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U.S. Telecom Sector Analysis

UpdatedJul 16, 2026
DataAggregated Company Financials
Companies478
  • 7D1.3%
  • 3M2.5%
  • 1Y27.1%
  • YTD1.5%

Over the last 7 days, the Telecom industry has dropped 1.8%, driven by a pullback from Space Exploration Technologies of 9.0%. In contrast, Meta Platforms has gained 7.4%. In the past year, the industry has gained 24%. Earnings are forecast to grow by 23% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 16 Jul 2026US$9.8tUS$1.7tUS$300.8b19.2x32.7x5.7x
Sat, 13 Jun 2026US$10.0tUS$1.7tUS$299.4b18x33.3x5.7x
Mon, 11 May 2026US$8.5tUS$1.7tUS$309.0b17.7x27.6x4.9x
Wed, 08 Apr 2026US$7.3tUS$1.7tUS$272.4b15.6x26.7x4.3x
Fri, 06 Mar 2026US$7.7tUS$1.7tUS$271.8b17.8x28.2x4.6x
Sun, 01 Feb 2026US$8.1tUS$1.7tUS$279.2b16.7x29.1x4.9x
Tue, 30 Dec 2025US$7.8tUS$1.6tUS$282.4b16.3x27.6x4.7x
Thu, 27 Nov 2025US$7.8tUS$1.6tUS$283.1b16.5x27.5x4.7x
Sat, 25 Oct 2025US$7.3tUS$1.6tUS$295.4b17.4x24.9x4.5x
Mon, 22 Sep 2025US$7.6tUS$1.6tUS$286.1b20.4x26.7x4.7x
Wed, 20 Aug 2025US$7.1tUS$1.6tUS$286.5b19.5x24.6x4.3x
Fri, 18 Jul 2025US$6.6tUS$1.6tUS$249.6b17.9x26.4x4.1x
Sun, 15 Jun 2025US$6.4tUS$1.6tUS$250.1b17.3x25.5x4x
Tue, 13 May 2025US$5.8tUS$1.6tUS$247.3b16.9x23.6x3.7x
Thu, 10 Apr 2025US$5.3tUS$1.6tUS$227.2b15.9x23.5x3.4x
Sat, 08 Mar 2025US$6.1tUS$1.6tUS$228.0b16.3x26.6x3.8x
Mon, 03 Feb 2025US$6.6tUS$1.6tUS$209.4b19x31.4x4.2x
Wed, 01 Jan 2025US$6.1tUS$1.6tUS$189.8b18.7x32.1x3.9x
Fri, 29 Nov 2024US$5.9tUS$1.6tUS$189.7b20.2x30.9x3.7x
Sun, 27 Oct 2024US$5.6tUS$1.5tUS$180.7b18x31x3.6x
Tue, 24 Sep 2024US$5.5tUS$1.5tUS$188.2b18.1x29.2x3.6x
Thu, 22 Aug 2024US$5.4tUS$1.6tUS$189.2b19.3x28.6x3.5x
Sat, 20 Jul 2024US$5.4tUS$1.5tUS$191.7b18.2x28.1x3.5x
Mon, 17 Jun 2024US$5.4tUS$1.5tUS$191.0b16.4x28.3x3.5x
Wed, 15 May 2024US$5.2tUS$1.5tUS$193.8b18.3x26.8x3.4x
Fri, 12 Apr 2024US$5.2tUS$1.5tUS$176.0b19x29.3x3.4x
Sun, 10 Mar 2024US$4.9tUS$1.5tUS$173.8b16.7x27.9x3.2x
Tue, 06 Feb 2024US$4.8tUS$1.5tUS$158.6b14.5x30.5x3.2x
Thu, 04 Jan 2024US$4.6tUS$1.5tUS$128.1b15.9x35.8x3x
Sat, 02 Dec 2023US$4.4tUS$1.5tUS$128.0b16.4x34.6x2.9x
Mon, 30 Oct 2023US$4.0tUS$1.5tUS$126.0b12.5x31.9x2.7x
Wed, 27 Sep 2023US$4.2tUS$1.5tUS$104.7b13.8x39.8x2.8x
Fri, 25 Aug 2023US$4.2tUS$1.5tUS$103.5b13.5x40.3x2.8x
Sun, 23 Jul 2023US$4.2tUS$1.5tUS$107.2b14.9x38.8x2.8x
Price to Earnings Ratio

38.8x


Total Market Cap: US$4.2tTotal Earnings: US$107.2bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 29.7x202420252026
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 29.7x.
  • The 3-year average PS ratio of 3.9x is lower than the industry's current PS ratio of 5.6x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 41% per year over the last three years.
  • Revenues for these companies have grown 5.3% 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 Market0.81%
Telecom1.34%
Interactive Media and Services5.07%
Wireless Telecom3.50%
Media1.32%
Entertainment-0.72%
Telecom Services and Carriers-7.07%
Industry PE
  • Investors are most optimistic about the Telecom Services and Carriers industry which is trading above its 3-year average PE ratio of 1.1x.
    • Analysts are expecting annual earnings growth of 50.1%, which is higher than its past year's earnings decline of 9.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom Services and Carriers industry, expecting annual earnings growth of 50% over the next 5 years.
  • This is better than its past earnings decline of 9.7% per year.
  • In contrast, the Wireless Telecom 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?

CompanyLast Price7D1YValuation
META Meta PlatformsUS$681.3113.0%
+US$198.5b		-3.1%PE24.5x
GOOGL AlphabetUS$370.922.5%
+US$109.8b		102.7%PE28.3x
TMUS T-Mobile USUS$187.624.2%
+US$8.1b		-18.0%PE19.3x
T AT&TUS$21.431.5%
+US$2.2b		-20.5%PE7x
WBD Warner Bros. DiscoveryUS$27.272.4%
+US$1.6b		112.4%PS1.8x

Latest News

VZ
US$42.83
Verizon Communications
7D
0.9%
1Y
3.8%
Seeking Alpha • 9h

Verizon: Executing Amid Industry Uncertainty, Raising My Target

Summary Verizon is reiterated as a "Buy," with an attractive valuation and a high 6.66% forward dividend yield. VZ raised its FY 2026 EPS guidance to $4.95–$4.99, supported by strong postpaid phone and broadband net adds. Despite competition risks and technical weakness, VZ’s fundamentals remain solid, with $6.55 free cash flow per share over the past year. The recent correction brings VZ into a key support zone, offering a favorable entry ahead of the July 24 Q2 earnings report. Read the full article on Seeking Alpha
FOXA
US$55.99
Fox
7D
4.9%
1Y
0.6%
NFLX
US$73.67
Netflix
7D
-2.5%
1Y
-41.1%
Seeking Alpha • 10h

Netflix: The Market Hasn't Caught On To This Game-Changing Strategy

Summary Netflix, Inc. has sold off 45% since its June 2025 peak, given rising concerns about slowing engagement and steep viewership drop-offs for returning hits, which risk ROI compression. Q2 viewership data also suggests a modest report ahead of its upcoming earnings update, aligning with management's conservatism in April. However, Netflix's expanding live sports slate is increasingly emerging as a key lever for driving incremental engagement, accelerating ad monetization, and catalyzing a sustained ROI inflection in H2 '26. NFLX stock's heavy selloff over the past year has also increasingly de-risked near-term execution headwinds, supporting a stronger H2 '26 recovery setup. Read the full article on Seeking Alpha
ASTS
US$66.31
AST SpaceMobile
7D
-11.5%
1Y
26.0%
META
US$681.31
Meta Platforms
7D
13.0%
1Y
-3.1%
SPCX
US$135.27
Space Exploration Technologies
7D
-8.8%
1Y
n/a
RBLX
US$57.07
Roblox
7D
3.5%
1Y
-52.1%
Narrative Update • Jul 14

RBLX: Safety And Legal Reset Will Support Future Engagement And Monetization

Roblox's analyst fair value estimate edges higher from $95.62 to $98.34 as analysts factor in slightly lower assumed revenue growth, better projected profit margins, and a modestly higher future P/E, supported by recent price target increases and upgrades that highlight engagement trends, monetization, advertising, and AI-driven safety features. Analyst Commentary Recent Street research on Roblox shows a split tape, but the latest moves from bullish analysts lean toward a more constructive view on user trends, monetization, and execution against long term guidance.
T
US$21.43
AT&T
7D
1.5%
1Y
-20.5%
Seeking Alpha • Jul 14

AT&T: Weighing The D2D And Broadband Threat From Starlink

Summary AT&T (T) has experienced a 30% stock decline amid fears over Starlink's direct-to-consumer mobile ambitions, but I view the sell-off as overdone. Starlink's technological advances and spectrum acquisitions present long-term potential, but significant operational and regulatory hurdles limit its immediate threat to U.S. carriers. T's strategic spectrum purchases, robust buyback plans, and anticipated $45B in shareholder returns position it as a value opportunity if satellite competition proves less disruptive. I see AT&T as a resilient incumbent, with a potential for 3-4% annual growth and a path to a debt-to-EBITDA ratio near 2.5x by 2028. Read the full article on Seeking Alpha
GOOGL
US$370.92
Alphabet
7D
2.5%
1Y
102.7%
TMUS
US$187.62
T-Mobile US
7D
4.2%
1Y
-18.0%
WBD
US$27.26
Warner Bros. Discovery
7D
4.3%
1Y
116.7%
PSKY
US$9.25
Paramount Skydance
7D
-5.1%
1Y
-28.7%
Narrative Update • Jul 10

PSKY: Warner Mega Merger Debt And Covenants Will Pressure Future Earnings Multiple

Analysts have cut their fair value estimate for Paramount Skydance to about $3.09 from $7.00, citing a sharply lower assumed future P/E multiple and concerns about the planned Warner Bros. Discovery acquisition.
STUB
US$9.46
StubHub Holdings
7D
-25.5%
1Y
n/a
Narrative Update • Jul 10

STUB: World Cup Ticket Demand Will Reset Expectations For Future Performance

StubHub Holdings' analyst price targets have moved higher into a $8.50 to $12.50 range, as analysts point to reset expectations, potential growth catalysts such as the World Cup and Q2 acceleration, and a view that regulatory risks and leverage trends are more manageable than previously feared. Analyst Commentary Recent research on StubHub Holdings highlights a more constructive tone, with several bullish analysts pointing to a mix of valuation support, execution milestones, and upcoming growth catalysts as reasons for their higher price targets and upgraded views.
TTWO
US$243.80
Take-Two Interactive Software
7D
-3.0%
1Y
2.1%
LYV
US$178.44
Live Nation Entertainment
7D
-2.0%
1Y
20.1%
Seeking Alpha • Jul 01

Live Nation Entertainment: Strong Seasonality Ahead

Summary Live Nation Entertainment operates globally with revenue streams from concerts, ticketing, and sponsorship/advertising. Concerts contribute 73% of revenue, but ticketing delivers 60% of adjusted operating income due to higher margins. Sponsorship boasts the highest margin at 63.6%, while concerts operate at a slim 0.1% margin. Ticketmaster remains LYV's primary ticketing platform, underpinning the company's profitability and growth potential. Read the full article on Seeking Alpha
BIDU
US$111.48
Baidu
7D
-5.2%
1Y
29.1%
Narrative Update • Jun 30

BIDU: Planned Chip Spin-Off And Robotaxis Will Drive Future Legacy Recovery

Baidu's updated fair value estimate has nudged higher to about $248 as analysts factor in mixed signals from recent price target revisions, including Citi's short term catalyst watch linked to the potential chip business spin off and Susquehanna's view that AI driven growth and legacy marketing pressure leave the stock trading on what they see as an undemanding valuation. Analyst Commentary Recent research on Baidu reflects a mix of optimism around its AI and chip efforts alongside caution about pressure in its legacy online marketing business.