Investing IdeasBrowse All StocksMarkets

Have your own idea? Try our Stock Screener

Header cover image

U.S. Telecom Sector Analysis

UpdatedNov 29, 2024
DataAggregated Company Financials
Companies457
  • 7D1.6%
  • 3M10.5%
  • 1Y39.9%
  • YTD34.6%

Over the last 7 days, the Telecom industry has remained flat, although notably T-Mobile US gained 4.6%. The past year has been better, since the industry has gained 39% in that time. Earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Tue, 20 Jun 2023US$4.2tUS$1.5tUS$107.1b17.4x38.7x2.8x
Thu, 18 May 2023US$4.0tUS$1.5tUS$106.9b16.4x37x2.7x
Sat, 15 Apr 2023US$3.9tUS$1.5tUS$115.8b16.7x33.3x2.6x
Mon, 13 Mar 2023US$3.4tUS$1.5tUS$115.0b17.8x29.5x2.3x
Wed, 08 Feb 2023US$3.8tUS$1.5tUS$128.5b19.9x29.4x2.6x
Fri, 06 Jan 2023US$3.2tUS$1.5tUS$166.4b16.3x19.5x2.2x
Sun, 04 Dec 2022US$3.4tUS$1.5tUS$166.5b18.8x20.7x2.3x
Tue, 01 Nov 2022US$3.2tUS$1.5tUS$168.0b16.1x19.1x2.2x
Thu, 29 Sep 2022US$3.4tUS$1.5tUS$187.6b14.8x17.9x2.3x
Sat, 27 Aug 2022US$3.7tUS$1.5tUS$186.9b16.4x20x2.5x
Mon, 25 Jul 2022US$3.8tUS$1.4tUS$212.3b16.5x17.7x2.6x
Wed, 22 Jun 2022US$4.3tUS$1.5tUS$213.9b17.2x20x2.9x
Fri, 20 May 2022US$3.9tUS$1.5tUS$218.1b17.5x17.8x2.7x
Sun, 17 Apr 2022US$4.5tUS$1.4tUS$224.6b20.4x20.1x3.1x
Tue, 15 Mar 2022US$4.3tUS$1.4tUS$225.7b16.6x18.9x3x
Thu, 10 Feb 2022US$5.0tUS$1.4tUS$218.3b19.8x22.9x3.5x
Sat, 08 Jan 2022US$5.3tUS$1.4tUS$194.6b19.7x27.3x3.8x
Mon, 06 Dec 2021US$5.4tUS$1.4tUS$194.4b19.2x27.6x3.8x
Price to Earnings Ratio

27.6x


Total Market Cap: US$5.4tTotal Earnings: US$194.4bTotal Revenue: US$1.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 28.1x202220232024
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 Market0.49%
Telecom1.58%
Wireless Telecom3.07%
Interactive Media and Services2.28%
Telecom Services and Carriers1.53%
Entertainment-0.24%
Media-0.72%
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 27.9%, 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 28% 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?

CompanyLast Price7D1YValuation
GOOGL AlphabetUS$169.232.7%
+US$54.7b		28.3%PE22x
META Meta PlatformsUS$569.201.8%
+US$25.4b		75.2%PE25.9x
TMUS T-Mobile USUS$246.203.3%
+US$9.2b		61.7%PE27.5x
VZ Verizon CommunicationsUS$44.382.9%
+US$5.2b		15.0%PE19.1x
DIS Walt DisneyUS$117.601.7%
+US$3.5b		27.0%PE42.8x
Simply Wall St™
Simply Wall Street Pty Ltd
Level 7, 320 Pitt Street, Sydney
Download on the App StoreGet it on Google Play
Popular Markets
USAUUKINCAZA
About UsCareersPlansLogin
Help CenterLatest CoveragePodcastsAffiliate ProgramBusiness & EnterpriseWhat's New
Financial Services GuideTerms and ConditionsPrivacy Policy
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

BIDU

US$84.82

Baidu

7D

5.6%

1Y

-27.4%

Investors Will Want Baidu's (NASDAQ:BIDU) Growth In ROCE To Persist

Nov 28
Investors Will Want Baidu's (NASDAQ:BIDU) Growth In ROCE To Persist

CMCSA

US$42.56

Comcast

7D

-2.1%

1Y

0.8%

DIS

US$117.60

Walt Disney

7D

1.7%

1Y

27.0%

Bullish On Disney, But Average-In On Price-Decline Days

Nov 27

GOOGL

US$169.23

Alphabet

7D

2.7%

1Y

28.3%

An Intrinsic Calculation For Alphabet Inc. (NASDAQ:GOOGL) Suggests It's 29% Undervalued

Nov 27
An Intrinsic Calculation For Alphabet Inc. (NASDAQ:GOOGL) Suggests It's 29% Undervalued

META

US$569.20

Meta Platforms

7D

1.8%

1Y

75.2%

Here's Why We Think Meta Platforms (NASDAQ:META) Might Deserve Your Attention Today

Nov 26
Here's Why We Think Meta Platforms (NASDAQ:META) Might Deserve Your Attention Today

VZ

US$44.38

Verizon Communications

7D

2.9%

1Y

15.0%

Verizon: Deeply Undervalued Dividend Delight

Nov 26

TTWO

US$185.56

Take-Two Interactive Software

7D

-1.4%

1Y

17.6%

LUMN

US$7.37

Lumen Technologies

7D

-6.5%

1Y

398.0%

Lumen Technologies, Inc. (NYSE:LUMN) Shares Fly 28% But Investors Aren't Buying For Growth

Nov 22
Lumen Technologies, Inc. (NYSE:LUMN) Shares Fly 28% But Investors Aren't Buying For Growth

TMUS

US$246.20

T-Mobile US

7D

3.3%

1Y

61.7%

EA

US$163.10

Electronic Arts

7D

-2.1%

1Y

18.4%

NBIS

US$21.43

Nebius Group

7D

-8.8%

1Y

n/a

NFLX

US$877.34

Netflix

7D

-2.3%

1Y

88.4%

Netflix: Why I Am Taking Triple-Digit Profits (Rating Downgrade)

Nov 18

RDDT

US$140.04

Reddit

7D

-4.5%

1Y

n/a

FWON.K

US$88.73

Formula One Group

7D

5.4%

1Y

39.4%

TTD

US$128.15

Trade Desk

7D

-1.2%

1Y

79.0%

Trade Desk's (NASDAQ:TTD) Performance Is Even Better Than Its Earnings Suggest

Nov 14
Trade Desk's (NASDAQ:TTD) Performance Is Even Better Than Its Earnings Suggest

SE

US$115.71

Sea

7D

2.4%

1Y

208.7%