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

U.S. Telecom Sector Analysis

UpdatedJun 01, 2026
DataAggregated Company Financials
Companies481
  • 7D0.2%
  • 3M9.4%
  • 1Y36.6%
  • YTD8.0%

The Telecom is pretty flat in the last 7 days, but Reddit has stood out, gaining 26%. The past year has been better, since the industry has gained 37% in that time. Looking forward, 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
Tue, 02 Jun 2026US$8.3tUS$1.7tUS$308.9b16.9x27x4.8x
Thu, 30 Apr 2026US$8.1tUS$1.7tUS$273.2b17.7x29.5x4.8x
Sat, 28 Mar 2026US$6.8tUS$1.7tUS$272.8b16x25x4.1x
Mon, 23 Feb 2026US$7.7tUS$1.7tUS$275.7b15.5x27.8x4.6x
Wed, 21 Jan 2026US$7.8tUS$1.7tUS$282.1b15.9x27.7x4.7x
Fri, 19 Dec 2025US$7.5tUS$1.6tUS$280.9b17x26.9x4.6x
Sun, 16 Nov 2025US$7.2tUS$1.6tUS$285.5b17x25.3x4.4x
Tue, 14 Oct 2025US$7.2tUS$1.6tUS$286.1b18.1x25x4.4x
Thu, 11 Sep 2025US$7.4tUS$1.6tUS$286.1b20.4x25.9x4.6x
Sat, 09 Aug 2025US$6.9tUS$1.6tUS$285.2b20.7x24.2x4.2x
Mon, 07 Jul 2025US$6.6tUS$1.6tUS$250.2b18.1x26.6x4.1x
Wed, 04 Jun 2025US$6.3tUS$1.6tUS$249.9b17.2x25.1x3.9x
Fri, 02 May 2025US$5.7tUS$1.6tUS$244.7b17x23.3x3.6x
Sun, 30 Mar 2025US$5.7tUS$1.6tUS$227.4b17.3x25x3.6x
Tue, 25 Feb 2025US$6.3tUS$1.6tUS$225.2b19.1x28.2x4x
Thu, 23 Jan 2025US$6.2tUS$1.6tUS$190.6b18.7x32.8x4x
Sat, 21 Dec 2024US$6.1tUS$1.6tUS$189.6b17.8x32x3.9x
Mon, 18 Nov 2024US$5.8tUS$1.6tUS$189.7b19.4x30.4x3.7x
Wed, 16 Oct 2024US$5.7tUS$1.5tUS$188.2b18.3x30.1x3.7x
Fri, 13 Sep 2024US$5.2tUS$1.5tUS$188.1b18.5x27.4x3.3x
Sun, 11 Aug 2024US$5.3tUS$1.5tUS$189.9b20.2x27.8x3.4x
Tue, 09 Jul 2024US$5.7tUS$1.5tUS$191.3b17.3x29.8x3.7x
Thu, 06 Jun 2024US$5.3tUS$1.5tUS$191.0b15.4x27.8x3.5x
Sat, 04 May 2024US$5.1tUS$1.5tUS$194.4b18.5x26.2x3.3x
Mon, 01 Apr 2024US$5.1tUS$1.5tUS$176.2b18.8x28.7x3.4x
Wed, 28 Feb 2024US$4.8tUS$1.5tUS$174.3b19x27.5x3.2x
Fri, 26 Jan 2024US$4.9tUS$1.5tUS$145.0b14.9x33.6x3.2x
Sun, 24 Dec 2023US$4.6tUS$1.5tUS$127.9b15.6x36.3x3x
Tue, 21 Nov 2023US$4.5tUS$1.5tUS$127.2b16.3x35.1x2.9x
Thu, 19 Oct 2023US$4.3tUS$1.5tUS$104.7b15.2x41.4x2.9x
Sat, 16 Sep 2023US$4.3tUS$1.5tUS$104.4b14.5x41.6x2.9x
Mon, 14 Aug 2023US$4.3tUS$1.5tUS$102.5b15.6x41.7x2.9x
Wed, 12 Jul 2023US$4.1tUS$1.5tUS$106.8b16.6x38.8x2.8x
Fri, 09 Jun 2023US$4.1tUS$1.5tUS$107.1b15.8x37.8x2.7x
Price to Earnings Ratio

37.8x


Total Market Cap: US$4.1tTotal Earnings: US$107.1bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 30x202420252026
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 27.0x which is lower than its 3-year average PE of 30.0x.
  • 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 42% per year over the last three years.
  • Revenues for these companies have grown 5.1% 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 Market1.58%
Telecom0.19%
Interactive Media and Services0.57%
Media0.49%
Telecom Services and Carriers-0.54%
Entertainment-1.40%
Wireless Telecom-1.75%
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 21.5%, which is higher than its past year's earnings decline of 2.0% per year.
Forecasted Growth
  • Analysts are most optimistic on the Media industry, expecting annual earnings growth of 37% over the next 5 years.
  • This is better than its past earnings growth rate of 1.1% per year.
  • In contrast, the Wireless Telecom 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
RDDT RedditUS$177.8525.5%
+US$7.0b		58.6%PE48.4x
BIDU BaiduUS$132.403.6%
+US$1.6b		59.4%PE779.4x
TKO TKO Group HoldingsUS$208.478.9%
+US$1.3b		30.7%PE69x
LUMN Lumen TechnologiesUS$10.6012.6%
+US$1.2b		175.3%PS0.9x
FOXA FoxUS$66.814.4%
+US$1.2b		21.2%PE16.4x

Latest News

GOOGL
US$376.37
Alphabet
7D
-1.7%
1Y
122.7%
META
US$600.47
Meta Platforms
7D
-1.6%
1Y
-10.5%
VZ
US$47.73
Verizon Communications
7D
-1.3%
1Y
8.2%
FOXA
US$66.81
Fox
7D
4.4%
1Y
21.2%
Narrative Update • Jun 01

FOXA: Live Events And Streaming Momentum Will Support Higher Earnings Power

Analysts have nudged their average price target for Fox higher, with the fair value estimate moving from about $71.00 to roughly $73.88, citing updated assumptions around revenue growth, profit margins, discount rates, and future P/E expectations. Analyst Commentary Recent research updates point to a cluster of higher price targets for Fox, with several firms lifting their fair value estimates by US$1 to US$9.
RDDT
US$177.85
Reddit
7D
25.5%
1Y
58.6%
PINS
US$21.35
Pinterest
7D
10.7%
1Y
-33.1%
LUMN
US$10.60
Lumen Technologies
7D
12.6%
1Y
175.3%
T
US$24.55
AT&T
7D
-2.8%
1Y
-12.1%
BIDU
US$132.40
Baidu
7D
3.6%
1Y
59.4%
SPOT
US$507.76
Spotify Technology
7D
-2.3%
1Y
-24.4%
NFLX
US$85.85
Netflix
7D
-3.1%
1Y
-29.6%
Seeking Alpha • May 28

Netflix: Ad Empire Story Is Too Good To Ignore

Summary Netflix is upgraded to strong buy, driven by the maturing and scalable ad business that enhances ARPU and engagement. NFLX targets $3 billion in ad revenue by 2026, with ads projected to represent 6% of total revenue and significant future upside. Ad-tier users expand the membership base, offer high LTV/CAC dynamics, and create optionality for upselling and ancillary revenue streams. Despite execution and competition risks, NFLX’s moat, pricing power, and compounding EPS growth provide a compelling margin of safety. Read the full article on Seeking Alpha
TMUS
US$186.74
T-Mobile US
7D
-2.5%
1Y
-23.2%
TKO
US$208.47
TKO Group Holdings
7D
8.9%
1Y
30.7%
LYV
US$170.45
Live Nation Entertainment
7D
3.0%
1Y
23.0%
TME
US$9.50
Tencent Music Entertainment Group
7D
7.8%
1Y
-45.3%
WMG
US$31.13
Warner Music Group
7D
-10.3%
1Y
19.9%