Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Telecom Sector Analysis

UpdatedDec 28, 2025
DataAggregated Company Financials
Companies506
  • 7D1.5%
  • 3M4.6%
  • 1Y28.8%
  • YTD29.9%

Over the last 7 days, the Telecom industry has risen 1.4%, driven by gains from Alphabet of 2.1%. This takes the industry's 12 month performance to a gain of 29%. 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
Sun, 28 Dec 2025US$7.8tUS$1.6tUS$282.2b16.3x27.7x4.7x
Tue, 25 Nov 2025US$7.4tUS$1.6tUS$283.1b16.7x26.1x4.5x
Thu, 23 Oct 2025US$7.4tUS$1.6tUS$286.2b18.4x25.9x4.6x
Sat, 20 Sep 2025US$7.6tUS$1.6tUS$286.0b20.4x26.6x4.7x
Mon, 18 Aug 2025US$7.1tUS$1.6tUS$286.5b20.7x24.8x4.3x
Wed, 16 Jul 2025US$6.6tUS$1.6tUS$249.7b17.3x26.5x4.1x
Fri, 13 Jun 2025US$6.5tUS$1.6tUS$250.1b17.3x25.8x4x
Sun, 11 May 2025US$5.8tUS$1.6tUS$247.7b17.1x23.3x3.6x
Tue, 08 Apr 2025US$5.2tUS$1.6tUS$227.3b15x22.8x3.3x
Thu, 06 Mar 2025US$6.1tUS$1.6tUS$228.2b16.5x26.7x3.8x
Sat, 01 Feb 2025US$6.5tUS$1.6tUS$209.0b17.2x31.3x4.2x
Mon, 30 Dec 2024US$6.2tUS$1.6tUS$189.8b18.5x32.4x3.9x
Wed, 27 Nov 2024US$5.8tUS$1.6tUS$189.8b20.3x30.5x3.7x
Fri, 25 Oct 2024US$5.5tUS$1.5tUS$180.7b18.3x30.7x3.6x
Sun, 22 Sep 2024US$5.5tUS$1.5tUS$188.2b18.1x29.2x3.6x
Tue, 20 Aug 2024US$5.3tUS$1.6tUS$189.2b19.1x28.2x3.4x
Thu, 18 Jul 2024US$5.5tUS$1.5tUS$191.1b18.9x28.9x3.6x
Sat, 15 Jun 2024US$5.4tUS$1.5tUS$191.0b16.4x28.2x3.5x
Mon, 13 May 2024US$5.2tUS$1.5tUS$193.7b18.5x26.8x3.4x
Wed, 10 Apr 2024US$5.2tUS$1.5tUS$176.0b19.1x29.3x3.4x
Fri, 08 Mar 2024US$4.9tUS$1.5tUS$173.7b16.9x27.9x3.2x
Sun, 04 Feb 2024US$5.0tUS$1.5tUS$161.9b14.8x31x3.3x
Tue, 02 Jan 2024US$4.6tUS$1.5tUS$128.1b15.7x36.2x3x
Thu, 30 Nov 2023US$4.5tUS$1.5tUS$128.3b16x35.2x3x
Sat, 28 Oct 2023US$4.0tUS$1.5tUS$125.9b12.5x32x2.7x
Mon, 25 Sep 2023US$4.2tUS$1.5tUS$104.7b14.1x40.1x2.8x
Wed, 23 Aug 2023US$4.2tUS$1.5tUS$103.4b14x40.4x2.8x
Fri, 21 Jul 2023US$4.2tUS$1.5tUS$107.1b15.6x39.1x2.8x
Sun, 18 Jun 2023US$4.2tUS$1.5tUS$107.1b17.4x38.7x2.8x
Tue, 16 May 2023US$3.9tUS$1.5tUS$105.2b17.1x37.1x2.6x
Thu, 13 Apr 2023US$3.8tUS$1.5tUS$115.9b16.5x32.5x2.5x
Sat, 11 Mar 2023US$3.4tUS$1.5tUS$115.0b17.8x29.5x2.3x
Mon, 06 Feb 2023US$3.8tUS$1.5tUS$129.2b19.7x29.4x2.6x
Wed, 04 Jan 2023US$3.2tUS$1.5tUS$166.4b15.7x19.3x2.1x
Price to Earnings Ratio

19.3x


Total Market Cap: US$3.2tTotal Earnings: US$166.4bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 30.3x20242025
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 30.3x.
  • The 3-year average PS ratio of 3.4x is lower than the industry's current PS ratio of 4.8x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 19% per year over the last three years.
  • Revenues for these companies have grown 3.1% 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 Market1.25%
Telecom1.45%
Wireless Telecom2.18%
Interactive Media and Services1.56%
Telecom Services and Carriers1.26%
Entertainment1.02%
Media0.92%
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 19.6%, which is higher than its past year's earnings decline of 4.9% 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 2.1x.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 20% over the next 5 years.
  • This is better than its past earnings decline of 4.9% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 7.8% 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$313.512.1%
+US$76.6b		62.6%PE30.4x
META Meta PlatformsUS$663.290.7%
+US$11.4b		10.6%PE28.6x
TMUS T-Mobile USUS$201.002.2%
+US$4.8b		-9.9%PE18.9x
DIS Walt DisneyUS$113.562.1%
+US$4.1b		1.8%PE16.3x
T AT&TUS$24.652.1%
+US$3.5b		7.8%PE7.9x

Latest News

META
US$663.29
Meta Platforms
7D
0.7%
1Y
10.6%

META: Expanding AI Infrastructure And Power Investments Will Drive Durable Future Upside

Analysts have trimmed their blended price target for Meta Platforms by a few dollars to approximately $837 per share. This reflects slightly higher long term growth expectations tempered by modestly lower margin and valuation assumptions, as AI driven revenue gains are weighed against a steeper multiyear capex ramp.
WBD
US$28.80
Warner Bros. Discovery
7D
3.7%
1Y
171.4%

WBD: Bidding War Optimism Will Likely Fade Under Regulatory And Deal Execution Risks

Analysts have raised their fair value estimate for Warner Bros. Discovery to $20 from $10 per share, reflecting a lower perceived risk profile, an improved margin outlook and higher prospective takeout valuations amid rising price targets and renewed M&A speculation around the studio and streaming assets.
RDDT
US$225.77
Reddit
7D
-3.2%
1Y
30.1%

RDDT: Elevated Expectations Will Expose Growing Risk From Weakening User Engagement

We are raising our Reddit price target to approximately $151 from about $129, as analysts now expect faster revenue growth, better margins, and a more reasonable future earnings multiple. This view is supported by strong Q3 results, an above-consensus Q4 outlook, and continued momentum in both advertising and data licensing.
TTWO
US$256.09
Take-Two Interactive Software
7D
3.5%
1Y
37.4%
STUB
US$13.28
StubHub Holdings
7D
-3.6%
1Y
n/a
GOOGL
US$313.51
Alphabet
7D
2.1%
1Y
62.6%
ASTS
US$71.95
AST SpaceMobile
7D
-5.1%
1Y
213.9%
DIS
US$113.56
Walt Disney
7D
2.1%
1Y
1.8%
DJT
US$13.77
Trump Media & Technology Group
7D
-14.4%
1Y
-61.8%
T
US$24.65
AT&T
7D
2.1%
1Y
7.8%
VZ
US$40.48
Verizon Communications
7D
1.7%
1Y
1.4%
OMC
US$80.03
Omnicom Group
7D
-0.2%
1Y
-7.5%
TME
US$17.62
Tencent Music Entertainment Group
7D
-1.0%
1Y
50.3%

Calculating The Fair Value Of Tencent Music Entertainment Group (NYSE:TME)

Dec 16
Calculating The Fair Value Of Tencent Music Entertainment Group (NYSE:TME)
LUMN
US$7.69
Lumen Technologies
7D
-6.1%
1Y
40.1%

LUMN: Rising Debt Costs Will Likely Undermine Recent Free Cash Flow Gains

Analysts have raised their price target on Lumen Technologies to about $2.24 from $2.00 per share, citing stronger than expected Q3 execution, reaffirmed 2025 guidance, and balance sheet tailwinds from debt refinancing and a more favorable interest rate backdrop. Analyst Commentary While recent results and balance sheet actions have prompted upward revisions to price targets, not all market participants view Lumen's trajectory as uniformly positive.
TMUS
US$201.00
T-Mobile US
7D
2.2%
1Y
-9.9%
WSHP
US$111.85
WeShop Holdings
7D
-14.0%
1Y
n/a