Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Telecom Sector Analysis

UpdatedFeb 19, 2026
DataAggregated Company Financials
Companies498
  • 7D-2.4%
  • 3M3.5%
  • 1Y17.5%
  • YTD-3.3%

Over the last 7 days, the Telecom industry has dropped 2.4%, driven by Alphabet declining 2.5%. This takes the industry's 12 month performance to a gain of 18%. Looking forward, 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
Fri, 20 Feb 2026US$7.5tUS$1.7tUS$277.4b16.9x27x4.5x
Sun, 18 Jan 2026US$7.8tUS$1.6tUS$282.2b16x27.7x4.8x
Tue, 16 Dec 2025US$7.7tUS$1.6tUS$280.9b17x27.4x4.7x
Thu, 13 Nov 2025US$7.5tUS$1.6tUS$285.2b17.9x26.3x4.6x
Sat, 11 Oct 2025US$7.2tUS$1.6tUS$286.1b17.6x25.2x4.5x
Mon, 08 Sep 2025US$7.3tUS$1.6tUS$286.2b21x25.6x4.5x
Wed, 06 Aug 2025US$6.9tUS$1.6tUS$270.7b18.5x25.4x4.2x
Fri, 04 Jul 2025US$6.6tUS$1.6tUS$250.4b18.1x26.6x4.2x
Sun, 01 Jun 2025US$6.2tUS$1.6tUS$249.8b17.8x24.8x3.9x
Tue, 29 Apr 2025US$5.7tUS$1.6tUS$240.0b17x23.6x3.6x
Thu, 27 Mar 2025US$6.0tUS$1.6tUS$227.9b18x26.4x3.8x
Sat, 22 Feb 2025US$6.4tUS$1.6tUS$225.2b20.4x28.2x4x
Mon, 20 Jan 2025US$6.2tUS$1.6tUS$189.6b19x32.6x3.9x
Wed, 18 Dec 2024US$6.3tUS$1.6tUS$189.7b18.7x33.3x4x
Fri, 15 Nov 2024US$5.9tUS$1.6tUS$189.4b19.4x31.3x3.8x
Sun, 13 Oct 2024US$5.6tUS$1.5tUS$188.2b18.6x30x3.7x
Tue, 10 Sep 2024US$5.1tUS$1.5tUS$191.2b18.8x26.7x3.3x
Thu, 08 Aug 2024US$5.1tUS$1.5tUS$201.9b20.2x25.4x3.3x
Sat, 06 Jul 2024US$5.6tUS$1.5tUS$191.3b16.5x29.1x3.7x
Mon, 03 Jun 2024US$5.3tUS$1.5tUS$191.0b16.4x27.6x3.5x
Wed, 01 May 2024US$4.9tUS$1.5tUS$193.3b17.5x25.6x3.2x
Fri, 29 Mar 2024US$5.1tUS$1.5tUS$175.8b18.9x28.8x3.4x
Sun, 25 Feb 2024US$4.9tUS$1.5tUS$175.3b18.3x27.9x3.3x
Tue, 23 Jan 2024US$4.8tUS$1.5tUS$128.1b14.8x37.3x3.1x
Thu, 21 Dec 2023US$4.6tUS$1.5tUS$127.9b16.1x36x3x
Sat, 18 Nov 2023US$4.5tUS$1.5tUS$127.2b15.4x35.2x2.9x
Mon, 16 Oct 2023US$4.3tUS$1.5tUS$104.7b14.9x41.3x2.9x
Wed, 13 Sep 2023US$4.4tUS$1.5tUS$104.4b13.6x41.8x2.9x
Fri, 11 Aug 2023US$4.3tUS$1.5tUS$102.6b15.2x41.9x2.9x
Sun, 09 Jul 2023US$4.1tUS$1.5tUS$106.8b17.2x38.6x2.8x
Tue, 06 Jun 2023US$4.1tUS$1.5tUS$107.4b16.2x37.8x2.7x
Thu, 04 May 2023US$3.7tUS$1.5tUS$110.7b16.9x33.9x2.5x
Sat, 01 Apr 2023US$3.8tUS$1.5tUS$115.4b17.5x32.7x2.5x
Mon, 27 Feb 2023US$3.4tUS$1.5tUS$115.4b18.7x29.6x2.3x
Price to Earnings Ratio

29.6x


Total Market Cap: US$3.4tTotal Earnings: US$115.4bTotal 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 pessimistic on the American Communication Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 26.4x which is lower than its 3-year average PE of 30.5x.
  • The 3-year average PS ratio of 3.5x is lower than the industry's current PS ratio of 4.4x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 35% per year over the last three years.
  • Revenues for these companies have grown 4.3% 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-0.74%
Telecom-2.38%
Wireless Telecom1.57%
Media-0.29%
Entertainment-1.26%
Telecom Services and Carriers-2.13%
Interactive Media and Services-2.87%
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 15.5%, which is higher than its past year's earnings decline of 6.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Media industry, expecting annual earnings growth of 26% over the next 5 years.
  • This is better than its past earnings decline of 2.8% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 3.6% 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
SPOT Spotify TechnologyUS$485.298.9%
+US$8.1b		-23.8%PE38.4x
DIS Walt DisneyUS$106.003.5%
+US$6.4b		-4.1%PE15.3x
NFLX NetflixUS$77.001.5%
+US$4.8b		-24.8%PE29.6x
OMC Omnicom GroupUS$80.9420.3%
+US$4.3b		-3.2%PE19.1x
RDDT RedditUS$146.1311.5%
+US$2.9b		-16.7%PE52.7x

Latest News

ASTS
US$86.40
AST SpaceMobile
7D
5.1%
1Y
173.2%
OMC
US$80.94
Omnicom Group
7D
20.3%
1Y
-3.2%
PINS
US$16.77
Pinterest
7D
-9.5%
1Y
-57.6%
CMCSA
US$31.38
Comcast
7D
-0.6%
1Y
-13.4%

CMCSA: Future Returns Will Hinge On Risky Warner Bros Bid Uncertainty

Comcast's analyst price targets have edged lower overall, with several firms trimming their views by $1 to $4 as they factor in the Versant spin off and lingering pressure in legacy pay TV. This is partly offset by at least one small upward revision of $0.21 tied to more constructive views on the core business.
DIS
US$106.00
Walt Disney
7D
3.5%
1Y
-4.1%

DIS: IP Monetization And Upcoming Leadership Transition Will Drive Future Share Repricing

Analysts have made a modest upward adjustment to their Walt Disney fair value estimate, with the price target moving by about $0.12. They are factoring in slightly higher expected revenue growth, a marginally lower discount rate, and a somewhat higher future P/E assumption, despite a small trim to projected profit margins, supported by recent research that highlights solid early fiscal-year results and the company's ability to monetize its intellectual property across platforms.
NFLX
US$77.00
Netflix
7D
1.5%
1Y
-24.8%

NFLX: Shares Should Benefit As Warner Asset Bid Expands Content Scale

Analysts have trimmed their fair value estimate for Netflix to $111.43 from $134.44, reflecting lower future P/E expectations around $30.78 and slightly softer revenue growth assumptions, even as they factor in marginally higher profit margins and mixed reactions to potential Warner Bros. assets and recent advertising momentum.
SPOT
US$485.29
Spotify Technology
7D
8.9%
1Y
-23.8%

SPOT: 2026 U.S. Price Hike Will Offset Rising AI Subscription Risk

Analysts have trimmed their average price target on Spotify, reflected in a lower fair value estimate of $662.14 from $733.44, as they factor in higher perceived AI related risk to paid streaming, modestly softer growth assumptions, a richer discount rate, and a more conservative future P/E multiple, despite higher projected profit margins. Analyst Commentary Recent research on Spotify Technology points to a mixed but highly engaged analyst backdrop, with multiple firms revisiting their models around AI risk, pricing, and execution on product initiatives.
BIDU
US$137.11
Baidu
7D
-0.9%
1Y
52.9%

BIDU: AI Cloud And Chip Spinoff Are Expected To Reprice Shares

The analyst fair value estimate for Baidu has moved from $151.99 to $176.93, as analysts point to a higher assumed future P/E multiple and a growing emphasis on Baidu's AI and chip assets, including the Kunlun business and cloud, supported by a series of recent price target raises and upgrades. Analyst Commentary Recent Street research on Baidu has turned more constructive, with several firms lifting price targets and, in some cases, upgrading ratings as they reassess the value of Baidu's AI, cloud, and chip assets.
GOOGL
US$302.85
Alphabet
7D
-0.9%
1Y
68.6%

GOOGL: AI Partnerships And Easing Regulation Will Support Multi Year Re Rating

The analyst price target for Alphabet has been updated from $415.20 to $443.00. This reflects analysts' use of slightly lower discount rates, higher revenue growth and profit margin assumptions, and a modestly lower future P/E multiple supported by recent Street research highlighting Gemini partnerships and AI monetization potential.
T
US$27.88
AT&T
7D
-3.2%
1Y
6.6%

T: Future Returns Will Be Constrained By Lower Expected P/E Multiple

Analysts have adjusted their AT&T price target from $26.00 to about $23.24. This reflects updated views on fair value, discount rate, revenue growth, profit margins, and future P/E expectations.
FWON.K
US$90.11
Formula One Group
7D
6.3%
1Y
-7.9%

FWON.K: Third Party Race Promotion And 2026 Deals Will Drive Upside

Analysts have nudged their fair value estimate for Formula One Group down from about $139 to $135. This reflects slightly higher discount rate assumptions, more cautious revenue growth expectations, and a lower future P/E multiple, partly offset by stronger projected profit margins and recent positive research that includes higher price targets and an upgrade to Outperform.
META
US$644.78
Meta Platforms
7D
-0.8%
1Y
-7.2%

The Superintelligence Pivot: Meta’s $135 Billion Bet on the Energy-Compute Nexus

Meta is currently the most debated stock in the "Magnificent Seven." After the "Year of Efficiency" in 2023, Zuckerberg has flipped the script, entering a "Year of Superintelligence." The narrative for 2026 is a race between two forces: Margin Compression (due to $100B+ in capex depreciation) and Ad-Tech Industrialization (AI-driven ads that convert at 3x the legacy rate). While the "Fair Value" sits at $556 , institutional investors are hesitant to sell because Meta’s Family of Apps (DAP: 3.58 Billion) provides a "user moat" that no other AI company can match.
TTWO
US$201.37
Take-Two Interactive Software
7D
5.8%
1Y
-6.4%

TTWO: GenAI Efficiency And GPU Adoption Will Drive Future Repricing

Analysts have raised their implied fair value estimate for Take-Two Interactive Software from $275.00 to $301.00, citing recent price target increases across the Street along with updated assumptions for discount rate, revenue growth, profit margin, and future P/E multiples. Analyst Commentary Recent Street research around Take-Two Interactive Software has leaned constructive, with several bullish analysts revisiting their models, price targets, and ratings in light of updated assumptions on growth, profitability, and valuation multiples.
VZ
US$48.64
Verizon Communications
7D
-0.8%
1Y
13.8%

Verizon Communications Inc. (NYSE:VZ) Stock Rockets 26% But Many Are Still Ignoring The Company

Feb 16
Verizon Communications Inc. (NYSE:VZ) Stock Rockets 26% But Many Are Still Ignoring The Company
CHTR
US$231.54
Charter Communications
7D
-2.7%
1Y
-36.2%

Charter Communications, Inc. (NASDAQ:CHTR) Stock Rockets 26% But Many Are Still Ignoring The Company

Feb 15
Charter Communications, Inc. (NASDAQ:CHTR) Stock Rockets 26% But Many Are Still Ignoring The Company
RDDT
US$146.13
Reddit
7D
11.5%
1Y
-16.7%