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U.S. Telecom Sector Analysis

UpdatedAug 21, 2026
DataAggregated Company Financials
Companies473
  • 7D-2.7%
  • 3M-9.3%
  • 1Y9.8%
  • YTD-5.8%

Over the last 7 days, the Telecom industry has remained flat, although notably Netflix gained 8.1%. As for the the longer term, the industry is up 12% over the past 12 months. 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
Fri, 21 Aug 2026US$9.5tUS$1.8tUS$386.7b18.1x24.6x5.3x
Sun, 19 Jul 2026US$9.5tUS$1.7tUS$301.1b19.3x31.5x5.4x
Tue, 16 Jun 2026US$10.0tUS$1.7tUS$298.8b19.2x33.5x5.7x
Thu, 14 May 2026US$8.3tUS$1.7tUS$308.2b16.2x27x4.8x
Sat, 11 Apr 2026US$7.6tUS$1.7tUS$272.5b15.3x28.1x4.6x
Mon, 09 Mar 2026US$7.6tUS$1.7tUS$272.1b17.9x27.8x4.5x
Wed, 04 Feb 2026US$8.1tUS$1.7tUS$279.1b16.3x29.1x4.9x
Fri, 02 Jan 2026US$7.8tUS$1.6tUS$282.6b15.9x27.6x4.7x
Sun, 30 Nov 2025US$7.8tUS$1.6tUS$282.5b16.5x27.7x4.8x
Tue, 28 Oct 2025US$7.4tUS$1.6tUS$295.4b17.9x25.2x4.6x
Thu, 25 Sep 2025US$7.5tUS$1.6tUS$286.0b20.2x26.3x4.7x
Sat, 23 Aug 2025US$7.0tUS$1.6tUS$286.8b21.4x24.2x4.3x
Mon, 21 Jul 2025US$6.6tUS$1.6tUS$250.6b17.7x26.3x4.1x
Wed, 18 Jun 2025US$6.5tUS$1.6tUS$250.1b17.1x25.9x4x
Fri, 16 May 2025US$6.1tUS$1.6tUS$248.0b17x24.8x3.8x
Sun, 13 Apr 2025US$5.5tUS$1.6tUS$227.2b15.5x24.2x3.5x
Tue, 11 Mar 2025US$6.1tUS$1.6tUS$228.0b16x26.6x3.8x
Thu, 06 Feb 2025US$6.7tUS$1.6tUS$216.9b19x30.8x4.2x
Sat, 04 Jan 2025US$6.1tUS$1.6tUS$189.8b18.8x32x3.9x
Mon, 02 Dec 2024US$5.9tUS$1.6tUS$189.7b20.2x31x3.7x
Wed, 30 Oct 2024US$5.6tUS$1.5tUS$180.7b18.3x31.2x3.7x
Fri, 27 Sep 2024US$5.5tUS$1.5tUS$188.2b17.8x29.4x3.6x
Sun, 25 Aug 2024US$5.4tUS$1.6tUS$189.2b18.6x28.5x3.5x
Tue, 23 Jul 2024US$5.4tUS$1.5tUS$191.7b20.1x28x3.5x
Thu, 20 Jun 2024US$5.4tUS$1.5tUS$191.0b16.4x28.2x3.5x
Sat, 18 May 2024US$5.3tUS$1.5tUS$191.8b18.4x27.6x3.5x
Mon, 15 Apr 2024US$5.1tUS$1.5tUS$176.0b18.4x29.1x3.4x
Wed, 13 Mar 2024US$4.8tUS$1.5tUS$173.8b17.3x27.9x3.2x
Fri, 09 Feb 2024US$4.8tUS$1.5tUS$171.9b14.4x28.2x3.3x
Sun, 07 Jan 2024US$4.6tUS$1.5tUS$128.1b15.4x35.7x3x
Tue, 05 Dec 2023US$4.4tUS$1.5tUS$128.1b16.3x34.5x2.9x
Thu, 02 Nov 2023US$4.1tUS$1.5tUS$123.7b12.6x33.2x2.7x
Sat, 30 Sep 2023US$4.2tUS$1.5tUS$104.7b14.1x40.4x2.8x
Mon, 28 Aug 2023US$4.2tUS$1.5tUS$104.0b13.6x40.1x2.8x
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 29.3x202420252026
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 25.1x which is lower than its 3-year average PE of 29.3x.
  • The 3-year average PS ratio of 3.9x is lower than the industry's current PS ratio of 5.4x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 54% 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-2.09%
Telecom-2.70%
Entertainment2.05%
Media-0.95%
Wireless Telecom-1.34%
Interactive Media and Services-3.11%
Telecom Services and Carriers-3.87%
Industry PE
  • Investors are most optimistic about the Media industry which is trading above its 3-year average PE ratio of 12.4x.
    • Analysts are expecting annual earnings growth of 21.0%, which is higher than its past year's earnings growth of 11.6% 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 3.6% 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
NFLX NetflixUS$80.142.4%
+US$7.9b		-33.6%PE24.4x
SPOT Spotify TechnologyUS$533.137.0%
+US$7.2b		-22.7%PE28.1x
DIS Walt DisneyUS$107.322.4%
+US$4.4b		-7.6%PE21.5x
VZ Verizon CommunicationsUS$49.192.0%
+US$4.0b		9.2%PE12.6x
T AT&TUS$25.152.3%
+US$3.9b		-14.6%PE8x

Latest News

T
US$25.15
AT&T
7D
2.3%
1Y
-14.6%
TMUS
US$181.22
T-Mobile US
7D
-1.2%
1Y
-29.8%
ASTS
US$65.06
AST SpaceMobile
7D
-9.0%
1Y
44.6%
META
US$545.83
Meta Platforms
7D
-7.5%
1Y
-27.7%
VZ
US$49.19
Verizon Communications
7D
2.0%
1Y
9.2%
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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
GOOGL
US$340.67
Alphabet
7D
-1.5%
1Y
65.3%
FOXA
US$67.96
Fox
7D
3.8%
1Y
15.1%
BIDU
US$91.97
Baidu
7D
-11.3%
1Y
2.2%
SPOT
US$533.13
Spotify Technology
7D
7.0%
1Y
-22.7%
SPCX
US$134.00
Space Exploration Technologies
7D
-5.2%
1Y
n/a
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RDDT
US$150.31
Reddit
7D
-4.9%
1Y
-31.3%
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.
ECHO
US$86.92
EchoStar
7D
-5.4%
1Y
193.5%
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DIS
US$107.32
Walt Disney
7D
2.4%
1Y
-7.6%
NFLX
US$80.14
Netflix
7D
2.4%
1Y
-33.6%
WBD
US$28.23
Warner Bros. Discovery
7D
1.7%
1Y
143.7%
WMG
US$27.10
Warner Music Group
7D
6.9%
1Y
-16.7%
Narrative Update • Aug 11

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Analysts have trimmed their price target on Warner Music Group by $2 to $36. They cited updated assumptions for fair value, discount rate, revenue growth, profit margin and future P/E, and pointed to recent Q3 results as support for their view despite earlier exogenous pressures on sentiment.