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U.S. Telecom Sector Analysis

UpdatedApr 03, 2025
DataAggregated Company Financials
Companies476
  • 7D-3.3%
  • 3M-5.4%
  • 1Y13.1%
  • YTD-5.4%

Over the last 7 days, the Telecom industry has dropped 3.3%, driven by a pullback from Alphabet of 4.9%. In the past year, the industry has gained 13%. Earnings are forecast to grow by 13% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 03 Apr 2025US$5.7tUS$1.6tUS$227.4b17.4x25.3x3.6x
Sat, 01 Mar 2025US$6.1tUS$1.6tUS$228.1b17.1x26.9x3.9x
Mon, 27 Jan 2025US$6.4tUS$1.6tUS$198.3b18.8x32.2x4.1x
Wed, 25 Dec 2024US$6.2tUS$1.6tUS$189.6b18x32.9x4x
Fri, 22 Nov 2024US$5.9tUS$1.6tUS$189.7b19.8x31.3x3.8x
Sun, 20 Oct 2024US$5.7tUS$1.5tUS$188.9b18.5x29.9x3.7x
Tue, 17 Sep 2024US$5.3tUS$1.5tUS$187.4b18.7x28.3x3.4x
Thu, 15 Aug 2024US$5.3tUS$1.6tUS$189.6b18.8x28.1x3.4x
Sat, 13 Jul 2024US$5.5tUS$1.5tUS$191.2b17.3x28.9x3.6x
Mon, 10 Jun 2024US$5.3tUS$1.5tUS$191.0b15.3x28x3.5x
Wed, 08 May 2024US$5.2tUS$1.5tUS$193.7b18.2x26.9x3.4x
Fri, 05 Apr 2024US$5.2tUS$1.5tUS$176.0b19.5x29.3x3.4x
Sun, 03 Mar 2024US$4.9tUS$1.5tUS$174.0b16.9x28.1x3.2x
Tue, 30 Jan 2024US$5.0tUS$1.5tUS$145.5b15.3x34.2x3.3x
Thu, 28 Dec 2023US$4.6tUS$1.5tUS$127.9b14.7x36.4x3.1x
Sat, 25 Nov 2023US$4.5tUS$1.5tUS$128.3b16x35.2x3x
Mon, 23 Oct 2023US$4.3tUS$1.5tUS$102.5b14.9x41.7x2.8x
Wed, 20 Sep 2023US$4.4tUS$1.5tUS$104.4b14.3x41.8x2.9x
Fri, 18 Aug 2023US$4.2tUS$1.5tUS$102.7b14.9x41x2.8x
Sun, 16 Jul 2023US$4.3tUS$1.5tUS$106.8b16.6x40x2.9x
Tue, 13 Jun 2023US$4.1tUS$1.5tUS$107.1b15.9x38.3x2.8x
Thu, 11 May 2023US$3.8tUS$1.5tUS$104.6b17.1x36.6x2.6x
Sat, 08 Apr 2023US$3.8tUS$1.5tUS$115.4b16.6x33.3x2.6x
Mon, 06 Mar 2023US$3.6tUS$1.5tUS$113.7b20x31.4x2.4x
Wed, 01 Feb 2023US$3.6tUS$1.5tUS$141.4b19.1x25.7x2.5x
Fri, 30 Dec 2022US$3.2tUS$1.5tUS$166.4b15.5x19.1x2.1x
Sun, 27 Nov 2022US$3.3tUS$1.5tUS$165.9b18.2x20x2.2x
Tue, 25 Oct 2022US$3.4tUS$1.5tUS$187.1b15.6x17.9x2.3x
Thu, 22 Sep 2022US$3.4tUS$1.5tUS$187.6b14.9x18.1x2.3x
Sat, 20 Aug 2022US$3.9tUS$1.5tUS$186.4b17.2x21x2.6x
Mon, 18 Jul 2022US$2.4tUS$1.5tUS$214.3b15.7x11.1x1.6x
Wed, 15 Jun 2022US$4.2tUS$1.5tUS$214.0b16.4x19.7x2.9x
Fri, 13 May 2022US$3.8tUS$1.5tUS$217.8b17.8x17.6x2.6x
Sun, 10 Apr 2022US$4.6tUS$1.4tUS$223.8b20x20.7x3.2x
Price to Earnings Ratio

20.7x


Total Market Cap: US$4.6tTotal Earnings: US$223.8bTotal Revenue: US$1.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 28.8x202320242025
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 25.3x which is lower than its 3-year average PE of 28.8x.
  • The 3-year average PS ratio of 3.0x is lower than the industry's current PS ratio of 3.6x.
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 3.2% 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-0.90%
Telecom-3.31%
Telecom Services and Carriers0.88%
Wireless Telecom0.75%
Media-1.87%
Entertainment-1.87%
Interactive Media and Services-4.71%
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 25.1%, which is higher than its past year's earnings growth of 21.0% per year.
  • Investors are most pessimistic about the Telecom Services and Carriers industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 0.35x.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Media industry is expected to see its earnings grow by 9.5% 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
T AT&TUS$28.141.8%
+US$3.5b		59.8%PE18.8x
SE SeaUS$134.584.1%
+US$3.0b		153.7%PE174x
VZ Verizon CommunicationsUS$44.741.3%
+US$2.4b		4.4%PE10.8x
TMUS T-Mobile USUS$264.560.8%
+US$2.3b		62.0%PE26.6x
LYV Live Nation EntertainmentUS$134.656.2%
+US$1.8b		29.2%PE48.8x
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