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U.S. Telecom Sector Analysis

UpdatedAug 30, 2026
DataAggregated Company Financials
Companies473
  • 7D1.8%
  • 3M-6.4%
  • 1Y11.1%
  • YTD-3.0%

In the last week, the Telecom industry is up 1.8%, with Meta Platforms leading the way, up 5.1%. During this same period, the AST SpaceMobile underperformed, falling 15%. In the last 12 months, the industry was up 11%. Earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

Has the U.S. Telecom Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 31 Aug 2026US$9.8tUS$1.8tUS$384.8b18.8x25.4x5.5x
Wed, 29 Jul 2026US$9.0tUS$1.8tUS$378.8b18.7x23.8x5.1x
Fri, 26 Jun 2026US$9.6tUS$1.7tUS$300.7b17.2x32x5.5x
Sun, 24 May 2026US$8.3tUS$1.7tUS$310.8b17.1x26.8x4.8x
Tue, 21 Apr 2026US$8.1tUS$1.7tUS$274.7b17.1x29.6x4.8x
Thu, 19 Mar 2026US$7.6tUS$1.7tUS$271.9b17.8x27.9x4.5x
Sat, 14 Feb 2026US$7.6tUS$1.7tUS$282.6b16.3x26.7x4.5x
Mon, 12 Jan 2026US$7.9tUS$1.6tUS$282.3b16.8x28.1x4.8x
Wed, 10 Dec 2025US$7.8tUS$1.6tUS$281.0b16.2x27.8x4.8x
Fri, 07 Nov 2025US$7.4tUS$1.6tUS$285.1b18x25.9x4.5x
Sun, 05 Oct 2025US$7.3tUS$1.6tUS$286.1b18.9x25.5x4.5x
Tue, 02 Sep 2025US$7.1tUS$1.6tUS$287.3b21.3x24.7x4.3x
Thu, 31 Jul 2025US$6.7tUS$1.6tUS$256.3b18.4x26x4.1x
Sat, 28 Jun 2025US$6.6tUS$1.6tUS$250.2b17.4x26.2x4.1x
Mon, 26 May 2025US$6.1tUS$1.6tUS$248.0b16.9x24.6x3.8x
Wed, 23 Apr 2025US$5.2tUS$1.6tUS$228.1b16.2x23x3.3x
Fri, 21 Mar 2025US$5.8tUS$1.6tUS$228.1b16.7x25.6x3.7x
Sun, 16 Feb 2025US$6.6tUS$1.6tUS$218.0b19.9x30.3x4.2x
Tue, 14 Jan 2025US$6.1tUS$1.6tUS$189.6b19.1x32.1x3.9x
Thu, 12 Dec 2024US$6.2tUS$1.6tUS$189.5b17.8x32.6x3.9x
Sat, 09 Nov 2024US$5.9tUS$1.6tUS$189.0b19.1x31.4x3.8x
Mon, 07 Oct 2024US$5.7tUS$1.5tUS$188.2b18.3x30.4x3.7x
Wed, 04 Sep 2024US$5.4tUS$1.6tUS$189.1b18.8x28.4x3.5x
Fri, 02 Aug 2024US$5.3tUS$1.5tUS$203.4b20.3x26x3.4x
Sun, 30 Jun 2024US$5.5tUS$1.5tUS$191.3b16x28.8x3.6x
Tue, 28 May 2024US$5.3tUS$1.5tUS$191.3b17.3x27.7x3.5x
Thu, 25 Apr 2024US$5.1tUS$1.5tUS$176.7b17.9x28.8x3.4x
Sat, 23 Mar 2024US$5.1tUS$1.5tUS$175.9b18x28.9x3.4x
Mon, 19 Feb 2024US$4.8tUS$1.5tUS$174.0b16x27.7x3.2x
Wed, 17 Jan 2024US$4.7tUS$1.5tUS$128.1b15.4x36.7x3.1x
Fri, 15 Dec 2023US$4.5tUS$1.5tUS$128.1b16.9x35x2.9x
Sun, 12 Nov 2023US$4.3tUS$1.5tUS$125.7b13.1x34.4x2.9x
Tue, 10 Oct 2023US$4.4tUS$1.5tUS$104.7b14.3x41.8x2.9x
Thu, 07 Sep 2023US$4.3tUS$1.5tUS$104.4b14.5x41.2x2.9x
Price to Earnings Ratio

41.2x


Total Market Cap: US$4.3tTotal Earnings: US$104.4bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 29.1x202420252026
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 25.4x which is lower than its 3-year average PE of 29.1x.
  • The 3-year average PS ratio of 4.0x is lower than the industry's current PS ratio of 5.5x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 54% per year over the last three years.
  • Revenues for these companies have grown 6.1% 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 Market0.28%
Telecom1.81%
Telecom Services and Carriers2.73%
Media2.25%
Interactive Media and Services1.66%
Entertainment0.88%
Wireless Telecom-0.67%
Industry PE
  • Investors are most optimistic about the Telecom Services and Carriers industry which is trading above its 3-year average PE ratio of 7.1x.
    • Analysts are expecting annual earnings growth of 46.3%, which is higher than its past year's earnings decline of 16.2% per year.
  • Investors are most pessimistic about the Wireless Telecom industry, which is trading below its 3-year average of 22.7x.
Forecasted Growth
  • Analysts are most optimistic on the Telecom Services and Carriers industry, expecting annual earnings growth of 46% over the next 5 years.
  • This is better than its past earnings decline of 16% per year.
  • In contrast, the Interactive Media and Services industry is expected to see its earnings grow by 3.9% 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
META Meta PlatformsUS$578.025.1%
+US$71.6b		-21.8%PE21.6x
SPCX Space Exploration TechnologiesUS$141.503.3%
+US$61.5b		n/aPS83.3x
GOOGL AlphabetUS$346.590.5%
+US$21.6b		62.8%PE17.4x
NFLX NetflixUS$81.722.7%
+US$8.9b		-32.4%PE24.9x
T AT&TUS$26.012.8%
+US$4.9b		-11.2%PE8.3x

Latest News

NFLX
US$81.72
Netflix
7D
2.7%
1Y
-32.4%
TME
US$8.56
Tencent Music Entertainment Group
7D
-2.7%
1Y
-65.1%
TMUS
US$181.37
T-Mobile US
7D
-0.9%
1Y
-28.0%
GOOGL
US$346.59
Alphabet
7D
0.5%
1Y
62.8%
T
US$26.01
AT&T
7D
2.8%
1Y
-11.2%
SPCX
US$141.50
Space Exploration Technologies
7D
3.3%
1Y
n/a
Narrative Update • Aug 28

SpaceX’s path to $300B may be on Earth

SpaceX’s first earnings call materially changed how I think about the company. The biggest surprise was AI infrastructure.
META
US$578.02
Meta Platforms
7D
5.1%
1Y
-21.8%
TTWO
US$235.39
Take-Two Interactive Software
7D
-1.8%
1Y
0.9%
New Narrative • Aug 27

It Only Takes One: The Biggest Game of All Time

Take Two will have the biggest game release of the decade by far, likely of all time, in November 19, 2026. Their previous game in the Grand Theft Auto (GTA) series brought more than a 6x return on the stock in just 4 years, and this game will undoubtedly be larger and will scale much faster due to the rise in social media and streaming for release day.
VZ
US$50.10
Verizon Communications
7D
1.3%
1Y
13.3%
TKO
US$184.64
TKO Group Holdings
7D
-4.4%
1Y
-2.6%
ASTS
US$58.05
AST SpaceMobile
7D
-15.4%
1Y
18.6%
SPOT
US$547.51
Spotify Technology
7D
2.6%
1Y
-19.7%
APP
US$317.76
AppLovin
7D
3.9%
1Y
-33.6%
Narrative Update • Aug 20

APP: AI Advertising Expansion And Buybacks Will Drive Future Upside

Analysts have reduced their price target on AppLovin to about $528 from roughly $648, reflecting updated assumptions around a higher discount rate, more moderate revenue growth, slightly stronger profit margins, and a lower future P/E multiple. What’s in the News for AppLovin AppLovin shares fell about 5% after Bank of America cut its rating from Buy to Neutral and lowered its price target from US$430 to US$400, citing concerns about sustaining long term 30% year over year revenue growth and the durability of the AXON AI growth engine.
MSGS
US$389.34
Madison Square Garden Sports
7D
-4.1%
1Y
96.8%
Narrative Update • Aug 20

MSGS: Knicks Title And Rangers Spin Will Drive Future Upside

The analyst fair value estimate for Madison Square Garden Sports has moved from about $441 to about $481. Analysts cited refreshed models after fiscal Q4 results, adjustments to revenue and P/E assumptions, and updated views on franchise valuation and recent transaction benchmarks.
SPHR
US$141.68
Sphere Entertainment
7D
-10.5%
1Y
212.7%
Narrative Update • Aug 19

SPHR: Immersive Content Slate And New Venues Will Shape Future Returns

Analysts have raised their fair value estimate for Sphere Entertainment to $158 from $150, citing a series of higher Street price targets. These reflect updated models following recent earnings, stronger confidence in the Sphere content model, and sustained demand for live events and immersive productions.
FWON.K
US$101.80
Formula One Group
7D
-3.0%
1Y
1.9%