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U.S. Telecom Sector Analysis

UpdatedApr 24, 2025
DataAggregated Company Financials
Companies468
  • 7D3.0%
  • 3M-13.7%
  • 1Y13.9%
  • YTD-9.3%

Over the last 7 days, the Telecom industry has dropped 1.9%, driven by pullbacks in Alphabet and Meta Platforms of 3.1% and 4.1%, respectively. In contrast, Netflix has gained 6.6%. In the past year, the industry has gained 7.3%. As for the next few years, earnings are expected to grow by 13% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 24 Apr 2025US$5.5tUS$1.6tUS$229.1b16.2x24x3.5x
Sat, 22 Mar 2025US$5.8tUS$1.6tUS$228.1b17.6x25.5x3.7x
Mon, 17 Feb 2025US$6.6tUS$1.6tUS$218.0b19.9x30.3x4.2x
Wed, 15 Jan 2025US$6.0tUS$1.6tUS$189.6b19.6x31.7x3.8x
Fri, 13 Dec 2024US$6.4tUS$1.6tUS$189.5b18.7x33.6x4x
Sun, 10 Nov 2024US$5.9tUS$1.6tUS$188.8b18.9x31.2x3.8x
Tue, 08 Oct 2024US$5.7tUS$1.5tUS$188.2b18.3x30.2x3.7x
Thu, 05 Sep 2024US$5.2tUS$1.6tUS$189.1b18.8x27.7x3.4x
Sat, 03 Aug 2024US$5.3tUS$1.5tUS$202.5b19.4x26.4x3.5x
Mon, 01 Jul 2024US$5.5tUS$1.5tUS$191.3b16x28.8x3.6x
Wed, 29 May 2024US$5.3tUS$1.5tUS$191.0b16.8x27.8x3.5x
Fri, 26 Apr 2024US$4.9tUS$1.5tUS$183.4b17.8x26.8x3.2x
Sun, 24 Mar 2024US$5.1tUS$1.5tUS$175.9b18x28.9x3.4x
Tue, 20 Feb 2024US$4.8tUS$1.5tUS$174.0b16x27.7x3.2x
Thu, 18 Jan 2024US$4.6tUS$1.5tUS$128.1b15.1x36.2x3.1x
Sat, 16 Dec 2023US$4.6tUS$1.5tUS$128.0b16.7x35.8x3x
Mon, 13 Nov 2023US$4.4tUS$1.5tUS$125.7b13.1x34.6x2.9x
Wed, 11 Oct 2023US$4.4tUS$1.5tUS$104.7b14.3x42x2.9x
Fri, 08 Sep 2023US$4.3tUS$1.5tUS$104.4b14.7x41.1x2.9x
Sun, 06 Aug 2023US$4.3tUS$1.5tUS$103.2b14.9x41.5x2.9x
Tue, 04 Jul 2023US$4.1tUS$1.5tUS$107.0b17.2x38.8x2.8x
Thu, 01 Jun 2023US$4.0tUS$1.5tUS$107.2b14x37.5x2.7x
Sat, 29 Apr 2023US$3.8tUS$1.5tUS$113.1b16.4x33.9x2.6x
Mon, 27 Mar 2023US$3.7tUS$1.5tUS$115.3b16.4x32.2x2.5x
Wed, 22 Feb 2023US$3.5tUS$1.5tUS$121.7b19.4x28.8x2.4x
Fri, 20 Jan 2023US$3.4tUS$1.5tUS$166.4b17.6x20.5x2.3x
Sun, 18 Dec 2022US$3.2tUS$1.5tUS$166.5b15.4x19.1x2.1x
Tue, 15 Nov 2022US$3.3tUS$1.5tUS$163.4b18x20.1x2.2x
Thu, 13 Oct 2022US$3.4tUS$1.5tUS$187.6b15x18.2x2.3x
Sat, 10 Sep 2022US$3.8tUS$1.5tUS$187.5b16.3x20x2.5x
Mon, 08 Aug 2022US$3.9tUS$1.5tUS$190.6b16.8x20.4x2.6x
Wed, 06 Jul 2022US$3.8tUS$1.5tUS$214.3b17.5x17.9x2.6x
Fri, 03 Jun 2022US$4.6tUS$1.5tUS$216.6b17.7x21.2x3.1x
Sun, 01 May 2022US$4.0tUS$1.5tUS$217.8b17.7x18.2x2.7x
Price to Earnings Ratio

18.2x


Total Market Cap: US$4.0tTotal Earnings: US$217.8bTotal 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 23.0x which is lower than its 3-year average PE of 28.9x.
  • The industry is trading close to its 3-year average PS ratio of 3.0x.
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 2.8% 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 Market2.32%
Telecom3.04%
Entertainment5.60%
Interactive Media and Services3.28%
Media1.37%
Telecom Services and Carriers-0.76%
Wireless Telecom-0.88%
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 23.2%, which is lower than the prior year's growth of 27.2% 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 0.50x.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 23% 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 9.6% 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
GOOGL AlphabetUS$155.352.8%
+US$51.1b		-0.4%PE18.9x
META Meta PlatformsUS$520.273.7%
+US$47.4b		17.9%PE21.1x
NFLX NetflixUS$1.05k7.9%
+US$32.6b		85.8%PE48.2x
DIS Walt DisneyUS$87.295.5%
+US$8.2b		-23.4%PE28.1x
SPOT Spotify TechnologyUS$592.705.3%
+US$6.1b		110.8%PE94.1x
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