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U.S. Telecom Sector Analysis
UpdatedJan 15, 2025
DataAggregated Company Financials
Companies477
- 7D-2.3%
- 3M8.2%
- 1Y35.8%
- YTD-1.1%
Over the last 7 days, the Telecom industry has dropped 2.3%, driven by Alphabet declining 2.2%. In contrast, Nebius Group has gained 20%. This takes the industry's 12 month performance to a gain of 36%. As for the next few years, earnings are expected to grow by 15% per annum.
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 |
|---|---|---|---|---|---|---|
| Wed, 15 Jan 2025 | US$6.0t | US$1.6t | US$189.6b | 19.6x | 31.7x | 3.8x |
| Fri, 13 Dec 2024 | US$6.4t | US$1.6t | US$189.5b | 18.7x | 33.6x | 4x |
| Sun, 10 Nov 2024 | US$5.9t | US$1.6t | US$188.8b | 18.9x | 31.2x | 3.8x |
| Tue, 08 Oct 2024 | US$5.7t | US$1.5t | US$188.2b | 18.3x | 30.2x | 3.7x |
| Thu, 05 Sep 2024 | US$5.2t | US$1.6t | US$189.1b | 18.8x | 27.7x | 3.4x |
| Sat, 03 Aug 2024 | US$5.3t | US$1.5t | US$202.5b | 19.4x | 26.4x | 3.5x |
| Mon, 01 Jul 2024 | US$5.5t | US$1.5t | US$191.3b | 16x | 28.8x | 3.6x |
| Wed, 29 May 2024 | US$5.3t | US$1.5t | US$191.0b | 16.8x | 27.8x | 3.5x |
| Fri, 26 Apr 2024 | US$4.9t | US$1.5t | US$183.4b | 17.8x | 26.8x | 3.2x |
| Sun, 24 Mar 2024 | US$5.1t | US$1.5t | US$175.9b | 18x | 28.9x | 3.4x |
| Tue, 20 Feb 2024 | US$4.8t | US$1.5t | US$174.0b | 16x | 27.7x | 3.2x |
| Thu, 18 Jan 2024 | US$4.6t | US$1.5t | US$128.1b | 15.1x | 36.2x | 3.1x |
| Sat, 16 Dec 2023 | US$4.6t | US$1.5t | US$128.0b | 16.7x | 35.8x | 3x |
| Mon, 13 Nov 2023 | US$4.4t | US$1.5t | US$125.7b | 13.1x | 34.6x | 2.9x |
| Wed, 11 Oct 2023 | US$4.4t | US$1.5t | US$104.7b | 14.3x | 42x | 2.9x |
| Fri, 08 Sep 2023 | US$4.3t | US$1.5t | US$104.4b | 14.7x | 41.1x | 2.9x |
| Sun, 06 Aug 2023 | US$4.3t | US$1.5t | US$103.2b | 14.9x | 41.5x | 2.9x |
| Tue, 04 Jul 2023 | US$4.1t | US$1.5t | US$107.0b | 17.2x | 38.8x | 2.8x |
| Thu, 01 Jun 2023 | US$4.0t | US$1.5t | US$107.2b | 14x | 37.5x | 2.7x |
| Sat, 29 Apr 2023 | US$3.8t | US$1.5t | US$113.1b | 16.4x | 33.9x | 2.6x |
| Mon, 27 Mar 2023 | US$3.7t | US$1.5t | US$115.3b | 16.4x | 32.2x | 2.5x |
| Wed, 22 Feb 2023 | US$3.5t | US$1.5t | US$121.7b | 19.4x | 28.8x | 2.4x |
| Fri, 20 Jan 2023 | US$3.4t | US$1.5t | US$166.4b | 17.6x | 20.5x | 2.3x |
| Sun, 18 Dec 2022 | US$3.2t | US$1.5t | US$166.5b | 15.4x | 19.1x | 2.1x |
| Tue, 15 Nov 2022 | US$3.3t | US$1.5t | US$163.4b | 18x | 20.1x | 2.2x |
| Thu, 13 Oct 2022 | US$3.4t | US$1.5t | US$187.6b | 15x | 18.2x | 2.3x |
| Sat, 10 Sep 2022 | US$3.8t | US$1.5t | US$187.5b | 16.3x | 20x | 2.5x |
| Mon, 08 Aug 2022 | US$3.9t | US$1.5t | US$190.6b | 16.8x | 20.4x | 2.6x |
| Wed, 06 Jul 2022 | US$3.8t | US$1.5t | US$214.3b | 17.5x | 17.9x | 2.6x |
| Fri, 03 Jun 2022 | US$4.6t | US$1.5t | US$216.6b | 17.7x | 21.2x | 3.1x |
| Sun, 01 May 2022 | US$4.0t | US$1.5t | US$217.8b | 17.7x | 18.2x | 2.7x |
| Tue, 29 Mar 2022 | US$4.8t | US$1.4t | US$224.5b | 19x | 21.2x | 3.3x |
| Thu, 24 Feb 2022 | US$4.6t | US$1.4t | US$225.8b | 16.1x | 20.3x | 3.2x |
| Sat, 22 Jan 2022 | US$4.9t | US$1.4t | US$194.7b | 19.4x | 25.3x | 3.5x |
Price to Earnings Ratio
25.3x
Current Industry PE
- Investors are optimistic on the American Communication Services industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 31.7x which is higher than its 3-year average PE of 28.3x.
- The 3-year average PS ratio of 3.0x is lower than the industry's current PS ratio of 3.8x.
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 3.9% 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 | -1.18% | |
| Telecom | -2.30% | |
| Wireless Telecom | -0.47% | |
| Media | -1.80% | |
| Telecom Services and Carriers | -1.96% | |
| Interactive Media and Services | -2.36% | |
| Entertainment | -2.86% | |
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 26.9%, which is higher than its past year's earnings decline of 8.3% per year.
- Investors are most pessimistic about the Wireless Telecom industry, which is trading below its 3-year average of 41.2x.
Forecasted Growth
- Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 27% over the next 5 years.
- This is better than its past earnings decline of 8.3% per year.
- In contrast, the Interactive Media and Services industry is expected to see its earnings grow by 12% 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 | |
|---|---|---|---|---|---|
| NBIS Nebius Group | US$36.89 | 20.0% +US$1.4b | n/a | PE42.9x | |
| DJT Trump Media & Technology Group | US$39.35 | 13.9% +US$1.0b | 70.7% | PS2531.6x | |
| SE Sea | US$110.44 | 1.0% +US$626.0m | 217.2% | PE652.1x | |
| BZ Kanzhun | US$14.05 | 5.5% +US$317.6m | 1.4% | PE30.6x | |
| LYV Live Nation Entertainment | US$131.28 | 0.7% +US$223.7m | 45.4% | PE146.4x |
