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U.S. Telecom Sector Analysis

UpdatedDec 26, 2025
DataAggregated Company Financials
Companies506
  • 7D1.7%
  • 3M4.6%
  • 1Y29.1%
  • YTD30.1%

Over the last 7 days, the Telecom industry has risen 3.7%, driven by gains from Alphabet of 5.9%. This means that the industry has gained 27% over the past year. 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
Fri, 26 Dec 2025US$7.8tUS$1.6tUS$282.2b16.2x27.7x4.8x
Sun, 23 Nov 2025US$7.4tUS$1.6tUS$283.1b16.4x26x4.5x
Tue, 21 Oct 2025US$7.5tUS$1.6tUS$286.1b17.8x26.1x4.6x
Thu, 18 Sep 2025US$7.6tUS$1.6tUS$285.9b20.1x26.5x4.7x
Sat, 16 Aug 2025US$7.1tUS$1.6tUS$286.5b20.7x24.6x4.3x
Mon, 14 Jul 2025US$6.6tUS$1.6tUS$250.2b17.8x26.3x4.1x
Wed, 11 Jun 2025US$6.5tUS$1.6tUS$250.0b17.6x25.9x4x
Fri, 09 May 2025US$5.8tUS$1.6tUS$246.6b17x23.6x3.6x
Sun, 06 Apr 2025US$5.2tUS$1.6tUS$227.3b15.3x22.8x3.3x
Tue, 04 Mar 2025US$6.2tUS$1.6tUS$227.7b16.4x27.2x3.9x
Thu, 30 Jan 2025US$6.4tUS$1.6tUS$201.0b17.1x32.1x4.1x
Sat, 28 Dec 2024US$6.2tUS$1.6tUS$189.6b18.5x32.8x4x
Mon, 25 Nov 2024US$5.8tUS$1.6tUS$189.7b20.1x30.4x3.7x
Wed, 23 Oct 2024US$5.6tUS$1.5tUS$183.4b18.2x30.5x3.6x
Fri, 20 Sep 2024US$5.4tUS$1.5tUS$188.1b19x28.6x3.5x
Sun, 18 Aug 2024US$5.3tUS$1.6tUS$189.1b18.8x28.2x3.4x
Tue, 16 Jul 2024US$5.5tUS$1.5tUS$191.2b16.9x28.9x3.6x
Thu, 13 Jun 2024US$5.4tUS$1.5tUS$191.0b16.5x28.3x3.6x
Sat, 11 May 2024US$5.2tUS$1.5tUS$193.7b18.4x26.9x3.4x
Mon, 08 Apr 2024US$5.2tUS$1.5tUS$176.0b19.4x29.3x3.4x
Wed, 06 Mar 2024US$4.8tUS$1.5tUS$173.8b17.4x27.7x3.2x
Fri, 02 Feb 2024US$4.8tUS$1.5tUS$152.6b14.9x31.6x3.1x
Sun, 31 Dec 2023US$4.6tUS$1.5tUS$128.0b15.7x36.2x3x
Tue, 28 Nov 2023US$4.5tUS$1.5tUS$128.3b15.6x35.2x3x
Thu, 26 Oct 2023US$4.1tUS$1.5tUS$108.4b13.7x38.2x2.7x
Sat, 23 Sep 2023US$4.2tUS$1.5tUS$104.7b14.1x40.1x2.8x
Mon, 21 Aug 2023US$4.1tUS$1.5tUS$102.8b14.5x40.3x2.8x
Wed, 19 Jul 2023US$4.3tUS$1.5tUS$106.8b16.3x40x2.9x
Fri, 16 Jun 2023US$4.1tUS$1.5tUS$107.1b17.5x38.5x2.8x
Sun, 14 May 2023US$3.9tUS$1.5tUS$105.2b16.3x36.9x2.6x
Tue, 11 Apr 2023US$3.8tUS$1.5tUS$115.8b16.9x33x2.6x
Thu, 09 Mar 2023US$3.5tUS$1.5tUS$115.1b18.8x30.6x2.4x
Sat, 04 Feb 2023US$3.8tUS$1.5tUS$136.3b19.7x28x2.6x
Mon, 02 Jan 2023US$3.2tUS$1.5tUS$166.4b15.2x19.1x2.1x
Price to Earnings Ratio

19.1x


Total Market Cap: US$3.2tTotal Earnings: US$166.4bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 30.3x20242025
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 30.3x.
  • The 3-year average PS ratio of 3.4x 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 19% per year over the last three years.
  • Revenues for these companies have grown 2.9% 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 Market1.34%
Telecom1.71%
Telecom Services and Carriers2.66%
Interactive Media and Services1.87%
Media1.28%
Wireless Telecom1.24%
Entertainment0.86%
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 19.6%, which is higher than its past year's earnings decline of 4.9% 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 of 2.1x.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 20% over the next 5 years.
  • This is better than its past earnings decline of 4.9% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 7.8% 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$314.092.3%
+US$83.6b		62.9%PE30.5x
META Meta PlatformsUS$667.551.3%
+US$22.1b		11.3%PE28.7x
DIS Walt DisneyUS$114.482.9%
+US$5.8b		2.6%PE16.5x
WBD Warner Bros. DiscoveryUS$29.235.3%
+US$3.6b		175.5%PE148.2x
T AT&TUS$24.662.1%
+US$3.6b		7.9%PE7.9x

Latest News

RDDT
US$225.85
Reddit
7D
-3.1%
1Y
30.1%

RDDT: Elevated Expectations Will Expose Growing Risk From Weakening User Engagement

We are raising our Reddit price target to approximately $151 from about $129, as analysts now expect faster revenue growth, better margins, and a more reasonable future earnings multiple. This view is supported by strong Q3 results, an above-consensus Q4 outlook, and continued momentum in both advertising and data licensing.
META
US$667.55
Meta Platforms
7D
1.3%
1Y
11.3%

Meta Stock: When Attention, AI, and Advertising Collide

Meta Platforms (NASDAQ: META) sits at the intersection of three forces shaping the modern internet: human attention, artificial intelligence, and advertising economics. While debates around privacy, content moderation, and platform influence continue, Meta’s core business remains deceptively simple—capturing attention and converting it into measurable outcomes for advertisers.
LYV
US$145.31
Live Nation Entertainment
7D
3.0%
1Y
10.2%

LYV: Secondary Ticketing Reforms Will Support Future Upside Despite Regulatory Overhang

Analysts have modestly trimmed their price target on Live Nation Entertainment to approximately $169 per share. The change reflects slightly higher perceived regulatory risk and timing uncertainty around secondary ticketing and FTC actions, even as they continue to highlight robust demand indicators, strong onsite spending, and expectations for sustained double digit growth and improving profitability.
GOOGL
US$314.09
Alphabet
7D
2.3%
1Y
62.9%
NFLX
US$93.64
Netflix
7D
-0.8%
1Y
3.2%

NFLX: Future Performance Will Balance Warner Bid Risks And New Revenue Streams

Analysts have modestly reduced their Netflix price target to reflect a lower fair value estimate of about $86.94, driven by slightly slower expected revenue growth and a lower future P/E multiple. These factors are only partly offset by improved long term margin assumptions and a largely stock split adjusted framework.
BIDU
US$123.36
Baidu
7D
-0.4%
1Y
42.4%

BIDU: AI Cloud And Robotaxis Will Drive Future Earnings Multiple Expansion

Analysts have nudged our Baidu fair value estimate slightly higher to approximately $152 per share, citing a wave of price target hikes and upgrades. They note growing confidence that accelerating AI cloud growth, emerging robotaxi monetization, and potential capital returns could support sustained earnings expansion and margin recovery into 2026.
WBD
US$29.23
Warner Bros. Discovery
7D
5.3%
1Y
175.5%
DIS
US$114.48
Walt Disney
7D
2.9%
1Y
2.6%
DJT
US$14.31
Trump Media & Technology Group
7D
-11.1%
1Y
-60.3%
T
US$24.66
AT&T
7D
2.1%
1Y
7.9%
VZ
US$40.32
Verizon Communications
7D
1.3%
1Y
1.0%
OMC
US$79.95
Omnicom Group
7D
-0.3%
1Y
-7.6%
TME
US$17.62
Tencent Music Entertainment Group
7D
-1.0%
1Y
50.3%

Calculating The Fair Value Of Tencent Music Entertainment Group (NYSE:TME)

Dec 16
Calculating The Fair Value Of Tencent Music Entertainment Group (NYSE:TME)
LUMN
US$7.77
Lumen Technologies
7D
-5.1%
1Y
41.5%

LUMN: Rising Debt Costs Will Likely Undermine Recent Free Cash Flow Gains

Analysts have raised their price target on Lumen Technologies to about $2.24 from $2.00 per share, citing stronger than expected Q3 execution, reaffirmed 2025 guidance, and balance sheet tailwinds from debt refinancing and a more favorable interest rate backdrop. Analyst Commentary While recent results and balance sheet actions have prompted upward revisions to price targets, not all market participants view Lumen's trajectory as uniformly positive.
TMUS
US$199.02
T-Mobile US
7D
1.2%
1Y
-10.8%
WSHP
US$110.00
WeShop Holdings
7D
-15.4%
1Y
n/a