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U.S. Telecom Sector Analysis

UpdatedSep 11, 2026
DataAggregated Company Financials
Companies476
  • 7D-1.3%
  • 3M-3.7%
  • 1Y3.9%
  • YTD-2.8%

Last week, the Telecom industry hasn't moved much but Meta Platforms is up 5.5% in that time. The past year has been better, since the industry has gained 4.4% in that time. Looking forward, earnings are forecast to grow by 18% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 11 Sep 2026US$9.8tUS$1.8tUS$384.7b18.2x25.4x5.5x
Sun, 09 Aug 2026US$9.7tUS$1.8tUS$383.0b19.3x25.3x5.4x
Tue, 07 Jul 2026US$10.0tUS$1.7tUS$300.8b18.7x33.2x5.7x
Thu, 04 Jun 2026US$8.0tUS$1.7tUS$308.8b17x25.9x4.6x
Sat, 02 May 2026US$8.4tUS$1.7tUS$311.4b17.6x26.9x4.9x
Mon, 30 Mar 2026US$6.8tUS$1.7tUS$272.8b15x25x4.1x
Wed, 25 Feb 2026US$7.6tUS$1.7tUS$275.7b15.4x27.4x4.5x
Fri, 23 Jan 2026US$7.8tUS$1.7tUS$283.0b16.4x27.5x4.7x
Sun, 21 Dec 2025US$7.7tUS$1.6tUS$280.9b16.4x27.4x4.7x
Tue, 18 Nov 2025US$7.2tUS$1.6tUS$285.5b16.6x25.3x4.4x
Thu, 16 Oct 2025US$7.3tUS$1.6tUS$286.1b18x25.4x4.5x
Sat, 13 Sep 2025US$7.4tUS$1.6tUS$286.1b20.7x25.8x4.6x
Mon, 11 Aug 2025US$6.9tUS$1.6tUS$285.6b20.7x24.2x4.2x
Wed, 09 Jul 2025US$6.6tUS$1.6tUS$250.2b17.8x26.4x4.1x
Fri, 06 Jun 2025US$6.3tUS$1.6tUS$249.9b17.4x25.3x3.9x
Sun, 04 May 2025US$5.9tUS$1.6tUS$245.7b16.7x24x3.7x
Tue, 01 Apr 2025US$5.7tUS$1.6tUS$227.4b17.8x25x3.6x
Thu, 27 Feb 2025US$6.2tUS$1.6tUS$225.2b17.7x27.6x3.9x
Sat, 25 Jan 2025US$6.3tUS$1.6tUS$190.6b18.8x33.3x4x
Mon, 23 Dec 2024US$6.1tUS$1.6tUS$189.6b17.8x32.2x3.9x
Wed, 20 Nov 2024US$5.9tUS$1.6tUS$189.7b20x31x3.7x
Fri, 18 Oct 2024US$5.6tUS$1.5tUS$188.2b18.5x30x3.7x
Sun, 15 Sep 2024US$5.3tUS$1.5tUS$188.1b18.7x28.2x3.4x
Tue, 13 Aug 2024US$5.3tUS$1.5tUS$189.8b21x27.8x3.4x
Thu, 11 Jul 2024US$5.7tUS$1.5tUS$191.3b17.3x29.6x3.7x
Sat, 08 Jun 2024US$5.4tUS$1.5tUS$191.0b15.3x28.3x3.5x
Mon, 06 May 2024US$5.1tUS$1.5tUS$194.6b18.5x26.3x3.4x
Wed, 03 Apr 2024US$5.1tUS$1.5tUS$176.1b19x29x3.4x
Fri, 01 Mar 2024US$4.8tUS$1.5tUS$174.2b18.2x27.6x3.2x
Sun, 28 Jan 2024US$5.0tUS$1.5tUS$145.5b15.1x34.2x3.3x
Tue, 26 Dec 2023US$4.6tUS$1.5tUS$127.9b15.6x36.3x3x
Thu, 23 Nov 2023US$4.5tUS$1.5tUS$127.3b16.3x35.3x3x
Sat, 21 Oct 2023US$4.3tUS$1.5tUS$102.5b14.9x41.8x2.9x
Mon, 18 Sep 2023US$4.3tUS$1.5tUS$104.4b14.1x41.6x2.9x
Price to Earnings Ratio

41.6x


Total Market Cap: US$4.3tTotal Earnings: US$104.4bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 29x202420252026
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 25.7x which is lower than its 3-year average PE of 29.0x.
  • The 3-year average PS ratio of 4.0x is lower than the industry's current PS ratio of 5.5x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 54% per year over the last three years.
  • Revenues for these companies have grown 6.1% 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 Market-2.20%
Telecom-1.32%
Interactive Media and Services-0.64%
Telecom Services and Carriers-1.32%
Media-2.47%
Entertainment-4.17%
Wireless Telecom-4.87%
Industry PE
  • Investors are most optimistic about the Telecom Services and Carriers industry which is trading above its 3-year average PE ratio of 9.2x.
    • Analysts are expecting annual earnings growth of 47.0%, which is higher than its past year's earnings decline of 16.2% per year.
  • Investors are most pessimistic about the Wireless Telecom industry, which is trading below its 3-year average of 22.6x.
Forecasted Growth
  • Analysts are most optimistic on the Telecom Services and Carriers industry, expecting annual earnings growth of 47% over the next 5 years.
  • This is better than its past earnings decline of 16% per year.
  • In contrast, the Interactive Media and Services industry is expected to see its earnings grow by 4.2% 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
META Meta PlatformsUS$644.385.5%
+US$85.9b		-14.2%PE24.1x
RBLX RobloxUS$44.888.1%
+US$2.4b		-66.2%PS5.6x
ECHO EchoStarUS$91.852.3%
+US$598.4m		19.2%PS1.8x
TTWO Take-Two Interactive SoftwareUS$216.961.3%
+US$529.2m		-12.0%PS6.1x
APP AppLovinUS$314.490.3%
+US$304.5m		-45.0%PE23.9x

Latest News

META
US$644.38
Meta Platforms
7D
5.5%
1Y
-14.2%
VZ
US$49.97
Verizon Communications
7D
-1.2%
1Y
13.2%
T
US$25.55
AT&T
7D
-2.4%
1Y
-13.4%
SPOT
US$521.73
Spotify Technology
7D
-6.9%
1Y
-24.4%
Seeking Alpha • 20h

Spotify Still Looks Like A Hold Despite Better Fundamentals

Summary Spotify has shifted focus from pure growth to disciplined profitability, with Q2 2026 gross margin at 33.4% and strong free cash flow. SPOT’s monetization is expanding via higher ARPU, Audiobooks+ add-ons, and a revamped, more automated ad business supporting double-digit ad growth targets. Management maintains mid-teen revenue growth and 35–40% gross margin targets, with operating margin aimed above 20% by 2030 and a robust €9.4B net cash position. Despite operational improvements, SPOT’s premium valuation and visible risks justify a Hold rating, as most upside appears priced in and cost risks remain material. Read the full article on Seeking Alpha
TTWO
US$216.96
Take-Two Interactive Software
7D
1.3%
1Y
-12.0%
NFLX
US$76.01
Netflix
7D
-8.1%
1Y
-36.8%
GOOGL
US$332.60
Alphabet
7D
-2.9%
1Y
38.4%
TMUS
US$177.16
T-Mobile US
7D
-5.8%
1Y
-26.6%
VEON
US$69.16
VEON
7D
4.4%
1Y
29.0%
BAND
US$51.62
Bandwidth
7D
9.6%
1Y
214.8%
SPCX
US$148.18
Space Exploration Technologies
7D
-1.0%
1Y
n/a
Seeking Alpha • Sep 04

SpaceX: I Was A Bear, But Now I See Clear Upside

Summary SpaceX is rated Strong Buy with a $220 price target, implying 47% upside driven by robust AI growth. SPCX operates three segments: Connectivity (55% of revenue), AI (33%), and Space (12%), each in aggressive ramp mode. AI, especially post-xAI acquisition, is the primary long-term growth driver, projected to reach a ~$330B top line by decade’s end. Valuation is demanding (82.3x EV/EBITDA), but DCF supports upside; risks include capital intensity, competition, and secondary offerings. Read the full article on Seeking Alpha
APP
US$314.49
AppLovin
7D
0.3%
1Y
-45.0%
Narrative Update • Sep 04

APP: Accelerating Buybacks And Q3 Guidance Will Support Future Upside

Analysts have reduced their fair value estimate for AppLovin to $734.96 from $813.93 as they update assumptions around discount rates, revenue growth, profit margins, and future P/E expectations. What’s in the News for AppLovin Between April 1, 2026 and June 30, 2026, AppLovin repurchased 1,805,000 shares for US$1,123.11 million, representing 0.54% of its shares, under its existing buyback program.
ECHO
US$91.85
EchoStar
7D
2.3%
1Y
19.2%
Narrative Update • Sep 03

ECHO: SpaceX Spectrum Deal Will Shape A Bullish Long Term Outlook

EchoStar's analyst fair value estimate has shifted from $137.60 to about $128.43 as analysts trim price targets toward the $115 to $137 range, pointing to higher required returns, softer margin expectations, and continued focus on the stock's discount to its asset base and potential catalysts. Analyst Commentary Recent Street research on EchoStar points to a mix of optimism on underlying asset value and caution around execution, capital returns, and subscriber trends.
RBLX
US$44.88
Roblox
7D
8.1%
1Y
-66.2%
Narrative Update • Sep 03

RBLX: Safety And Engagement Investments Will Support Long Term Platform Upside

The updated analyst price target for Roblox moves lower to align with a new fair value estimate of about $48, as analysts factor in softer bookings trends, reduced revenue growth assumptions, and a lower future P/E multiple, despite slightly stronger projected profit margins. Analyst Commentary Street research on Roblox points to a reset in expectations after recent Q2 results and Q3 guidance.
CMCSA
US$25.17
Comcast
7D
-5.6%
1Y
-24.6%
ANGX
US$5.38
Angel Studios
7D
19.8%
1Y
-58.6%