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U.S. Telecom Sector Analysis

UpdatedMay 12, 2025
DataAggregated Company Financials
Companies472
  • 7D-2.2%
  • 3M-11.2%
  • 1Y13.4%
  • YTD-4.5%

Over the last 7 days, the Telecom industry has dropped 2.1%, driven by a pullback from Alphabet of 6.9%. In contrast, Walt Disney has gained 15%. This takes the industry's 12 month performance to a gain of 13%. As for the next few years, earnings are expected to grow by 12% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 12 May 2025US$5.8tUS$1.6tUS$247.6b17.1x23.3x3.6x
Wed, 09 Apr 2025US$5.2tUS$1.6tUS$227.2b14.6x23x3.3x
Fri, 07 Mar 2025US$6.2tUS$1.6tUS$228.1b16.6x27.2x3.9x
Sun, 02 Feb 2025US$6.6tUS$1.6tUS$209.4b17.2x31.4x4.2x
Tue, 31 Dec 2024US$6.1tUS$1.6tUS$189.8b18.6x32.4x3.9x
Thu, 28 Nov 2024US$5.9tUS$1.6tUS$189.8b20.2x30.9x3.7x
Sat, 26 Oct 2024US$5.6tUS$1.5tUS$180.7b18x30.8x3.6x
Mon, 23 Sep 2024US$5.5tUS$1.5tUS$188.2b18.1x29.2x3.6x
Wed, 21 Aug 2024US$5.4tUS$1.6tUS$189.2b19.3x28.7x3.5x
Fri, 19 Jul 2024US$5.4tUS$1.5tUS$191.1b18.4x28.2x3.5x
Sun, 16 Jun 2024US$5.4tUS$1.5tUS$191.0b16.4x28.3x3.5x
Tue, 14 May 2024US$5.2tUS$1.5tUS$193.8b18.5x26.8x3.4x
Thu, 11 Apr 2024US$5.2tUS$1.5tUS$176.0b18.5x29.4x3.4x
Sat, 09 Mar 2024US$4.9tUS$1.5tUS$173.8b16.7x27.9x3.2x
Mon, 05 Feb 2024US$5.0tUS$1.5tUS$161.9b14.8x31x3.3x
Wed, 03 Jan 2024US$4.6tUS$1.5tUS$128.1b15.6x35.8x3x
Fri, 01 Dec 2023US$4.4tUS$1.5tUS$128.0b16x34.7x2.9x
Sun, 29 Oct 2023US$4.0tUS$1.5tUS$126.0b12.5x31.9x2.7x
Tue, 26 Sep 2023US$4.2tUS$1.5tUS$104.7b14.1x40.3x2.8x
Thu, 24 Aug 2023US$4.2tUS$1.5tUS$103.5b13.9x41.1x2.8x
Sat, 22 Jul 2023US$4.2tUS$1.5tUS$107.1b15x38.9x2.8x
Mon, 19 Jun 2023US$4.2tUS$1.5tUS$107.1b17.4x38.7x2.8x
Wed, 17 May 2023US$3.9tUS$1.5tUS$107.1b17.2x36.2x2.6x
Fri, 14 Apr 2023US$3.8tUS$1.5tUS$115.8b16.9x33.2x2.6x
Sun, 12 Mar 2023US$3.4tUS$1.5tUS$115.0b17.8x29.5x2.3x
Tue, 07 Feb 2023US$3.7tUS$1.5tUS$129.2b19.5x29x2.5x
Thu, 05 Jan 2023US$3.3tUS$1.5tUS$166.4b16.4x19.6x2.2x
Sat, 03 Dec 2022US$3.4tUS$1.5tUS$166.5b18.8x20.7x2.3x
Mon, 31 Oct 2022US$3.3tUS$1.5tUS$168.0b15.8x19.4x2.2x
Wed, 28 Sep 2022US$3.3tUS$1.5tUS$187.6b14.7x17.4x2.2x
Fri, 26 Aug 2022US$3.8tUS$1.5tUS$186.9b17.1x20.6x2.6x
Sun, 24 Jul 2022US$3.8tUS$1.4tUS$212.3b16.5x17.7x2.6x
Tue, 21 Jun 2022US$4.2tUS$1.5tUS$214.0b16.9x19.7x2.9x
Thu, 19 May 2022US$4.0tUS$1.5tUS$217.9b17.8x18.2x2.7x
Price to Earnings Ratio

18.2x


Total Market Cap: US$4.0tTotal Earnings: US$217.9bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 28.9x202320242025
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 23.3x which is lower than its 3-year average PE of 28.9x.
  • 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 grown 4.3% per year over the last three years.
  • Revenues for these companies have grown 3.1% 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 Market0.30%
Telecom-2.21%
Media3.35%
Entertainment1.43%
Telecom Services and Carriers0.64%
Wireless Telecom-1.35%
Interactive Media and Services-4.31%
Industry PE
  • Investors are most optimistic about the Entertainment industry which is trading above its 3-year average PE ratio.
    • Analysts expect its future annual earnings growth (21.7%) to be largely in line with prior year's earnings growth.
  • 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 0.62x.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 22% 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 9.3% 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
DIS Walt DisneyUS$105.9414.5%
+US$23.3b		0.1%PE21.4x
TTD Trade DeskUS$71.0428.0%
+US$7.6b		-18.8%PE84.7x
T AT&TUS$27.841.2%
+US$2.4b		61.3%PE17.1x
CHTR Charter CommunicationsUS$401.734.3%
+US$2.3b		45.8%PE10.9x
WBD Warner Bros. DiscoveryUS$9.078.4%
+US$1.7b		8.2%PS0.6x
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