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

U.S. Telecom Sector Analysis

UpdatedFeb 03, 2026
DataAggregated Company Financials
Companies500
  • 7D2.5%
  • 3M11.7%
  • 1Y25.9%
  • YTD5.1%

The Telecom industry is up 2.5% in the last week, with Alphabet up 3.1%. This means that the industry has gained 26% over the past year. 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
Tue, 03 Feb 2026US$8.1tUS$1.7tUS$279.1b16.5x29.1x4.9x
Thu, 01 Jan 2026US$7.8tUS$1.6tUS$282.6b16.2x27.7x4.7x
Sat, 29 Nov 2025US$7.8tUS$1.6tUS$282.5b17.1x27.6x4.8x
Mon, 27 Oct 2025US$7.4tUS$1.6tUS$295.3b17.4x25.1x4.6x
Wed, 24 Sep 2025US$7.6tUS$1.6tUS$286.1b20.5x26.5x4.7x
Fri, 22 Aug 2025US$6.9tUS$1.6tUS$286.7b18.7x24.2x4.3x
Sun, 20 Jul 2025US$6.6tUS$1.6tUS$250.6b17.7x26.3x4.1x
Tue, 17 Jun 2025US$6.4tUS$1.6tUS$250.1b17.2x25.5x4x
Thu, 15 May 2025US$6.0tUS$1.6tUS$248.1b17.7x24.4x3.8x
Sat, 12 Apr 2025US$5.5tUS$1.6tUS$227.2b15.5x24.2x3.5x
Mon, 10 Mar 2025US$6.1tUS$1.6tUS$228.0b16.3x26.6x3.8x
Wed, 05 Feb 2025US$6.6tUS$1.6tUS$210.1b18.1x31.3x4.2x
Fri, 03 Jan 2025US$6.0tUS$1.6tUS$189.8b18.7x31.8x3.8x
Sun, 01 Dec 2024US$5.9tUS$1.6tUS$189.7b20.2x31x3.7x
Tue, 29 Oct 2024US$5.6tUS$1.5tUS$180.7b18.4x31x3.6x
Thu, 26 Sep 2024US$5.5tUS$1.5tUS$188.2b17.9x29.4x3.6x
Sat, 24 Aug 2024US$5.4tUS$1.6tUS$189.3b19.7x28.4x3.5x
Mon, 22 Jul 2024US$5.4tUS$1.5tUS$191.7b17x28x3.5x
Wed, 19 Jun 2024US$5.4tUS$1.5tUS$191.0b16.4x28.4x3.6x
Fri, 17 May 2024US$5.3tUS$1.5tUS$193.9b19.5x27.2x3.5x
Sun, 14 Apr 2024US$5.2tUS$1.5tUS$176.0b18.4x29.6x3.5x
Tue, 12 Mar 2024US$4.8tUS$1.5tUS$173.8b17x27.9x3.2x
Thu, 08 Feb 2024US$4.8tUS$1.5tUS$170.2b13.9x28.5x3.2x
Sat, 06 Jan 2024US$4.6tUS$1.5tUS$128.1b16.3x35.6x3x
Mon, 04 Dec 2023US$4.4tUS$1.5tUS$128.1b16.4x34.5x2.9x
Wed, 01 Nov 2023US$4.1tUS$1.5tUS$126.1b12.6x32.6x2.7x
Fri, 29 Sep 2023US$4.2tUS$1.5tUS$104.7b14.2x40.4x2.8x
Sun, 27 Aug 2023US$4.2tUS$1.5tUS$104.0b13.6x40.1x2.8x
Tue, 25 Jul 2023US$4.2tUS$1.5tUS$107.2b15.2x39x2.8x
Thu, 22 Jun 2023US$4.1tUS$1.5tUS$107.1b17x38.1x2.7x
Sat, 20 May 2023US$4.0tUS$1.5tUS$106.1b17.1x37.6x2.7x
Mon, 17 Apr 2023US$3.8tUS$1.5tUS$115.8b16.7x33.2x2.6x
Wed, 15 Mar 2023US$3.4tUS$1.5tUS$114.8b18.1x29.7x2.3x
Fri, 10 Feb 2023US$3.6tUS$1.5tUS$125.2b19.1x28.8x2.4x
Price to Earnings Ratio

28.8x


Total Market Cap: US$3.6tTotal Earnings: US$125.2bTotal 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 relatively neutral on the American Communication Services industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 30.5x.
  • The 3-year average PS ratio of 3.5x is lower than the industry's current PS ratio of 4.9x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 31% 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-0.35%
Telecom2.48%
Telecom Services and Carriers8.26%
Interactive Media and Services3.30%
Wireless Telecom3.27%
Media-1.82%
Entertainment-3.92%
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 17.0%, which is higher than its past year's earnings decline of 1.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Media industry, expecting annual earnings growth of 24% over the next 5 years.
  • This is better than its past earnings growth rate of 2.0% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 4.9% 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
GOOGL AlphabetUS$343.693.1%
+US$125.9b		70.8%PE33.4x
META Meta PlatformsUS$706.415.1%
+US$92.2b		1.3%PE29.6x
VZ Verizon CommunicationsUS$44.6112.6%
+US$21.1b		11.6%PE11x
T AT&TUS$26.3012.2%
+US$18.8b		8.5%PE8.5x
TMUS T-Mobile USUS$194.993.7%
+US$7.9b		-18.1%PE18.4x

Latest News

DIS
US$104.45
Walt Disney
7D
-6.2%
1Y
-8.4%
PINS
US$22.00
Pinterest
7D
-15.1%
1Y
-33.5%
VZ
US$44.61
Verizon Communications
7D
12.6%
1Y
11.6%

Fiber Expansion And AI Ambitions Will Strain Margins And Limit Upside

Catalysts About Verizon Communications Verizon Communications is a large US telecommunications company that provides wireless, broadband and related services to consumer, business and public sector customers. What are the underlying business or industry changes driving this perspective?
RDDT
US$177.15
Reddit
7D
-17.1%
1Y
-12.4%

The Price Is Right For Reddit, Inc. (NYSE:RDDT) Even After Diving 25%

Feb 01
The Price Is Right For Reddit, Inc. (NYSE:RDDT) Even After Diving 25%
META
US$706.41
Meta Platforms
7D
5.1%
1Y
1.3%

Meta Platforms, Inc. (NASDAQ:META) Just Released Its Annual Results And Analysts Are Updating Their Estimates

Feb 01
Meta Platforms, Inc. (NASDAQ:META) Just Released Its Annual Results And Analysts Are Updating Their Estimates
TMUS
US$194.99
T-Mobile US
7D
3.7%
1Y
-18.1%

TMUS: 5G Network Depth And Cash Returns Will Drive Future Upside

Analysts have reduced their T-Mobile US fair value estimate by about $1.40 to $266.82, reflecting recent price target cuts from several firms, along with ongoing expectations related to revenue growth, profit margins and future P/E levels. Analyst Commentary Recent research on T-Mobile US points to a mixed set of views, with some analysts trimming price targets while others edge them higher.
CHTR
US$213.61
Charter Communications
7D
10.2%
1Y
-37.4%
CMCSA
US$29.59
Comcast
7D
0.5%
1Y
-10.8%
T
US$26.30
AT&T
7D
12.2%
1Y
8.5%
GOOGL
US$343.69
Alphabet
7D
3.1%
1Y
70.8%
LBRD.K
US$49.70
Liberty Broadband
7D
10.2%
1Y
-34.7%

LBRD.K: Higher Future P/E Assumptions Will Support Bullish View On Unchanged Fair Value

Analysts now see Liberty Broadband's fair value at US$77.00 per share, broadly in line with the prior US$77 level. This reflects updated assumptions around discount rate, revenue growth, profit margin and future P/E, while keeping their overall price target view steady.
SATS
US$116.55
EchoStar
7D
-7.4%
1Y
325.2%

SATS: EchoStar Spectrum Deployment And New Capital Division Will Drive Upside

Analysts have lifted their fair value estimate for EchoStar from US$102.00 to US$158.00, pointing to a lower discount rate and a higher assumed future P/E multiple as key drivers of the target change, even though they now factor in a modest revenue decline and essentially stable profit margins. What's in the News AT&T has deployed mid band spectrum acquired from EchoStar to nearly 23,000 cell sites in a few weeks, aiming to lift 5G download speeds by up to 80% for mobility users and 55% for AT&T Internet Air customers across more than 5,300 cities in 48 states (client announcement).
RBLX
US$67.48
Roblox
7D
-8.8%
1Y
-4.5%
BIDU
US$148.57
Baidu
7D
-4.8%
1Y
69.4%
NFLX
US$82.76
Netflix
7D
-3.4%
1Y
-15.5%
TTWO
US$221.81
Take-Two Interactive Software
7D
-9.7%
1Y
19.2%

TTWO: Fair Value View Balances Content Pipeline Hopes And Execution Risks

Analysts have raised their fair value estimate for Take-Two Interactive Software to US$226.19 from US$181.99, reflecting higher assumed revenue growth, margins, and future P/E multiples, in line with recent Street price target increases into the US$280 to US$288 range. Analyst Commentary Recent Street research shows a mix of optimism around Take-Two Interactive Software's content pipeline and cautious views around valuation and execution risk.