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U.S. Telecom Sector Analysis

UpdatedApr 02, 2025
DataAggregated Company Financials
Companies477
  • 7D-5.2%
  • 3M-4.7%
  • 1Y14.0%
  • YTD-5.3%

Over the last 7 days, the Telecom industry has dropped 5.2%, driven by a pullback from Alphabet of 7.9%. This takes the industry's 12 month performance to a gain of 14%. Looking forward, earnings are forecast to grow by 14% 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$227.4b17.3x25x3.6x
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 25.0x 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 declined 10% per year over the last three years,
  • Revenues have also declined 5.5% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

Which industries have driven the changes within the U.S. Telecom sector?

US Market-2.98%
Telecom-5.19%
Wireless Telecom3.57%
Telecom Services and Carriers3.19%
Media-1.73%
Entertainment-4.89%
Interactive Media and Services-7.28%
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 25.2%, 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 0.34x.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 21% per year.
  • In contrast, the Media industry is expected to see its earnings grow by 9.6% 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
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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