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U.S. Telecom Sector Analysis

UpdatedAug 22, 2026
DataAggregated Company Financials
Companies474
  • 7D-1.6%
  • 3M-8.5%
  • 1Y10.4%
  • YTD-4.7%

Over the last 7 days, the Telecom industry has dropped 1.6%, driven by Meta Platforms declining 6.8%. In the past year, the industry has gained 10%. As for the next few years, earnings are expected to grow by 17% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 22 Aug 2026US$9.5tUS$1.8tUS$386.7b18.6x24.6x5.3x
Mon, 20 Jul 2026US$9.5tUS$1.7tUS$301.1b19.3x31.5x5.4x
Wed, 17 Jun 2026US$10.7tUS$1.7tUS$298.8b18.9x36x6.2x
Fri, 15 May 2026US$8.5tUS$1.7tUS$308.4b16.1x27.7x5x
Sun, 12 Apr 2026US$7.6tUS$1.7tUS$272.3b15.3x28x4.6x
Tue, 10 Mar 2026US$7.6tUS$1.7tUS$272.1b17.5x27.8x4.5x
Thu, 05 Feb 2026US$8.0tUS$1.7tUS$278.9b15.9x28.8x4.8x
Sat, 03 Jan 2026US$7.8tUS$1.6tUS$282.6b16.1x27.4x4.7x
Mon, 01 Dec 2025US$7.8tUS$1.6tUS$282.5b16.5x27.7x4.8x
Wed, 29 Oct 2025US$7.6tUS$1.6tUS$295.4b18x25.7x4.7x
Fri, 26 Sep 2025US$7.5tUS$1.6tUS$286.0b19.4x26.1x4.6x
Sun, 24 Aug 2025US$7.0tUS$1.6tUS$286.8b21.4x24.6x4.3x
Tue, 22 Jul 2025US$6.6tUS$1.6tUS$250.6b17.9x26.4x4.1x
Thu, 19 Jun 2025US$6.4tUS$1.6tUS$250.1b17.4x25.7x4x
Sat, 17 May 2025US$6.1tUS$1.6tUS$247.2b17.5x24.8x3.8x
Mon, 14 Apr 2025US$5.5tUS$1.6tUS$227.2b15.5x24.2x3.5x
Wed, 12 Mar 2025US$5.8tUS$1.6tUS$228.0b16x25.6x3.7x
Fri, 07 Feb 2025US$6.5tUS$1.6tUS$217.1b19.9x30x4.1x
Sun, 05 Jan 2025US$6.1tUS$1.6tUS$189.8b18.8x32.3x3.9x
Tue, 03 Dec 2024US$5.9tUS$1.6tUS$189.7b20.2x31x3.7x
Thu, 31 Oct 2024US$5.7tUS$1.5tUS$185.4b18.3x30.8x3.7x
Sat, 28 Sep 2024US$5.6tUS$1.5tUS$188.3b19.1x29.5x3.6x
Mon, 26 Aug 2024US$5.4tUS$1.6tUS$189.2b18.6x28.5x3.5x
Wed, 24 Jul 2024US$5.4tUS$1.5tUS$191.6b20x28.4x3.6x
Fri, 21 Jun 2024US$5.4tUS$1.5tUS$191.0b16.3x28.2x3.5x
Sun, 19 May 2024US$5.3tUS$1.5tUS$191.8b18.4x27.7x3.5x
Tue, 16 Apr 2024US$5.1tUS$1.5tUS$176.0b18.3x29.1x3.4x
Thu, 14 Mar 2024US$4.9tUS$1.5tUS$175.4b16.9x27.9x3.3x
Sat, 10 Feb 2024US$4.9tUS$1.5tUS$172.4b14.4x28.4x3.3x
Mon, 08 Jan 2024US$4.6tUS$1.5tUS$128.1b15.4x35.7x3x
Wed, 06 Dec 2023US$4.4tUS$1.5tUS$128.1b15.6x34.1x2.9x
Fri, 03 Nov 2023US$4.2tUS$1.5tUS$123.5b12.3x33.8x2.8x
Sun, 01 Oct 2023US$4.2tUS$1.5tUS$104.7b14.1x40.3x2.8x
Tue, 29 Aug 2023US$4.2tUS$1.5tUS$104.0b14.2x40.1x2.8x
Price to Earnings Ratio

40.1x


Total Market Cap: US$4.2tTotal Earnings: US$104.0bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 29.2x202420252026
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 24.6x which is lower than its 3-year average PE of 29.2x.
  • The 3-year average PS ratio of 3.9x is lower than the industry's current PS ratio of 5.3x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 55% 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 Market-1.53%
Telecom-1.58%
Entertainment0.87%
Wireless Telecom0.18%
Telecom Services and Carriers-1.38%
Media-1.82%
Interactive Media and Services-2.12%
Industry PE
  • Investors are most optimistic about the Telecom Services and Carriers industry which is trading above its 3-year average PE ratio of 5.7x.
    • Analysts are expecting annual earnings growth of 45.9%, 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 22.8x.
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 3.7% 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
SPCX Space Exploration TechnologiesUS$136.97-2.2%
US$13.6b		n/aPS80.7x
NFLX NetflixUS$79.591.8%
+US$6.0b		-33.9%PE24.3x
SPOT Spotify TechnologyUS$533.724.1%
+US$4.3b		-23.0%PE28.1x
VZ Verizon CommunicationsUS$49.452.0%
+US$4.0b		11.3%PE12.7x
T AT&TUS$25.291.6%
+US$2.7b		-12.1%PE8.1x

Latest News

TTWO
US$239.62
Take-Two Interactive Software
7D
-3.0%
1Y
4.6%
GOOGL
US$344.82
Alphabet
7D
-0.3%
1Y
67.3%
ECHO
US$86.81
EchoStar
7D
-5.5%
1Y
193.1%
SPOT
US$533.72
Spotify Technology
7D
4.1%
1Y
-23.0%
T
US$25.29
AT&T
7D
1.6%
1Y
-12.1%
NFLX
US$79.59
Netflix
7D
1.8%
1Y
-33.9%
Narrative Update • Aug 21

NFLX: Future Returns Will Depend On Advertising Scale Despite Engagement Concerns

Analysts have lowered their average Netflix price target to $70 from about $88.66, reflecting expectations for softer revenue growth and profit margin assumptions, a higher discount rate, and a reset future P/E multiple, even as the company continues to benefit from content partnerships, advertising expansion, and large scale. Analyst Commentary Recent research around Netflix shows a split view.
APP
US$305.77
AppLovin
7D
-3.1%
1Y
-30.8%
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.
META
US$549.90
Meta Platforms
7D
-6.8%
1Y
-27.1%
VZ
US$49.45
Verizon Communications
7D
2.0%
1Y
11.3%
Seeking Alpha • Aug 20

Verizon And Its Real Value

Summary Verizon Communications shows operational improvement with rising EBITDA and subscriber growth, but revenue remains pressured and fundamentals are mixed. VZ's balance sheet is weak, with high debt, a low current ratio, and declining ROE and ROIC, despite strong gross margins. The stock appears to be trading above estimated valuations. Verizon is expanding into fiber and AI infrastructure with a $1 billion deal with Alphabet. Read the full article on Seeking Alpha
BIDU
US$93.21
Baidu
7D
-10.1%
1Y
3.6%
CMCSA
US$26.85
Comcast
7D
2.6%
1Y
-21.4%
SPCX
US$136.97
Space Exploration Technologies
7D
-2.2%
1Y
n/a
Narrative Update • Aug 19

SPCX: AI And Tokenization Optionality Will Sustain Long-Term Upside Potential

Analysts trimmed the Space Exploration Technologies fair value estimate to $213.50 from $223.00, as a slightly higher discount rate and lower projected profit margins outweighed stronger modeled revenue growth and a higher future P/E tied to ongoing enthusiasm for AI and tokenization driven demand, Starlink expansion, and Starship related optionality. Analyst Commentary Recent Street research on Space Exploration Technologies shows a wide spread of views on how sustainable the current valuation is and how much credit to give the company for AI, Starlink and Starship related optionality.
RDDT
US$153.29
Reddit
7D
-13.9%
1Y
-29.5%
Narrative Update • Aug 19

RDDT: AI Licensing And Search Changes Will Likely Restrain Future User Engagement

Reddit's analyst-derived fair value estimate has shifted lower from about $154 to $132, as analysts factor in softer revenue growth and a lower future P/E multiple, alongside ongoing debates over AI licensing deals, user trends, and the balance between monetization and traffic from partners like Google. Analyst Commentary Recent research on Reddit reflects a split view, with some firms lifting targets and others cutting them as they reassess user trends, AI licensing risk, and appropriate P/E and revenue multiples.
DIS
US$107.78
Walt Disney
7D
0.9%
1Y
-9.3%
WBD
US$28.55
Warner Bros. Discovery
7D
2.0%
1Y
136.9%
LYV
US$181.82
Live Nation Entertainment
7D
-3.5%
1Y
9.7%
Seeking Alpha • Aug 13

Live Nation Entertainment: Demand Remains Strong

Summary Live Nation Entertainment remains a Buy as Q2 results show robust attendance, record deferred revenue, and double-digit AOI growth in Ticketing and Sponsorship. Q2 saw 9% revenue growth, with 10% higher fan attendance and deferred revenue up 25% to $6.4 billion, supporting near-term growth visibility. Venue Nation's owned venue strategy is boosting monetization per fan, with a pipeline of >25 large venues expected to further drive AOI growth through 2027. Ticketmaster and Sponsorship are scaling internationally, delivering strong incremental margins, and providing durable, high-margin growth beyond ticket admissions. Read the full article on Seeking Alpha