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U.S. Telecom Sector Analysis

UpdatedJan 24, 2026
DataAggregated Company Financials
Companies505
  • 7D0.9%
  • 3M5.8%
  • 1Y25.0%
  • YTD1.4%

Last week, the Telecom industry hasn't moved much but Meta Platforms is up 6.2% in that time. As for the the longer term, the industry is up 25% over the past 12 months. 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
Sat, 24 Jan 2026US$7.9tUS$1.7tUS$283.0b16.6x27.8x4.8x
Mon, 22 Dec 2025US$7.7tUS$1.6tUS$280.9b16.4x27.4x4.7x
Wed, 19 Nov 2025US$7.3tUS$1.6tUS$285.7b16.4x25.5x4.4x
Fri, 17 Oct 2025US$7.4tUS$1.6tUS$286.1b17.8x25.7x4.6x
Sun, 14 Sep 2025US$7.4tUS$1.6tUS$286.1b20.7x25.8x4.6x
Tue, 12 Aug 2025US$6.9tUS$1.6tUS$285.6b20.6x24.2x4.2x
Thu, 10 Jul 2025US$6.6tUS$1.6tUS$250.2b18.2x26.4x4.1x
Sat, 07 Jun 2025US$6.3tUS$1.6tUS$249.9b17.2x25.3x4x
Mon, 05 May 2025US$5.9tUS$1.6tUS$243.7b17x24.2x3.7x
Wed, 02 Apr 2025US$5.7tUS$1.6tUS$227.4b17.3x25x3.6x
Fri, 28 Feb 2025US$6.2tUS$1.6tUS$228.1b16.4x27.3x3.9x
Sun, 26 Jan 2025US$6.4tUS$1.6tUS$198.3b18.4x32.2x4.1x
Tue, 24 Dec 2024US$6.1tUS$1.6tUS$189.6b18.4x32.2x3.9x
Thu, 21 Nov 2024US$5.9tUS$1.6tUS$189.7b19.7x31.3x3.8x
Sat, 19 Oct 2024US$5.6tUS$1.5tUS$188.9b18.6x29.7x3.6x
Mon, 16 Sep 2024US$5.3tUS$1.5tUS$188.1b18.7x28.2x3.4x
Wed, 14 Aug 2024US$5.3tUS$1.5tUS$189.8b19.5x27.7x3.4x
Fri, 12 Jul 2024US$5.7tUS$1.5tUS$191.2b17.3x29.8x3.7x
Sun, 09 Jun 2024US$5.4tUS$1.5tUS$191.0b15.3x28.1x3.5x
Tue, 07 May 2024US$5.2tUS$1.5tUS$194.6b18.7x26.6x3.4x
Thu, 04 Apr 2024US$5.2tUS$1.5tUS$176.0b19.6x29.3x3.4x
Sat, 02 Mar 2024US$4.9tUS$1.5tUS$174.4b16.8x28x3.2x
Mon, 29 Jan 2024US$5.0tUS$1.5tUS$145.5b15.1x34.2x3.3x
Wed, 27 Dec 2023US$4.6tUS$1.5tUS$127.9b15.4x36.3x3x
Fri, 24 Nov 2023US$4.5tUS$1.5tUS$127.3b16.3x35.4x3x
Sun, 22 Oct 2023US$4.3tUS$1.5tUS$102.5b14.9x41.8x2.9x
Tue, 19 Sep 2023US$4.3tUS$1.5tUS$104.4b13.7x41.7x2.9x
Thu, 17 Aug 2023US$4.2tUS$1.5tUS$102.7b15.1x41x2.8x
Sat, 15 Jul 2023US$4.3tUS$1.5tUS$106.8b16.6x40x2.9x
Mon, 12 Jun 2023US$4.1tUS$1.5tUS$107.1b15.8x37.9x2.7x
Wed, 10 May 2023US$3.8tUS$1.5tUS$106.1b16.2x35.5x2.5x
Fri, 07 Apr 2023US$3.8tUS$1.5tUS$115.5b16.6x33.3x2.6x
Sun, 05 Mar 2023US$3.5tUS$1.5tUS$113.7b19.3x31.1x2.4x
Tue, 31 Jan 2023US$3.6tUS$1.5tUS$141.4b19.1x25.3x2.4x
Price to Earnings Ratio

25.3x


Total Market Cap: US$3.6tTotal Earnings: US$141.4bTotal 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-0.39%
Telecom0.88%
Telecom Services and Carriers1.74%
Interactive Media and Services1.28%
Media1.15%
Wireless Telecom-0.43%
Entertainment-1.34%
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 17.0%, 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$658.766.2%
+US$97.1b		1.7%PE28.4x
CMCSA ComcastUS$29.305.3%
+US$5.4b		-22.1%PE4.7x
BIDU BaiduUS$161.448.0%
+US$4.1b		86.9%PE45.9x
VZ Verizon CommunicationsUS$39.521.6%
+US$2.6b		-0.05%PE8.4x
SPOT Spotify TechnologyUS$513.211.7%
+US$1.8b		0.5%PE63.7x

Latest News

META
US$658.76
Meta Platforms
7D
6.2%
1Y
1.7%
AD
US$47.92
Array Digital Infrastructure
7D
-17.1%
1Y
-24.0%
SATS
US$126.50
EchoStar
7D
2.6%
1Y
357.3%

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$218.88
Reddit
7D
-5.3%
1Y
20.0%

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.
DIS
US$110.98
Walt Disney
7D
-0.2%
1Y
-1.1%

ESPN' streaming transition and monetisation are starting to prove out

A few things have moved in a positive direction for Disney’s sports business recently. Headline line: Disney is strengthening ESPN’s position from a few different angles -protecting distribution, keeping the live sports engine strong, and continuing the shift toward a bigger streaming-led future.
T
US$23.59
AT&T
7D
0.4%
1Y
3.8%
RBLX
US$74.12
Roblox
7D
-15.1%
1Y
10.5%
ASTS
US$113.57
AST SpaceMobile
7D
-1.9%
1Y
458.1%

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$161.44
Baidu
7D
8.0%
1Y
86.9%
STUB
US$14.70
StubHub Holdings
7D
-8.1%
1Y
n/a

All In Pricing And Regulatory Risks Will Pressure Ticketing Margins Over Time

Catalysts About StubHub Holdings StubHub Holdings operates a global online marketplace focused on buying and selling live event tickets. What are the underlying business or industry changes driving this perspective?
NFLX
US$86.12
Netflix
7D
-2.1%
1Y
-11.9%
CMCSA
US$29.30
Comcast
7D
5.3%
1Y
-22.1%

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.
VZ
US$39.52
Verizon Communications
7D
1.6%
1Y
-0.05%
SPOT
US$513.21
Spotify Technology
7D
1.7%
1Y
0.5%

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$327.93
Alphabet
7D
-0.6%
1Y
63.8%

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.
TTWO
US$245.73
Take-Two Interactive Software
7D
2.3%
1Y
32.5%

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.