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

U.S. Telecom Sector Analysis

UpdatedJul 22, 2026
DataAggregated Company Financials
Companies478
  • 7D-3.7%
  • 3M-2.4%
  • 1Y19.6%
  • YTD-3.8%

Over the last 7 days, the Telecom industry has dropped 3.3%, driven by declines in Space Exploration Technologies and Alphabet of 9.2% and 3.4%, respectively. This takes the industry's 12 month performance to a gain of 20%. As for the next few years, earnings are expected to grow by 22% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 22 Jul 2026US$9.5tUS$1.7tUS$301.1b19.3x31.5x5.5x
Fri, 19 Jun 2026US$10.3tUS$1.7tUS$298.8b18.6x34.5x5.9x
Sun, 17 May 2026US$8.4tUS$1.7tUS$308.3b15.9x27.4x4.9x
Tue, 14 Apr 2026US$7.7tUS$1.7tUS$272.3b15.6x28.2x4.6x
Thu, 12 Mar 2026US$7.6tUS$1.7tUS$272.4b18.4x28x4.5x
Sat, 07 Feb 2026US$7.9tUS$1.7tUS$283.0b16.1x27.8x4.7x
Mon, 05 Jan 2026US$7.8tUS$1.6tUS$282.6b16.1x27.5x4.7x
Wed, 03 Dec 2025US$7.8tUS$1.6tUS$282.4b16.3x27.5x4.7x
Fri, 31 Oct 2025US$7.6tUS$1.6tUS$292.5b17.1x26.1x4.6x
Sun, 28 Sep 2025US$7.4tUS$1.6tUS$286.1b19.5x26x4.6x
Tue, 26 Aug 2025US$7.0tUS$1.6tUS$287.3b20.4x24.5x4.3x
Thu, 24 Jul 2025US$6.7tUS$1.6tUS$250.3b19.5x26.8x4.2x
Sat, 21 Jun 2025US$6.4tUS$1.6tUS$250.2b16.8x25.6x4x
Mon, 19 May 2025US$6.2tUS$1.6tUS$247.2b17.5x24.9x3.8x
Wed, 16 Apr 2025US$5.5tUS$1.6tUS$227.2b16.1x24.3x3.5x
Fri, 14 Mar 2025US$5.9tUS$1.6tUS$228.3b15.9x25.8x3.7x
Sun, 09 Feb 2025US$6.5tUS$1.6tUS$218.8b19.1x29.6x4.1x
Tue, 07 Jan 2025US$6.1tUS$1.6tUS$189.8b18.6x32.3x3.9x
Thu, 05 Dec 2024US$6.0tUS$1.6tUS$189.8b19.8x31.8x3.8x
Sat, 02 Nov 2024US$5.7tUS$1.6tUS$187.4b18.1x30.3x3.6x
Mon, 30 Sep 2024US$5.6tUS$1.5tUS$188.3b19.2x29.7x3.6x
Wed, 28 Aug 2024US$5.4tUS$1.6tUS$189.2b19.7x28.6x3.5x
Fri, 26 Jul 2024US$5.2tUS$1.5tUS$196.3b20.6x26.6x3.4x
Sun, 23 Jun 2024US$5.4tUS$1.5tUS$191.1b16.4x28.4x3.6x
Tue, 21 May 2024US$5.4tUS$1.5tUS$191.3b19.6x28.2x3.5x
Thu, 18 Apr 2024US$5.0tUS$1.5tUS$176.3b17.6x28.5x3.3x
Sat, 16 Mar 2024US$4.9tUS$1.5tUS$175.6b18.1x28x3.3x
Mon, 12 Feb 2024US$4.9tUS$1.5tUS$172.3b14.4x28.4x3.3x
Wed, 10 Jan 2024US$4.6tUS$1.5tUS$128.1b15.2x36.3x3.1x
Fri, 08 Dec 2023US$4.4tUS$1.5tUS$128.1b15.7x34x2.9x
Sun, 05 Nov 2023US$4.3tUS$1.5tUS$123.6b13.2x34.7x2.8x
Tue, 03 Oct 2023US$4.2tUS$1.5tUS$104.7b14x40.3x2.8x
Thu, 31 Aug 2023US$4.3tUS$1.5tUS$104.3b14.2x41.6x2.9x
Sat, 29 Jul 2023US$4.3tUS$1.5tUS$110.7b15.9x38.8x2.9x
Price to Earnings Ratio

38.8x


Total Market Cap: US$4.3tTotal Earnings: US$110.7bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 29.7x202420252026
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 29.7x.
  • The 3-year average PS ratio of 3.9x is lower than the industry's current PS ratio of 5.4x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 40% per year over the last three years.
  • Revenues for these companies have grown 5.2% 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-0.68%
Telecom-3.74%
Wireless Telecom1.66%
Media-0.16%
Entertainment-2.47%
Interactive Media and Services-3.19%
Telecom Services and Carriers-6.74%
Industry PE
  • Investors are most optimistic about the Telecom Services and Carriers industry which is trading above its 3-year average PE ratio of 1.2x.
    • Analysts are expecting annual earnings growth of 49.0%, which is higher than its past year's earnings decline of 9.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom Services and Carriers industry, expecting annual earnings growth of 49% over the next 5 years.
  • This is better than its past earnings decline of 9.7% per year.
  • In contrast, the Wireless Telecom 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?

CompanyLast Price7D1YValuation
T AT&TUS$22.264.6%
+US$6.8b		-18.8%PE7.3x
VZ Verizon CommunicationsUS$43.783.1%
+US$5.5b		1.9%PE10.5x
TMUS T-Mobile USUS$190.771.9%
+US$3.9b		-18.2%PE19.6x
SPOT Spotify TechnologyUS$493.232.5%
+US$2.5b		-27.0%PE32.8x
CMCSA ComcastUS$23.812.7%
+US$2.2b		-32.5%PE4.5x

Latest News

DIS
US$96.14
Walt Disney
7D
0.3%
1Y
-20.6%
GOOGL
US$347.15
Alphabet
7D
-3.4%
1Y
81.4%
Seeking Alpha • Jul 21

Alphabet Q2 Preview: Brace For A Blowout EPS That Won't Mean What You Think

Summary I stayed constructive through the $84.75 billion raise, but I'm downgrading to hold now, and dilution or CapEx isn't the main reason. In my view, Alphabet's record profit in Q1 may have been driven by its stake in Anthropic (think equity markups), and that's the part I no longer want to ignore. Series H priced Anthropic at two and a half times Series G, so I expect an even bigger markup this print, given that Series H happened during the second quarter. I won't chase a $4, $5, or even $8 EPS number on Wednesday if other income is doing most of the work, and not the operating business. I'm not bearish on Alphabet, just concerned with the market's reaction to a headline EPS that I believe may be mostly driven by marks, not the ads/cloud/YouTube business. Read the full article on Seeking Alpha
META
US$643.81
Meta Platforms
7D
-2.6%
1Y
-8.7%
NFLX
US$68.67
Netflix
7D
-6.6%
1Y
-42.3%
New Narrative • Jul 20

Fair value of $81.50 suggests Netflix's strong future

Netflix (NASDAQ: NFLX) — Full Equity Underwrite Research posture: Constructive long term, cautious near term Price: $68.95 at the July 17, 2026 close Data cut-off: July 17, 2026 Short-term score: 46/100 — Mixed Long-term score: 80/100 — Strong The analysis follows the uploaded full-company, business-model, performance, risk and management frameworks. Valuation is structured around the valuation-method, DCF, reverse-DCF, price-trend and investment-score modules.
T
US$22.26
AT&T
7D
4.6%
1Y
-18.8%
Narrative Update • Jul 20

T: Fiber And Satellite Partnerships Will Drive Future Converged Connectivity Returns

Analysts have modestly reduced their price target for AT&T to $29.03 from $30.24, reflecting slightly lower fair value and valuation assumptions, including a reduced future P/E estimate, while keeping revenue growth and profit margin expectations broadly similar. What's in the News Dish DBS, a subsidiary of EchoStar, filed for prepackaged Chapter 11 bankruptcy after it could not repay US$2b in senior secured notes due July 1.
SPCX
US$123.54
Space Exploration Technologies
7D
-9.2%
1Y
n/a
EA
US$209.04
Electronic Arts
7D
1.2%
1Y
33.1%
RDDT
US$185.84
Reddit
7D
-8.6%
1Y
27.5%
WBD
US$25.83
Warner Bros. Discovery
7D
-6.0%
1Y
101.0%
RBLX
US$52.50
Roblox
7D
-3.6%
1Y
-56.3%
ASTS
US$63.34
AST SpaceMobile
7D
-8.0%
1Y
10.9%
Seeking Alpha • Jul 17

AST SpaceMobile: Why I Bought The Dip

Summary AST SpaceMobile has dropped nearly 60%, but dilution was only the catalyst after weakening sentiment, execution concerns, and an unsustainably rich valuation. Nearly 60 global carriers have committed over $1.2 billion, providing access to more than 3 billion subscribers worldwide. Consensus expects revenue to grow from $170 million in 2026 to $2.84 billion by 2029, rapidly compressing valuation multiples. August's BlueBird Block 2 launch, Rakuten expansion, and commercialization milestones could fundamentally reshape investor sentiment during 2026. Despite execution risks, the recent correction offers a significantly improved risk-reward profile for long-term investors willing to tolerate volatility. Read the full article on Seeking Alpha
TMUS
US$190.77
T-Mobile US
7D
1.9%
1Y
-18.2%
Seeking Alpha • Jul 17

AT&T Q2 Earnings Preview: The Satellite Threat Is Overstated, But AT&T Still Has Two Questions To Answer

Summary AT&T has benefited from the wireless industry's shift to a stable triopoly, enabling price increases and modest recovery. T's growth initiatives include aggressive fiber expansion, innovative wireless plans targeting single-line users, and experimental convergence offerings. Risks remain: upcoming spectrum purchases may strain the balance sheet, and cable companies threaten to disrupt the triopoly with growing wireless subscriber bases. While T's near-term earnings outlook is solid, risk-reward is only average; I am not opening a position at this time. Read the full article on Seeking Alpha
CMCSA
US$23.81
Comcast
7D
2.7%
1Y
-32.5%
FOXA
US$57.57
Fox
7D
4.9%
1Y
3.0%
VZ
US$43.78
Verizon Communications
7D
3.1%
1Y
1.9%
Seeking Alpha • Jul 15

Verizon: Executing Amid Industry Uncertainty, Raising My Target

Summary Verizon is reiterated as a "Buy," with an attractive valuation and a high 6.66% forward dividend yield. VZ raised its FY 2026 EPS guidance to $4.95–$4.99, supported by strong postpaid phone and broadband net adds. Despite competition risks and technical weakness, VZ’s fundamentals remain solid, with $6.55 free cash flow per share over the past year. The recent correction brings VZ into a key support zone, offering a favorable entry ahead of the July 24 Q2 earnings report. Read the full article on Seeking Alpha
SPOT
US$493.23
Spotify Technology
7D
2.5%
1Y
-27.0%