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U.S. Telecom Sector Analysis

UpdatedApr 04, 2025
DataAggregated Company Financials
Companies478
  • 7D-7.4%
  • 3M-11.0%
  • 1Y8.8%
  • YTD-10.1%

Over the last 7 days, the Telecom industry has dropped 7.4%, driven by a pullback from Meta Platforms of 12%. This takes the industry's 12 month performance to a gain of 8.8%. 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
Sat, 05 Apr 2025US$5.7tUS$1.6tUS$227.3b15.8x25.3x3.6x
Mon, 03 Mar 2025US$6.2tUS$1.6tUS$227.8b16.8x27.2x3.9x
Wed, 29 Jan 2025US$6.4tUS$1.6tUS$200.0b17.2x31.8x4.1x
Fri, 27 Dec 2024US$6.2tUS$1.6tUS$189.6b18.6x32.9x4x
Sun, 24 Nov 2024US$5.8tUS$1.6tUS$189.7b20.1x30.4x3.7x
Tue, 22 Oct 2024US$5.7tUS$1.6tUS$189.2b17.8x29.9x3.6x
Thu, 19 Sep 2024US$5.4tUS$1.5tUS$188.2b18.8x28.6x3.5x
Sat, 17 Aug 2024US$5.3tUS$1.6tUS$189.1b19.3x28.2x3.4x
Mon, 15 Jul 2024US$5.5tUS$1.5tUS$191.2b17.3x28.9x3.6x
Wed, 12 Jun 2024US$5.4tUS$1.5tUS$191.0b16.6x28.2x3.5x
Fri, 10 May 2024US$5.2tUS$1.5tUS$193.5b18.3x26.8x3.4x
Sun, 07 Apr 2024US$5.2tUS$1.5tUS$176.0b19.4x29.3x3.4x
Tue, 05 Mar 2024US$4.8tUS$1.5tUS$173.8b17.7x27.7x3.2x
Thu, 01 Feb 2024US$5.0tUS$1.5tUS$152.7b15.3x32.6x3.2x
Sat, 30 Dec 2023US$4.7tUS$1.5tUS$128.0b15.7x36.4x3.1x
Mon, 27 Nov 2023US$4.5tUS$1.5tUS$128.3b16x35.2x3x
Wed, 25 Oct 2023US$4.3tUS$1.5tUS$102.5b14x42x2.9x
Fri, 22 Sep 2023US$4.2tUS$1.5tUS$104.7b14.4x40.1x2.8x
Sun, 20 Aug 2023US$4.1tUS$1.5tUS$102.8b14.5x40.3x2.8x
Tue, 18 Jul 2023US$4.3tUS$1.5tUS$106.8b16.9x40.1x2.9x
Thu, 15 Jun 2023US$4.1tUS$1.5tUS$107.1b17.1x38.5x2.8x
Sat, 13 May 2023US$3.9tUS$1.5tUS$105.2b17.1x36.9x2.6x
Mon, 10 Apr 2023US$3.8tUS$1.5tUS$115.4b16.6x33.3x2.6x
Wed, 08 Mar 2023US$3.5tUS$1.5tUS$113.7b18.6x30.9x2.4x
Fri, 03 Feb 2023US$3.9tUS$1.5tUS$140.9b19.8x27.8x2.7x
Sun, 01 Jan 2023US$3.2tUS$1.5tUS$166.4b15.2x19.1x2.1x
Tue, 29 Nov 2022US$3.3tUS$1.5tUS$165.9b17.9x19.7x2.2x
Thu, 27 Oct 2022US$3.5tUS$1.5tUS$182.0b15x19x2.3x
Sat, 24 Sep 2022US$3.3tUS$1.5tUS$187.6b14.4x17.7x2.2x
Mon, 22 Aug 2022US$3.9tUS$1.5tUS$186.4b17.6x21x2.6x
Wed, 20 Jul 2022US$2.4tUS$1.5tUS$214.3b15.7x11.1x1.6x
Fri, 17 Jun 2022US$4.2tUS$1.5tUS$214.0b16.3x19.5x2.8x
Sun, 15 May 2022US$4.0tUS$1.5tUS$219.1b17.1x18.2x2.7x
Tue, 12 Apr 2022US$4.5tUS$1.4tUS$223.8b19.9x20.2x3.1x
Price to Earnings Ratio

20.2x


Total Market Cap: US$4.5tTotal Earnings: US$223.8bTotal Revenue: US$1.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 28.8x202320242025
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 25.3x which is lower than its 3-year average PE of 28.8x.
  • The 3-year average PS ratio of 3.0x is lower than the industry's current PS ratio of 3.6x.
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 3.3% 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-5.64%
Telecom-7.38%
Telecom Services and Carriers0.63%
Wireless Telecom-0.28%
Media-5.70%
Entertainment-6.70%
Interactive Media and Services-9.22%
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 24.7%, which is higher than its past year's earnings growth of 21.0% 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 0.35x.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Media industry is expected to see its earnings grow by 9.4% 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
IBTA IbottaUS$44.163.3%
+US$44.1m		n/aPE19.9x
NEXN Nexxen InternationalUS$8.318.9%
+US$43.1m		93.3%PE14.9x
SURG SurgePaysUS$2.3330.2%
+US$11.0m		-40.7%PS0.8x
NCMI National CineMediaUS$5.722.0%
+US$10.5m		6.9%PS2.3x
AREN Arena Group HoldingsUS$1.9013.1%
+US$10.4m		124.3%PS0.4x
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