.3b16x35.2x3x
Wed, 25 Oct 2023US$4.3tUS$1.5tUS$102.5b14x42x2.9x
Fri, 22 Sep 2023US$4.2tUS$1.5tUS$104.7b14.4x40.1x2.8x
Sun, 20 Aug 2023US$4.1tUS$1.5tUS$102.8b14.5x40.3x2.8x
Tue, 18 Jul 2023US$4.3tUS$1.5tUS$106.8b16.9x40.1x2.9x
Thu, 15 Jun 2023US$4.1tUS$1.5tUS$107.1b17.1x38.5x2.8x
Sat, 13 May 2023US$3.9tUS$1.5tUS$105.2b17.1x36.9x2.6x
Mon, 10 Apr 2023US$3.8tUS$1.5tUS$115.4b16.6x33.3x2.6x
Wed, 08 Mar 2023US$3.5tUS$1.5tUS$113.7b18.6x30.9x2.4x
Fri, 03 Feb 2023US$3.9tUS$1.5tUS$140.9b19.8x27.8x2.7x
Price to Earnings Ratio

27.8x


Total Market Cap: US$3.9tTotal Earnings: US$140.9bTotal 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 4.8x.
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-0.36%
Telecom0.91%
Telecom Services and Carriers1.75%
Interactive Media and Services1.30%
Media1.13%
Wireless Telecom-0.34%
Entertainment-1.29%
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 17.1%, 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 growth to stay flat over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
META Meta PlatformsUS$672.368.4%
+US$131.3b		1.9%PE29x
GOOGL AlphabetUS$333.251.0%
+US$39.3b		73.7%PE32.4x
CMCSA ComcastUS$29.435.8%
+US$5.9b		-23.0%PE4.7x
VZ Verizon CommunicationsUS$39.621.8%
+US$3.0b		-2.5%PE8.4x
BIDU BaiduUS$156.084.4%
+US$2.3b		76.3%PE44.4x

Latest News

TTD
US$33.81
Trade Desk
7D
-4.7%
1Y
-71.6%
GOOGL
US$333.25
Alphabet
7D
1.0%
1Y
73.7%
VZ
US$39.62
Verizon Communications
7D
1.8%
1Y
-2.5%

VZ: New CEO And Cost Cuts Will Support Cash Flow Restructuring

Narrative Update: Verizon Communications Analyst Price Target Shift The analyst price target for Verizon Communications has been trimmed by about US$0.48 per share, reflecting recent price target reductions from several firms and slightly more cautious assumptions around the discount rate, revenue growth, profit margin, and future P/E. Analysts link these changes to execution risk during restructuring and competitive holiday promotions.
WBD
US$28.24
Warner Bros. Discovery
7D
-1.2%
1Y
169.2%

WBD: Future Bidding Outcomes And Deal Structure Will Drive Share Upside

Analysts lifted their fair value estimate for Warner Bros. Discovery to $35.00 from $21.27, citing updated assumptions for revenue growth, profit margins, a lower discount rate and a higher future P/E multiple, along with recent Street research highlighting potential M&A interest and revised price targets in the broader streaming group.
AD
US$47.15
Array Digital Infrastructure
7D
-18.4%
1Y
-24.9%

AD: Spectrum Sale Windfall And Special Dividend Will Drive Future Upside

Analysts have raised their price target for Array Digital Infrastructure from US$54.50 to about US$57.71, citing updated assumptions around fair value, discount rate, revenue growth, profit margin and future P/E as the main drivers of this change. What's in the News Array Digital Infrastructure closed a previously announced agreement with AT&T to sell a portion of its retained spectrum licenses for total consideration of US$1.018b, providing a significant cash inflow for the company (Key Developments).
META
US$672.36
Meta Platforms
7D
8.4%
1Y
1.9%

META: AI-Driven Spending And Regulatory Scrutiny Will Shape Balanced Return Outlook

Analysts have trimmed their blended price targets on Meta Platforms by adjusting assumptions for fair value to about $691, nudging the discount rate higher and slightly reducing long term margin and P/E expectations, even as they factor in stronger revenue growth supported by AI driven ad performance and heavier 2026 investment plans, as flagged in recent research. Analyst Commentary Recent research on Meta Platforms reflects a mixed tone, with several price target cuts and rating changes clustered around concerns about spending, valuation, and the timing of returns from artificial intelligence projects.
SATS
US$119.72
EchoStar
7D
-2.9%
1Y
341.9%

SATS: EchoStar Spectrum Deployment And New Capital Division Will Drive Upside

Analysts have lifted their fair value estimate for EchoStar from US$102.00 to US$158.00, pointing to a lower discount rate and a higher assumed future P/E multiple as key drivers of the target change, even though they now factor in a modest revenue decline and essentially stable profit margins. What's in the News AT&T has deployed mid band spectrum acquired from EchoStar to nearly 23,000 cell sites in a few weeks, aiming to lift 5G download speeds by up to 80% for mobility users and 55% for AT&T Internet Air customers across more than 5,300 cities in 48 states (client announcement).
RDDT
US$213.63
Reddit
7D
-7.5%
1Y
18.1%

RDDT: Future Returns Will Rely On GenAI Monetization And Advertising

Narrative Update: Reddit Analyst Price Target Shift Analysts have nudged our Reddit fair value estimate higher from US$239.76 to about US$251. This reflects a cluster of recent price target hikes that lean on expectations for solid revenue growth, relatively high margins, and support for premium P/E multiples tied to GenAI and advertising monetization themes.
RBLX
US$74.01
Roblox
7D
-15.2%
1Y
10.2%
ASTS
US$104.78
AST SpaceMobile
7D
-9.5%
1Y
446.9%

AST SpaceMobile, Inc. (NASDAQ:ASTS) Analysts Are More Bearish Than They Used To Be

Jan 22
AST SpaceMobile, Inc. (NASDAQ:ASTS) Analysts Are More Bearish Than They Used To Be
BIDU
US$156.08
Baidu
7D
4.4%
1Y
76.3%
NFLX
US$85.70
Netflix
7D
-2.6%
1Y
-11.8%
CMCSA
US$29.43
Comcast
7D
5.8%
1Y
-23.0%

CMCSA: Broadband Reset And Versant Spin Off Will Reshape Future Returns

Analysts have trimmed their fair value estimate for Comcast from about $49.43 to $43.62, reflecting lower assumed revenue growth, a slightly higher discount rate, and a reset future P/E multiple following mixed rating changes, reduced price targets, and the impact of the Versant spin off. Analyst Commentary Recent research on Comcast has shifted toward a more cautious stance overall, with several firms cutting price targets and rethinking growth assumptions following the Versant spin off, rising broadband competition, and expectations for higher content costs.
SPOT
US$512.60
Spotify Technology
7D
1.6%
1Y
-0.3%

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.
TTWO
US$245.63
Take-Two Interactive Software
7D
2.3%
1Y
30.7%

TTWO: Fair Value View Balances Content Pipeline Hopes And Execution Risks

Analysts have raised their fair value estimate for Take-Two Interactive Software to US$226.19 from US$181.99, reflecting higher assumed revenue growth, margins, and future P/E multiples, in line with recent Street price target increases into the US$280 to US$288 range. Analyst Commentary Recent Street research shows a mix of optimism around Take-Two Interactive Software's content pipeline and cautious views around valuation and execution risk.
TMUS
US$187.96
T-Mobile US
7D
0.9%
1Y
-15.1%

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.