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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%
In the last week, the Telecom industry is up 3.0%, with Alphabet leading the way, up 2.8%. This takes the industry's 12 month performance to a gain of 14%. 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?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 25 Apr 2025 | US$5.5t | US$1.6t | US$229.1b | 16.2x | 24x | 3.5x |
| Sun, 23 Mar 2025 | US$5.9t | US$1.6t | US$228.2b | 17.6x | 25.7x | 3.7x |
| Tue, 18 Feb 2025 | US$6.6t | US$1.6t | US$218.0b | 19.9x | 30.3x | 4.2x |
| Thu, 16 Jan 2025 | US$6.0t | US$1.6t | US$189.6b | 19.3x | 31.7x | 3.8x |
| Sat, 14 Dec 2024 | US$6.3t | US$1.6t | US$189.5b | 18.7x | 33.3x | 4x |
| Mon, 11 Nov 2024 | US$5.9t | US$1.6t | US$188.8b | 18.9x | 31.1x | 3.7x |
| Wed, 09 Oct 2024 | US$5.6t | US$1.5t | US$188.2b | 18.4x | 29.8x | 3.6x |
| Fri, 06 Sep 2024 | US$5.2t | US$1.6t | US$189.2b | 18.8x | 27.6x | 3.4x |
| Sun, 04 Aug 2024 | US$5.2t | US$1.5t | US$202.5b | 19.9x | 25.9x | 3.4x |
| Tue, 02 Jul 2024 | US$5.5t | US$1.5t | US$191.3b | 18x | 28.8x | 3.6x |
| Thu, 30 May 2024 | US$5.3t | US$1.5t | US$191.0b | 16.4x | 27.9x | 3.5x |
| Sat, 27 Apr 2024 | US$5.1t | US$1.5t | US$192.7b | 17.9x | 26.5x | 3.4x |
| Mon, 25 Mar 2024 | US$5.1t | US$1.5t | US$175.7b | 18x | 28.9x | 3.4x |
| Wed, 21 Feb 2024 | US$4.8t | US$1.5t | US$174.0b | 15.9x | 27.7x | 3.2x |
| Fri, 19 Jan 2024 | US$4.7t | US$1.5t | US$128.1b | 15.3x | 36.7x | 3.1x |
| Sun, 17 Dec 2023 | US$4.6t | US$1.5t | US$128.0b | 16.7x | 35.8x | 3x |
| Tue, 14 Nov 2023 | US$4.3t | US$1.5t | US$125.7b | 13.7x | 34.6x | 2.9x |
| Thu, 12 Oct 2023 | US$4.4t | US$1.5t | US$104.7b | 14.7x | 42.4x | 3x |
| Sat, 09 Sep 2023 | US$4.3t | US$1.5t | US$104.3b | 14.1x | 41.2x | 2.9x |
| Mon, 07 Aug 2023 | US$4.3t | US$1.5t | US$103.2b | 14.9x | 41.5x | 2.9x |
| Wed, 05 Jul 2023 | US$4.1t | US$1.5t | US$107.0b | 17.2x | 38.8x | 2.8x |
| Fri, 02 Jun 2023 | US$4.1t | US$1.5t | US$107.4b | 14.1x | 37.8x | 2.7x |
| Sun, 30 Apr 2023 | US$3.8t | US$1.5t | US$113.1b | 16.4x | 33.9x | 2.6x |
| Tue, 28 Mar 2023 | US$3.7t | US$1.5t | US$115.3b | 16.9x | 31.9x | 2.5x |
| Thu, 23 Feb 2023 | US$3.5t | US$1.5t | US$121.9b | 19.7x | 28.7x | 2.4x |
| Sat, 21 Jan 2023 | US$3.5t | US$1.5t | US$165.9b | 17.8x | 21.3x | 2.3x |
| Mon, 19 Dec 2022 | US$3.2t | US$1.5t | US$166.5b | 15.4x | 19.1x | 2.1x |
| Wed, 16 Nov 2022 | US$3.4t | US$1.5t | US$163.1b | 17.7x | 20.6x | 2.2x |
| Fri, 14 Oct 2022 | US$3.3t | US$1.5t | US$187.6b | 14.8x | 17.5x | 2.2x |
| Sun, 11 Sep 2022 | US$3.8t | US$1.5t | US$187.5b | 16.3x | 20x | 2.5x |
| Tue, 09 Aug 2022 | US$3.9t | US$1.5t | US$191.5b | 16.8x | 20.4x | 2.6x |
| Thu, 07 Jul 2022 | US$3.8t | US$1.5t | US$214.3b | 17x | 17.9x | 2.6x |
| Sat, 04 Jun 2022 | US$4.6t | US$1.5t | US$216.6b | 17.7x | 21.3x | 3.1x |
| Mon, 02 May 2022 | US$4.0t | US$1.5t | US$218.3b | 18.1x | 18.2x | 2.7x |
Price to Earnings Ratio
18.2x
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 24.0x which is lower than its 3-year average PE of 28.9x.
- The 3-year average PS ratio of 3.0x is lower than the industry's current PS ratio of 3.5x.
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 Market | 2.32% | |
| Telecom | 3.04% | |
| Entertainment | 5.60% | |
| Interactive Media and Services | 3.28% | |
| Media | 1.37% | |
| 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 23.1%, 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 9.7% 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 | |
|---|---|---|---|---|---|
| GOOGL Alphabet | US$159.03 | 5.2% +US$96.0b | 1.9% | PE19.4x | |
| META Meta Platforms | US$533.15 | 6.3% +US$79.9b | 20.8% | PE21.6x | |
| NFLX Netflix | US$1.10k | 12.7% +US$52.7b | 94.2% | PE50.4x | |
| DIS Walt Disney | US$90.01 | 6.1% +US$9.4b | -20.2% | PE29x | |
| SPOT Spotify Technology | US$605.95 | 5.5% +US$6.5b | 109.7% | PE95.7x |
