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U.S. Telecom Sector Analysis

UpdatedMar 22, 2026
DataAggregated Company Financials
Companies485
  • 7D-1.6%
  • 3M-4.8%
  • 1Y28.1%
  • YTD-5.3%

Over the last 7 days, the Telecom industry has dropped 1.6%, driven by a pullback from Meta Platforms of 3.3%. Over the past 12 months, the industry was up 28%. 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
Sun, 22 Mar 2026US$7.3tUS$1.7tUS$272.1b17.9x26.9x4.4x
Tue, 17 Feb 2026US$7.5tUS$1.7tUS$282.6b16.3x26.6x4.5x
Thu, 15 Jan 2026US$7.9tUS$1.6tUS$282.3b16.4x28x4.8x
Sat, 13 Dec 2025US$7.8tUS$1.6tUS$280.9b17.1x27.6x4.7x
Mon, 10 Nov 2025US$7.3tUS$1.6tUS$285.6b18x25.5x4.4x
Wed, 08 Oct 2025US$7.4tUS$1.6tUS$286.1b19.1x25.7x4.6x
Fri, 05 Sep 2025US$7.2tUS$1.6tUS$286.2b21.2x25.2x4.5x
Sun, 03 Aug 2025US$6.7tUS$1.6tUS$270.0b18.5x24.8x4.1x
Tue, 01 Jul 2025US$6.6tUS$1.6tUS$250.0b17.7x26.6x4.1x
Thu, 29 May 2025US$6.2tUS$1.6tUS$249.9b17.5x25x3.9x
Sat, 26 Apr 2025US$5.6tUS$1.6tUS$239.9b17x23.5x3.5x
Mon, 24 Mar 2025US$5.9tUS$1.6tUS$228.0b17.6x25.8x3.7x
Wed, 19 Feb 2025US$6.6tUS$1.6tUS$218.3b19.4x30.3x4.2x
Fri, 17 Jan 2025US$6.2tUS$1.6tUS$189.6b19.5x32.5x3.9x
Sun, 15 Dec 2024US$6.2tUS$1.6tUS$189.8b18.7x32.9x4x
Tue, 12 Nov 2024US$5.9tUS$1.6tUS$188.8b18.7x31.2x3.8x
Thu, 10 Oct 2024US$5.7tUS$1.5tUS$188.2b18.3x30.1x3.7x
Sat, 07 Sep 2024US$5.1tUS$1.6tUS$189.2b18.8x27x3.3x
Mon, 05 Aug 2024US$5.2tUS$1.5tUS$202.5b19.9x25.9x3.4x
Wed, 03 Jul 2024US$5.5tUS$1.5tUS$191.3b15.9x28.7x3.6x
Fri, 31 May 2024US$5.2tUS$1.5tUS$191.0b16.7x27.5x3.4x
Sun, 28 Apr 2024US$5.1tUS$1.5tUS$192.7b17.9x26.5x3.4x
Tue, 26 Mar 2024US$5.1tUS$1.5tUS$175.7b18x28.9x3.4x
Thu, 22 Feb 2024US$4.8tUS$1.5tUS$174.0b16.7x27.7x3.2x
Sat, 20 Jan 2024US$4.8tUS$1.5tUS$128.1b15.2x37.2x3.1x
Mon, 18 Dec 2023US$4.6tUS$1.5tUS$128.0b17.1x35.7x3x
Wed, 15 Nov 2023US$4.3tUS$1.5tUS$125.8b14.1x34.6x2.9x
Fri, 13 Oct 2023US$4.4tUS$1.5tUS$104.7b14.7x42.4x3x
Sun, 10 Sep 2023US$4.3tUS$1.5tUS$104.3b14.1x41.1x2.9x
Tue, 08 Aug 2023US$4.4tUS$1.5tUS$102.9b15.5x42.3x2.9x
Thu, 06 Jul 2023US$4.2tUS$1.5tUS$107.0b17x39.1x2.8x
Sat, 03 Jun 2023US$4.1tUS$1.5tUS$107.4b14.8x37.8x2.7x
Mon, 01 May 2023US$3.8tUS$1.5tUS$113.1b16.4x33.9x2.6x
Wed, 29 Mar 2023US$3.7tUS$1.5tUS$115.7b16.1x31.6x2.5x
Price to Earnings Ratio

31.6x


Total Market Cap: US$3.7tTotal Earnings: US$115.7bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 30.4x202420252026
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 26.9x which is lower than its 3-year average PE of 30.4x.
  • The 3-year average PS ratio of 3.6x 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 33% per year over the last three years.
  • Revenues for these companies have grown 4.1% 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-1.83%
Telecom-1.65%
Telecom Services and Carriers-0.78%
Interactive Media and Services-1.30%
Media-1.78%
Entertainment-3.30%
Wireless Telecom-4.00%
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 19.4%, which is higher than its past year's earnings decline of 4.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Media industry, expecting annual earnings growth of 29% over the next 5 years.
  • This is better than its past earnings decline of 0.02% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 7.9% 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
T AT&TUS$28.312.1%
+US$4.1b		4.8%PE9.1x
RDDT RedditUS$139.855.7%
+US$1.4b		20.9%PE50.4x
ASTS AST SpaceMobileUS$89.934.2%
+US$1.1b		249.8%PS371.1x
WBD Warner Bros. DiscoveryUS$27.421.0%
+US$694.7m		155.3%PE93.4x
SATS EchoStarUS$109.841.4%
+US$433.3m		315.1%PS2.1x

Latest News

SATS
US$109.84
EchoStar
7D
1.4%
1Y
315.1%
RDDT
US$139.85
Reddit
7D
5.7%
1Y
20.9%

RDDT: Future Upside Will Rely On AI Data Licensing Economics

Reddit's updated fair value estimate has been trimmed from $252.39 to $232.05 as analysts factor in slightly lower revenue growth assumptions, a more moderate future P/E, and survey backed views on monetization potential that still highlight advertiser reach and low funnel targeting as key positives. Analyst Commentary Street research on Reddit has become more balanced, with many firms trimming price targets while still highlighting meaningful upside drivers in engagement, monetization, and data licensing.
RBLX
US$56.96
Roblox
7D
1.0%
1Y
-6.9%
TMUS
US$208.47
T-Mobile US
7D
-4.1%
1Y
-18.5%
TME
US$10.09
Tencent Music Entertainment Group
7D
-28.9%
1Y
-27.9%

TME: Core Paying Users And K Content Will Support Future Recovery

Analysts have trimmed their price targets on Tencent Music Entertainment Group, with the updated fair value estimate moving from about $30.90 to $29.33 as they factor in reduced revenue growth assumptions, a higher discount rate, and sector wide target cuts and downgrades that highlight competitive pressures and softer near term visibility. Analyst Commentary Recent research on Tencent Music Entertainment Group reflects a cautious tone overall, with several firms trimming price targets or moving to more neutral ratings as they reassess competitive risks and shorter term earnings visibility.
CMCSA
US$29.02
Comcast
7D
-3.8%
1Y
-21.0%

CMCSA: Fiber Headwinds And Versant Spin Off Will Reframe Earnings Power

Analysts have trimmed their fair value estimate for Comcast to $33.01 from $33.93, reflecting lower assumed revenue growth and profit margins, a slightly higher discount rate, and recent Street price target cuts tied to fiber competition and the Versant spin off, partially offset by a few modest target increases. Analyst Commentary Street research on Comcast has become more divided, with several price target cuts and downgrades offset by a smaller number of upgrades and modest target increases.
DIS
US$99.51
Walt Disney
7D
0.2%
1Y
0.05%

DIS: IP Strength And New Leadership Will Support Future Share Repricing

Narrative Update on Walt Disney The updated analyst price target for Walt Disney edges slightly lower to about $130. This reflects small adjustments to fair value and discount rate as analysts factor in recent target cuts from firms that still cite solid execution and the strength of the company’s intellectual property and multi platform engagement.
NFLX
US$91.82
Netflix
7D
-3.7%
1Y
-4.4%

NFLX: Walking From Warner Deal Will Refocus On Content And Efficiency

Analysts have modestly increased the blended price target for Netflix by about $2 to reflect updated views on content investment, operating efficiency and valuation multiples after the company opted out of a Warner Bros. Discovery deal.
SPOT
US$474.54
Spotify Technology
7D
-8.0%
1Y
-20.9%

SPOT: Recurring Price Hikes And Firmer Margins Will Support Revaluation Potential

Spotify's analyst fair value estimate has been adjusted from $889.24 to $767.84 as analysts factor in slightly higher discount rates and a lower future P/E, partly offset by firmer margin expectations and views that AI related risks to the platform and its pricing power are limited. Analyst Commentary Recent research on Spotify highlights a split view on AI risk and pricing power, but there is a clear cluster of bullish analysts who still see upside in the story despite a period of target cuts across the Street.
PINS
US$18.68
Pinterest
7D
2.8%
1Y
-42.4%

PINS: GenAI Advertising Tools Will Drive Future Rerating Potential

Analysts have reduced their average price target on Pinterest to about $37 from roughly $47. This reflects more cautious assumptions on revenue growth, profitability and long-term P/E multiples, as they factor in higher costs, tougher ad competition and limited near-term margin expansion.
GOOGL
US$301.00
Alphabet
7D
-0.4%
1Y
83.5%

GOOGL: AI Partnerships And Compute Capacity Will Support Long Term Upside

Analysts have slightly increased their price target for Alphabet to about $377, reflecting broad Street support for the company's position in AI data, distribution, and compute, as well as recent partnership momentum around Gemini with major technology and retail platforms. Analyst Commentary Recent research points to a clear skew toward optimism on Alphabet, especially around its AI positioning, cloud trajectory, and a growing set of high profile partnerships.
T
US$28.31
AT&T
7D
2.1%
1Y
4.8%

T: Future Returns Will Be Pressured By Rich P/E Versus Fundamentals

Analysts have raised AT&T's price target to $25.11 from $23.24, reflecting updated assumptions that include slightly higher revenue growth, a modest change in the discount rate, a small adjustment to profit margin expectations, and a higher future P/E multiple. What's in the News AT&T introduced updated Unlimited Your Way wireless plans, including the new AT&T Value 2.0 entry level option, offering mix and match flexibility, more high speed data, and features such as ActiveArmor and unlimited talk, text, and data across the U.S., Canada, and Mexico (Product related announcement).
META
US$593.66
Meta Platforms
7D
-3.3%
1Y
-0.4%
VZ
US$49.98
Verizon Communications
7D
-2.7%
1Y
13.6%

VZ: Fair Value View Will Reflect Cost Cuts And Execution Risks

Narrative Update: Verizon Communications The analyst price target for Verizon Communications edges higher to approximately $50.00, up by a small fraction. Analysts point to firming trends in subscriber additions, cost efficiencies and broadband growth, which are reflected in a slightly higher fair value estimate and a modestly higher assumed future P/E of about 12x.
WBD
US$27.42
Warner Bros. Discovery
7D
1.0%
1Y
155.3%
ASTS
US$89.93
AST SpaceMobile
7D
4.2%
1Y
249.8%