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U.S. Telecom Sector Analysis

UpdatedNov 14, 2025
DataAggregated Company Financials
Companies494
  • 7D-2.3%
  • 3M5.7%
  • 1Y27.5%
  • YTD21.7%

Over the last 7 days, the Telecom industry has dropped 2.3%, driven by a pullback from Meta Platforms of 4.7%. In the past year, the industry has gained 28%. As for the next few years, earnings are expected to grow by 12% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 18 Nov 2025US$7.4tUS$1.6tUS$285.3b17.1x26x4.5x
Thu, 16 Oct 2025US$7.3tUS$1.6tUS$286.1b18x25.4x4.5x
Sat, 13 Sep 2025US$7.4tUS$1.6tUS$286.1b20.7x25.8x4.6x
Mon, 11 Aug 2025US$6.9tUS$1.6tUS$285.6b20.7x24.2x4.2x
Wed, 09 Jul 2025US$6.6tUS$1.6tUS$250.2b17.8x26.4x4.1x
Fri, 06 Jun 2025US$6.3tUS$1.6tUS$249.9b17.4x25.3x3.9x
Sun, 04 May 2025US$5.9tUS$1.6tUS$245.7b16.7x24x3.7x
Tue, 01 Apr 2025US$5.7tUS$1.6tUS$227.4b17.8x25x3.6x
Thu, 27 Feb 2025US$6.2tUS$1.6tUS$225.2b17.7x27.6x3.9x
Sat, 25 Jan 2025US$6.3tUS$1.6tUS$190.6b18.8x33.3x4x
Mon, 23 Dec 2024US$6.1tUS$1.6tUS$189.6b17.8x32.2x3.9x
Wed, 20 Nov 2024US$5.9tUS$1.6tUS$189.7b20x31x3.7x
Fri, 18 Oct 2024US$5.6tUS$1.5tUS$188.2b18.5x30x3.7x
Sun, 15 Sep 2024US$5.3tUS$1.5tUS$188.1b18.7x28.2x3.4x
Tue, 13 Aug 2024US$5.3tUS$1.5tUS$189.8b21x27.8x3.4x
Thu, 11 Jul 2024US$5.7tUS$1.5tUS$191.3b17.3x29.6x3.7x
Sat, 08 Jun 2024US$5.4tUS$1.5tUS$191.0b15.3x28.3x3.5x
Mon, 06 May 2024US$5.1tUS$1.5tUS$194.6b18.5x26.3x3.4x
Wed, 03 Apr 2024US$5.1tUS$1.5tUS$176.1b19x29x3.4x
Fri, 01 Mar 2024US$4.8tUS$1.5tUS$174.2b18.2x27.6x3.2x
Sun, 28 Jan 2024US$5.0tUS$1.5tUS$145.5b15.1x34.2x3.3x
Tue, 26 Dec 2023US$4.6tUS$1.5tUS$127.9b15.6x36.3x3x
Thu, 23 Nov 2023US$4.5tUS$1.5tUS$127.3b16.3x35.3x3x
Sat, 21 Oct 2023US$4.3tUS$1.5tUS$102.5b14.9x41.8x2.9x
Mon, 18 Sep 2023US$4.3tUS$1.5tUS$104.4b14.1x41.6x2.9x
Wed, 16 Aug 2023US$4.3tUS$1.5tUS$103.8b14.8x41x2.8x
Fri, 14 Jul 2023US$4.3tUS$1.5tUS$106.8b16.5x40.3x2.9x
Sun, 11 Jun 2023US$4.1tUS$1.5tUS$107.1b15.8x37.9x2.7x
Tue, 09 May 2023US$3.8tUS$1.5tUS$107.0b16x35.5x2.6x
Thu, 06 Apr 2023US$3.8tUS$1.5tUS$115.4b16.8x32.8x2.5x
Sat, 04 Mar 2023US$3.5tUS$1.5tUS$113.7b19.3x31.1x2.4x
Mon, 30 Jan 2023US$3.6tUS$1.5tUS$141.3b19x25.8x2.5x
Wed, 28 Dec 2022US$3.1tUS$1.5tUS$166.4b15.8x18.9x2.1x
Fri, 25 Nov 2022US$3.3tUS$1.5tUS$165.9b18.1x20.1x2.2x
Price to Earnings Ratio

20.1x


Total Market Cap: US$3.3tTotal Earnings: US$165.9bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 30x202320242025
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 26.0x which is lower than its 3-year average PE of 30.0x.
  • The 3-year average PS ratio of 3.3x is lower than the industry's current PS ratio of 4.5x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 20% per year over the last three years.
  • Revenues for these companies have grown 3.1% 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 Market-2.74%
Telecom-2.32%
Wireless Telecom4.31%
Telecom Services and Carriers1.13%
Media-2.08%
Entertainment-2.28%
Interactive Media and Services-2.94%
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 17.3%, which is higher than its past year's earnings decline of 6.2% 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 2.0x.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 17% over the next 5 years.
  • This is better than its past earnings decline of 6.2% 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
TMUS T-Mobile USUS$215.844.8%
+US$11.2b		-8.9%PE20.3x
VZ Verizon CommunicationsUS$41.012.9%
+US$4.9b		-2.9%PE8.7x
T AT&TUS$25.472.6%
+US$4.5b		10.8%PE8.1x
SPOT Spotify TechnologyUS$640.622.8%
+US$3.6b		41.0%PE81.1x
TIGO Millicom International CellularUS$53.539.6%
+US$787.0m		104.3%PE8.1x

Latest News

NIQ
US$14.16
NIQ Global Intelligence
7D
10.7%
1Y
n/a
DIS
US$105.69
Walt Disney
7D
-5.8%
1Y
-6.9%
TMUS
US$215.84
T-Mobile US
7D
4.8%
1Y
-8.9%

TMUS: Expanding 5G Coverage Will Sustain Market Leadership And Business Upside

T-Mobile US saw its average analyst price target edge slightly lower to $275.00 from $275.19, as analysts cite modestly reduced revenue growth and profit margin expectations. This is offset by ongoing optimism around the company's network strengths and market position.
ASTS
US$56.60
AST SpaceMobile
7D
-17.6%
1Y
119.4%
GOOGL
US$285.02
Alphabet
7D
-1.8%
1Y
62.6%

Alphabet will ride the Buffett wave to unlock a higher future P/E valuation

1. Why Berkshire’s Investment Matters to Markets Even though Berkshire’s stake in Google isn’t large relative to Alphabet’s massive market cap, it carries powerful signalling value: Buffett’s “Quality Signal” → Higher Perceived Moat When Berkshire adds a company to its portfolio, markets generally interpret it as: The business has durable competitive advantages Long-term earnings power is strong Management quality is high Shareholder returns are likely to compound predictably For Alphabet, Berkshire’s move reinforces the idea that Google’s moat in AI, Search, YouTube, Android, Maps, and Cloud is still wide, durable, and undervalued relative to long-term earnings.
PSKY
US$15.73
Paramount Skydance
7D
3.1%
1Y
48.3%
NFLX
US$110.29
Netflix
7D
-1.5%
1Y
30.2%
RDDT
US$187.55
Reddit
7D
-8.1%
1Y
44.9%
TME
US$18.90
Tencent Music Entertainment Group
7D
-12.3%
1Y
64.5%

TME: Market Pullback Will Likely Create Compelling Entry Opportunity Ahead

Analysts have modestly lowered their price target for Tencent Music Entertainment Group, reducing it by approximately $0.87 per share. Evolving revenue mix and margin pressures are prompting some caution, even as analysts express continued confidence in the company's growth outlook.
VZ
US$41.01
Verizon Communications
7D
2.9%
1Y
-2.9%

VZ: Future Restructuring Will Drive Transformation and Expand Wireless Market Opportunities

Verizon Communications’ average analyst price target has decreased from $49 to $45. Analysts attribute this modest decline to execution risks amid restructuring efforts and evolving competitive strategies in the wireless market.
META
US$602.01
Meta Platforms
7D
-4.7%
1Y
8.6%

META: AI-Fueled Product Gains Will Outweigh Cost Pressures Ahead

Meta Platforms' fair value estimate has edged lower by approximately $7 to $841. Analysts factor in higher expected capital expenditures and moderation in profit margins, partially offset by ongoing robust revenue growth driven by AI-related advancements.
BIDU
US$114.11
Baidu
7D
-13.8%
1Y
33.6%
TKO
US$184.75
TKO Group Holdings
7D
3.1%
1Y
47.8%

TKO Group Holdings' (NYSE:TKO) Earnings Might Not Be As Promising As They Seem

Nov 12
TKO Group Holdings' (NYSE:TKO) Earnings Might Not Be As Promising As They Seem
SPOT
US$640.62
Spotify Technology
7D
2.8%
1Y
41.0%

We Think Spotify Technology's (NYSE:SPOT) Profit Is Only A Baseline For What They Can Achieve

Nov 11
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TIGO
US$53.53
Millicom International Cellular
7D
9.6%
1Y
104.3%
T
US$25.47
AT&T
7D
2.6%
1Y
10.8%