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U.S. Telecom Sector Analysis
UpdatedFeb 22, 2025
DataAggregated Company Financials
Companies480
- 7D-4.0%
- 3M10.3%
- 1Y31.3%
- YTD4.6%
Over the last 7 days, the Telecom industry has dropped 1.8%, driven by a pullback from Meta Platforms of 4.6%. This takes the industry's 12 month performance to a gain of 34%. 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?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 22 Feb 2025 | US$6.4t | US$1.6t | US$225.2b | 20.4x | 28.2x | 4x |
| Mon, 20 Jan 2025 | US$6.2t | US$1.6t | US$189.6b | 19x | 32.6x | 3.9x |
| Wed, 18 Dec 2024 | US$6.3t | US$1.6t | US$189.7b | 18.7x | 33.3x | 4x |
| Fri, 15 Nov 2024 | US$5.9t | US$1.6t | US$189.4b | 19.4x | 31.3x | 3.8x |
| Sun, 13 Oct 2024 | US$5.6t | US$1.5t | US$188.2b | 18.6x | 30x | 3.7x |
| Tue, 10 Sep 2024 | US$5.1t | US$1.5t | US$191.2b | 18.8x | 26.7x | 3.3x |
| Thu, 08 Aug 2024 | US$5.1t | US$1.5t | US$201.9b | 20.2x | 25.4x | 3.3x |
| Sat, 06 Jul 2024 | US$5.6t | US$1.5t | US$191.3b | 16.5x | 29.1x | 3.7x |
| Mon, 03 Jun 2024 | US$5.3t | US$1.5t | US$191.0b | 16.4x | 27.6x | 3.5x |
| Wed, 01 May 2024 | US$4.9t | US$1.5t | US$193.3b | 17.5x | 25.6x | 3.2x |
| Fri, 29 Mar 2024 | US$5.1t | US$1.5t | US$175.8b | 18.9x | 28.8x | 3.4x |
| Sun, 25 Feb 2024 | US$4.9t | US$1.5t | US$175.3b | 18.3x | 27.9x | 3.3x |
| Tue, 23 Jan 2024 | US$4.8t | US$1.5t | US$128.1b | 14.8x | 37.3x | 3.1x |
| Thu, 21 Dec 2023 | US$4.6t | US$1.5t | US$127.9b | 16.1x | 36x | 3x |
| Sat, 18 Nov 2023 | US$4.5t | US$1.5t | US$127.2b | 15.4x | 35.2x | 2.9x |
| Mon, 16 Oct 2023 | US$4.3t | US$1.5t | US$104.7b | 14.9x | 41.3x | 2.9x |
| Wed, 13 Sep 2023 | US$4.4t | US$1.5t | US$104.4b | 13.6x | 41.8x | 2.9x |
| Fri, 11 Aug 2023 | US$4.3t | US$1.5t | US$102.6b | 15.2x | 41.9x | 2.9x |
| Sun, 09 Jul 2023 | US$4.1t | US$1.5t | US$106.8b | 17.2x | 38.6x | 2.8x |
| Tue, 06 Jun 2023 | US$4.1t | US$1.5t | US$107.4b | 16.2x | 37.8x | 2.7x |
| Thu, 04 May 2023 | US$3.7t | US$1.5t | US$110.7b | 16.9x | 33.9x | 2.5x |
| Sat, 01 Apr 2023 | US$3.8t | US$1.5t | US$115.4b | 17.5x | 32.7x | 2.5x |
| Mon, 27 Feb 2023 | US$3.4t | US$1.5t | US$115.4b | 18.7x | 29.6x | 2.3x |
| Wed, 25 Jan 2023 | US$3.6t | US$1.5t | US$167.8b | 18.6x | 21.2x | 2.4x |
| Fri, 23 Dec 2022 | US$3.1t | US$1.5t | US$166.5b | 15.7x | 18.9x | 2.1x |
| Sun, 20 Nov 2022 | US$3.3t | US$1.5t | US$163.4b | 17.4x | 20.2x | 2.2x |
| Tue, 18 Oct 2022 | US$3.2t | US$1.5t | US$187.6b | 14.5x | 17.1x | 2.2x |
| Thu, 15 Sep 2022 | US$3.6t | US$1.5t | US$187.6b | 15.7x | 19.1x | 2.4x |
| Sat, 13 Aug 2022 | US$4.1t | US$1.5t | US$186.6b | 18x | 21.8x | 2.7x |
| Mon, 11 Jul 2022 | US$3.9t | US$1.5t | US$214.3b | 17x | 18.3x | 2.7x |
| Wed, 08 Jun 2022 | US$4.6t | US$1.5t | US$214.2b | 18.2x | 21.6x | 3.2x |
| Fri, 06 May 2022 | US$4.1t | US$1.5t | US$217.7b | 18x | 18.6x | 2.8x |
| Sun, 03 Apr 2022 | US$4.8t | US$1.4t | US$224.3b | 20.1x | 21.3x | 3.3x |
| Tue, 01 Mar 2022 | US$4.7t | US$1.4t | US$226.0b | 17x | 20.9x | 3.3x |
Price to Earnings Ratio
20.9x
Current Industry PE
- Investors are relatively neutral on the American Communication Services industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 28.6x.
- The 3-year average PS ratio of 3.0x is lower than the industry's current PS ratio of 4.1x.
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 3.4% 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 | -2.23% | |
| Telecom | -3.97% | |
| Telecom Services and Carriers | 2.79% | |
| Media | -1.01% | |
| Wireless Telecom | -2.08% | |
| Entertainment | -3.94% | |
| Interactive Media and Services | -5.01% | |
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 25.9%, which is higher than its past year's earnings decline of 2.2% 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 0.059x.
Forecasted Growth
- Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 26% over the next 5 years.
- This is better than its past earnings decline of 2.2% per year.
- In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 10% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| VZ Verizon Communications | US$42.76 | 4.3% +US$7.5b | 5.2% | PE10.3x | |
| T AT&T | US$26.62 | 2.9% +US$5.4b | 58.5% | PE17.8x | |
| CMCSA Comcast | US$36.24 | 2.4% +US$3.2b | -13.5% | PE8.5x | |
| TME Tencent Music Entertainment Group | US$14.38 | 5.7% +US$1.2b | 40.6% | PE27.5x | |
| WBD Warner Bros. Discovery | US$10.78 | 4.3% +US$1.1b | 25.2% | PS0.7x |