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U.S. Telecom Sector Analysis

UpdatedApr 20, 2026
DataAggregated Company Financials
Companies483
  • 7D5.5%
  • 3M6.7%
  • 1Y58.8%
  • YTD5.1%

Over the last 7 days, the Telecom industry has risen 5.5%, driven by gains from Alphabet of 6.3%. In the same time, Netflix was down 5.7%. In the last 12 months, the industry was up 59%. As for the next few years, earnings are expected to grow by 14% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 21 Apr 2026US$8.1tUS$1.7tUS$274.7b17.1x29.6x4.8x
Thu, 19 Mar 2026US$7.6tUS$1.7tUS$271.9b17.8x27.9x4.5x
Sat, 14 Feb 2026US$7.6tUS$1.7tUS$282.6b16.3x26.7x4.5x
Mon, 12 Jan 2026US$7.9tUS$1.6tUS$282.3b16.8x28.1x4.8x
Wed, 10 Dec 2025US$7.8tUS$1.6tUS$281.0b16.2x27.8x4.8x
Fri, 07 Nov 2025US$7.4tUS$1.6tUS$285.1b18x25.9x4.5x
Sun, 05 Oct 2025US$7.3tUS$1.6tUS$286.1b18.9x25.5x4.5x
Tue, 02 Sep 2025US$7.1tUS$1.6tUS$287.3b21.3x24.7x4.3x
Thu, 31 Jul 2025US$6.7tUS$1.6tUS$256.3b18.4x26x4.1x
Sat, 28 Jun 2025US$6.6tUS$1.6tUS$250.2b17.4x26.2x4.1x
Mon, 26 May 2025US$6.1tUS$1.6tUS$248.0b16.9x24.6x3.8x
Wed, 23 Apr 2025US$5.2tUS$1.6tUS$228.1b16.2x23x3.3x
Fri, 21 Mar 2025US$5.8tUS$1.6tUS$228.1b16.7x25.6x3.7x
Sun, 16 Feb 2025US$6.6tUS$1.6tUS$218.0b19.9x30.3x4.2x
Tue, 14 Jan 2025US$6.1tUS$1.6tUS$189.6b19.1x32.1x3.9x
Thu, 12 Dec 2024US$6.2tUS$1.6tUS$189.5b17.8x32.6x3.9x
Sat, 09 Nov 2024US$5.9tUS$1.6tUS$189.0b19.1x31.4x3.8x
Mon, 07 Oct 2024US$5.7tUS$1.5tUS$188.2b18.3x30.4x3.7x
Wed, 04 Sep 2024US$5.4tUS$1.6tUS$189.1b18.8x28.4x3.5x
Fri, 02 Aug 2024US$5.3tUS$1.5tUS$203.4b20.3x26x3.4x
Sun, 30 Jun 2024US$5.5tUS$1.5tUS$191.3b16x28.8x3.6x
Tue, 28 May 2024US$5.3tUS$1.5tUS$191.3b17.3x27.7x3.5x
Thu, 25 Apr 2024US$5.1tUS$1.5tUS$176.7b17.9x28.8x3.4x
Sat, 23 Mar 2024US$5.1tUS$1.5tUS$175.9b18x28.9x3.4x
Mon, 19 Feb 2024US$4.8tUS$1.5tUS$174.0b16x27.7x3.2x
Wed, 17 Jan 2024US$4.7tUS$1.5tUS$128.1b15.4x36.7x3.1x
Fri, 15 Dec 2023US$4.5tUS$1.5tUS$128.1b16.9x35x2.9x
Sun, 12 Nov 2023US$4.3tUS$1.5tUS$125.7b13.1x34.4x2.9x
Tue, 10 Oct 2023US$4.4tUS$1.5tUS$104.7b14.3x41.8x2.9x
Thu, 07 Sep 2023US$4.3tUS$1.5tUS$104.4b14.5x41.2x2.9x
Sat, 05 Aug 2023US$4.3tUS$1.5tUS$103.3b14.9x41.5x2.9x
Mon, 03 Jul 2023US$4.1tUS$1.5tUS$106.9b17.1x38.7x2.8x
Wed, 31 May 2023US$4.0tUS$1.5tUS$107.1b15.5x37.4x2.7x
Fri, 28 Apr 2023US$3.8tUS$1.5tUS$112.0b16.5x34.1x2.6x
Price to Earnings Ratio

34.1x


Total Market Cap: US$3.8tTotal Earnings: US$112.0bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 30.3x202420252026
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 3.7x 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 34% per year over the last three years.
  • Revenues for these companies have grown 4.1% 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 Market4.02%
Telecom5.48%
Interactive Media and Services7.06%
Media5.25%
Wireless Telecom2.51%
Telecom Services and Carriers2.17%
Entertainment-0.39%
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 17.2%, which is higher than its past year's earnings decline of 9.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Media industry, expecting annual earnings growth of 31% over the next 5 years.
  • This is better than its past earnings decline of 0.02% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 8.2% 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$337.425.0%
+US$194.9b		128.5%PE30.9x
META Meta PlatformsUS$670.915.7%
+US$98.0b		38.4%PE28.2x
DIS Walt DisneyUS$106.305.1%
+US$9.1b		26.5%PE15.4x
SPOT Spotify TechnologyUS$536.766.5%
+US$6.7b		-3.9%PE42.4x
TMUS T-Mobile USUS$198.363.1%
+US$6.5b		-21.7%PE19.9x

Latest News

ASTS
US$81.00
AST SpaceMobile
7D
-18.2%
1Y
290.1%
TMUS
US$198.36
T-Mobile US
7D
3.1%
1Y
-21.7%

T-Mobile US: Top Of Class Growth, Top Of Class Valuation

Apr 20
GOOGL
US$337.42
Alphabet
7D
5.0%
1Y
128.5%

Alphabet: Insane Performance, With Future Strength

Apr 20
NFLX
US$94.83
Netflix
7D
-8.1%
1Y
-4.0%
LZMH
US$0.15
LZ Technology Holdings
7D
-87.4%
1Y
-98.2%
META
US$670.91
Meta Platforms
7D
5.7%
1Y
38.4%
IMAX
US$35.95
IMAX
7D
-2.7%
1Y
60.9%

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The IMAX analyst price target edges higher to about $45.27 from $45.00, as analysts factor in recent target raises tied to strong Q4 results, higher box office activity, robust system installs, and expectations for continued importance within the global theatrical ecosystem. Analyst Commentary Recent Street research on IMAX clusters around higher price targets and generally positive reactions to the latest quarterly results, box office trends, and system installation activity.
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Live Nation Entertainment
7D
-5.8%
1Y
26.4%

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BIDU
US$127.75
Baidu
7D
14.1%
1Y
54.0%
VZ
US$46.44
Verizon Communications
7D
2.2%
1Y
8.2%

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TKO
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TKO Group Holdings
7D
-5.5%
1Y
29.1%

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DIS
US$106.30
Walt Disney
7D
5.1%
1Y
26.5%

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Analysts have reduced their average price target on Walt Disney by $0.80 to reflect more cautious assumptions on long term P/E, revenue growth, and profit margins, following a series of recent target reductions from several firms alongside one upgrade. Analyst Commentary Recent research on Walt Disney shows a mix of optimism and caution, with several firms trimming price targets and one firm upgrading the stock.
CMCSA
US$29.73
Comcast
7D
6.0%
1Y
-11.5%

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Comcast's analyst price target edges lower by about $0.33 as analysts factor in softer revenue growth expectations and rising competitive pressures from fiber and new wireless offerings, while still recognizing relatively steady margins and price-to-earnings assumptions. Analyst Commentary Recent Street research on Comcast points to a more cautious stance overall, with several firms trimming price targets and at least one downgrade in rating as competition and fiber build outs weigh on sentiment.
FWON.K
US$89.89
Formula One Group
7D
-0.9%
1Y
8.0%

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WB
US$8.78
Weibo
7D
-1.3%
1Y
14.5%

WB: Dividend Initiation And Cash Returns Will Support Future Upside

Analysts now set a lower Weibo price target of $14.00, down from $15.50, citing updated assumptions that combine higher expected revenue growth with a slightly lower profit margin outlook and a revised forward P/E multiple. What's in the News The board approved an annual cash dividend of US$0.61 per ordinary share and per ADS for the year ended December 31, 2025, with the total payout expected to be about US$150 million (company announcement).
SPOT
US$536.76
Spotify Technology
7D
6.5%
1Y
-3.9%

SPOT: 2026 Price Hikes And AI Features Will Support Margins

The analyst price target for Spotify has edged slightly lower by about $2 to reflect a modestly higher discount rate and slightly softer revenue growth assumptions, even as analysts continue to highlight potential support from improving profit margins and product investments, including AI features. Analyst Commentary Recent research on Spotify reflects a mixed but engaged view, with analysts actively revisiting ratings and price targets as they reassess AI risk, margin trajectory, and the pace of price changes.