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U.S. Telecom Sector Analysis

UpdatedFeb 13, 2025
DataAggregated Company Financials
Companies474
  • 7D0.2%
  • 3M11.2%
  • 1Y34.6%
  • YTD7.5%

Over the last 7 days, the Telecom industry has remained flat, although notably Alphabet declined by 4.0%. As for the the longer term, the industry is up 35% over the past 12 months. Earnings are forecast to grow by 14% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 13 Feb 2025US$6.5tUS$1.6tUS$218.1b19.1x29.9x4.1x
Sat, 11 Jan 2025US$6.2tUS$1.6tUS$189.8b18.7x32.4x3.9x
Mon, 09 Dec 2024US$6.1tUS$1.6tUS$189.5b18.7x32.4x3.9x
Wed, 06 Nov 2024US$5.6tUS$1.6tUS$188.7b17.9x29.8x3.6x
Fri, 04 Oct 2024US$5.6tUS$1.5tUS$188.3b18.3x30x3.7x
Sun, 01 Sep 2024US$5.4tUS$1.6tUS$189.1b18.8x28.4x3.5x
Tue, 30 Jul 2024US$5.2tUS$1.5tUS$197.1b20.5x26.3x3.4x
Thu, 27 Jun 2024US$5.5tUS$1.5tUS$191.0b17.7x29x3.6x
Sat, 25 May 2024US$5.2tUS$1.5tUS$191.4b17.6x27.3x3.4x
Mon, 22 Apr 2024US$5.0tUS$1.5tUS$177.3b17.6x28x3.3x
Wed, 20 Mar 2024US$5.0tUS$1.5tUS$175.9b18.2x28.3x3.3x
Fri, 16 Feb 2024US$4.9tUS$1.5tUS$172.8b17.3x28.5x3.3x
Sun, 14 Jan 2024US$4.7tUS$1.5tUS$128.1b15.3x36.7x3.1x
Tue, 12 Dec 2023US$4.4tUS$1.5tUS$128.1b16.5x34.7x2.9x
Thu, 09 Nov 2023US$4.3tUS$1.5tUS$122.2b12.8x35.3x2.8x
Sat, 07 Oct 2023US$4.3tUS$1.5tUS$104.7b13.9x41.4x2.9x
Mon, 04 Sep 2023US$4.3tUS$1.5tUS$104.5b14.5x41.4x2.9x
Wed, 02 Aug 2023US$4.4tUS$1.5tUS$110.7b15x39.7x2.9x
Fri, 30 Jun 2023US$4.1tUS$1.5tUS$107.0b17x38.3x2.8x
Sun, 28 May 2023US$4.0tUS$1.5tUS$107.1b16.2x37.5x2.7x
Tue, 25 Apr 2023US$3.7tUS$1.5tUS$115.0b16.3x32.4x2.5x
Thu, 23 Mar 2023US$3.6tUS$1.5tUS$115.3b17.2x31.6x2.5x
Sat, 18 Feb 2023US$3.6tUS$1.5tUS$122.0b20.1x29.4x2.4x
Mon, 16 Jan 2023US$3.4tUS$1.5tUS$166.4b17.6x20.7x2.3x
Wed, 14 Dec 2022US$3.3tUS$1.5tUS$166.5b18.1x20.1x2.2x
Fri, 11 Nov 2022US$3.2tUS$1.5tUS$163.6b17.3x19.6x2.1x
Sun, 09 Oct 2022US$3.3tUS$1.5tUS$187.6b15x17.6x2.2x
Tue, 06 Sep 2022US$3.6tUS$1.5tUS$187.7b15.6x19.4x2.5x
Thu, 04 Aug 2022US$3.9tUS$1.5tUS$195.8b17.5x19.9x2.7x
Sat, 02 Jul 2022US$4.3tUS$1.5tUS$213.7b17.2x20.3x3x
Mon, 30 May 2022US$4.6tUS$1.5tUS$216.6b18.3x21.3x3.1x
Wed, 27 Apr 2022US$4.1tUS$1.4tUS$220.9b18.7x18.5x2.8x
Fri, 25 Mar 2022US$4.8tUS$1.4tUS$225.7b18.7x21.1x3.3x
Sun, 20 Feb 2022US$4.6tUS$1.4tUS$225.2b17.6x20.6x3.2x
Price to Earnings Ratio

20.6x


Total Market Cap: US$4.6tTotal Earnings: US$225.2bTotal Revenue: US$1.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 28.5x202320242025
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 28.5x.
  • 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 remained mostly flat 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 and as a result, profits have held steady.

Industry Trends

Which industries have driven the changes within the U.S. Telecom sector?

US Market-0.48%
Telecom0.15%
Wireless Telecom5.11%
Media2.27%
Telecom Services and Carriers2.21%
Entertainment1.51%
Interactive Media and Services-0.92%
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 25.7%, which is higher than its past year's earnings decline of 3.6% 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 26% over the next 5 years.
  • This is better than its past earnings decline of 3.6% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 11% 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
META Meta PlatformsUS$725.381.9%
+US$33.9b		49.9%PE29.5x
TMUS T-Mobile USUS$255.285.3%
+US$14.7b		58.1%PE25.7x
NFLX NetflixUS$1.03k1.6%
+US$6.9b		77.3%PE50.4x
T AT&TUS$25.363.6%
+US$6.4b		50.0%PE16.9x
TTWO Take-Two Interactive SoftwareUS$209.1813.1%
+US$4.4b		34.3%PS6.8x
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