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U.S. Telecom Sector Analysis
UpdatedNov 26, 2024
DataAggregated Company Financials
Companies456
- 7D-0.1%
- 3M9.3%
- 1Y36.7%
- YTD33.7%
In the last week, the Telecom industry is flat overall, with Alphabet standing out by going down 4.4%. As for the the longer term, the industry is up 37% over the past 12 months. As for the next few years, earnings are expected to grow by 15% per annum.
Sector Valuation and Performance
Has the U.S. Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 26 Nov 2024 | US$5.7t | US$1.6t | US$189.7b | 19.7x | 30.3x | 3.7x |
| Thu, 24 Oct 2024 | US$5.6t | US$1.5t | US$179.8b | 18.4x | 31.2x | 3.7x |
| Sat, 21 Sep 2024 | US$5.5t | US$1.5t | US$188.2b | 18.1x | 29.1x | 3.6x |
| Mon, 19 Aug 2024 | US$5.3t | US$1.6t | US$189.1b | 18.8x | 28.2x | 3.4x |
| Wed, 17 Jul 2024 | US$5.5t | US$1.5t | US$191.1b | 18.9x | 29x | 3.6x |
| Fri, 14 Jun 2024 | US$5.4t | US$1.5t | US$191.0b | 16.4x | 28.1x | 3.5x |
| Sun, 12 May 2024 | US$5.2t | US$1.5t | US$193.7b | 18.5x | 26.8x | 3.4x |
| Tue, 09 Apr 2024 | US$5.2t | US$1.5t | US$176.0b | 19.1x | 29.3x | 3.4x |
| Thu, 07 Mar 2024 | US$4.8t | US$1.5t | US$173.7b | 16.7x | 27.5x | 3.2x |
| Sat, 03 Feb 2024 | US$5.0t | US$1.5t | US$161.9b | 14.8x | 31x | 3.3x |
| Mon, 01 Jan 2024 | US$4.6t | US$1.5t | US$128.1b | 15.7x | 36.2x | 3x |
| Wed, 29 Nov 2023 | US$4.5t | US$1.5t | US$128.3b | 15.7x | 35.1x | 3x |
| Fri, 27 Oct 2023 | US$4.0t | US$1.5t | US$125.9b | 13.2x | 32.1x | 2.7x |
| Sun, 24 Sep 2023 | US$4.2t | US$1.5t | US$104.7b | 14.1x | 40.1x | 2.8x |
| Tue, 22 Aug 2023 | US$4.1t | US$1.5t | US$102.8b | 14.4x | 40.3x | 2.8x |
| Thu, 20 Jul 2023 | US$4.3t | US$1.5t | US$107.1b | 15.8x | 40x | 2.9x |
| Sat, 17 Jun 2023 | US$4.2t | US$1.5t | US$107.1b | 17.4x | 38.7x | 2.8x |
| Mon, 15 May 2023 | US$3.9t | US$1.5t | US$105.2b | 16.3x | 36.9x | 2.6x |
| Wed, 12 Apr 2023 | US$3.8t | US$1.5t | US$115.8b | 16.9x | 32.8x | 2.6x |
| Fri, 10 Mar 2023 | US$3.4t | US$1.5t | US$115.0b | 17.7x | 29.9x | 2.3x |
| Sun, 05 Feb 2023 | US$3.8t | US$1.5t | US$136.3b | 19.7x | 28x | 2.6x |
| Tue, 03 Jan 2023 | US$3.2t | US$1.5t | US$166.4b | 15.2x | 19.1x | 2.1x |
| Thu, 01 Dec 2022 | US$3.4t | US$1.5t | US$166.6b | 18.4x | 20.6x | 2.3x |
| Sat, 29 Oct 2022 | US$3.3t | US$1.5t | US$168.0b | 15.7x | 19.4x | 2.2x |
| Mon, 26 Sep 2022 | US$3.3t | US$1.5t | US$187.6b | 14.4x | 17.7x | 2.2x |
| Wed, 24 Aug 2022 | US$3.8t | US$1.5t | US$186.8b | 16.8x | 20.3x | 2.6x |
| Fri, 22 Jul 2022 | US$3.9t | US$1.5t | US$214.4b | 17x | 18.3x | 2.7x |
| Sun, 19 Jun 2022 | US$4.2t | US$1.5t | US$214.0b | 16.9x | 19.7x | 2.9x |
| Tue, 17 May 2022 | US$4.0t | US$1.5t | US$218.1b | 17.2x | 18.1x | 2.7x |
| Thu, 14 Apr 2022 | US$4.6t | US$1.4t | US$224.8b | 21.3x | 20.5x | 3.2x |
| Sat, 12 Mar 2022 | US$4.4t | US$1.4t | US$225.8b | 16.7x | 19.4x | 3x |
| Mon, 07 Feb 2022 | US$4.9t | US$1.4t | US$218.4b | 19.7x | 22.7x | 3.5x |
| Wed, 05 Jan 2022 | US$5.5t | US$1.4t | US$194.6b | 20x | 28.1x | 3.9x |
| Fri, 03 Dec 2021 | US$5.3t | US$1.4t | US$194.5b | 19.2x | 27.4x | 3.8x |
Price to Earnings Ratio
27.4x
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 28.1x.
- The 3-year average PS ratio of 3.0x is lower than the industry's current PS ratio of 3.7x.
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 4.0% 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 | 2.16% | |
| Telecom | -0.14% | |
| Media | 3.17% | |
| Entertainment | 2.59% | |
| Telecom Services and Carriers | 2.40% | |
| Wireless Telecom | 1.34% | |
| Interactive Media and Services | -1.64% | |
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 27.1%, which is higher than its past year's earnings decline of 13.9% per year.
- Investors are most pessimistic about the Interactive Media and Services industry, which is trading close to its 3-year average of 25.7x.
Forecasted Growth
- Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 27% over the next 5 years.
- This is better than its past earnings decline of 14% per year.
- In contrast, the Interactive Media and Services industry is expected to see its earnings grow by 12% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| META Meta Platforms | US$565.11 | 1.9% +US$27.0b | 68.8% | PE25.7x | |
| NFLX Netflix | US$865.59 | 2.2% +US$7.9b | 80.6% | PE47.6x | |
| VZ Verizon Communications | US$43.98 | 4.1% +US$7.3b | 17.8% | PE18.9x | |
| TTD Trade Desk | US$129.35 | 10.3% +US$6.0b | 86.9% | PE207.2x | |
| SPOT Spotify Technology | US$481.38 | 5.9% +US$5.5b | 163.0% | PE132.2x |
