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

U.S. Telecom Sector Analysis

UpdatedAug 08, 2025
DataAggregated Company Financials
Companies484
  • 7D0.5%
  • 3M18.8%
  • 1Y33.9%
  • YTD13.4%

In the last week, Telecom has been flat. The past year has been better, since the industry has gained 34% in that time. Looking forward, earnings are forecast to grow by 12% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 08 Aug 2025US$6.9tUS$1.6tUS$273.1b19.5x25.1x4.2x
Sun, 06 Jul 2025US$6.6tUS$1.6tUS$250.2b18.1x26.6x4.1x
Tue, 03 Jun 2025US$6.2tUS$1.6tUS$249.9b17.2x24.9x3.9x
Thu, 01 May 2025US$5.7tUS$1.6tUS$240.3b16.9x23.6x3.6x
Sat, 29 Mar 2025US$5.9tUS$1.6tUS$227.8b17.2x25.9x3.7x
Mon, 24 Feb 2025US$6.4tUS$1.6tUS$225.2b20.4x28.2x4x
Wed, 22 Jan 2025US$6.2tUS$1.6tUS$189.7b18.7x32.6x3.9x
Fri, 20 Dec 2024US$6.1tUS$1.6tUS$189.7b18x32x3.9x
Sun, 17 Nov 2024US$5.8tUS$1.6tUS$189.7b19.4x30.4x3.7x
Tue, 15 Oct 2024US$5.6tUS$1.5tUS$188.2b18.6x30x3.7x
Thu, 12 Sep 2024US$5.2tUS$1.5tUS$188.2b18.7x27.4x3.3x
Sat, 10 Aug 2024US$5.2tUS$1.5tUS$190.1b20.9x27.5x3.4x
Mon, 08 Jul 2024US$5.7tUS$1.5tUS$191.3b16.5x29.8x3.7x
Wed, 05 Jun 2024US$5.3tUS$1.5tUS$191.0b15.6x27.7x3.5x
Fri, 03 May 2024US$5.0tUS$1.5tUS$194.7b18.3x25.7x3.3x
Sun, 31 Mar 2024US$5.1tUS$1.5tUS$176.2b18.8x28.7x3.4x
Tue, 27 Feb 2024US$4.8tUS$1.5tUS$174.7b18x27.5x3.2x
Thu, 25 Jan 2024US$4.8tUS$1.5tUS$144.7b14.6x33.3x3.2x
Sat, 23 Dec 2023US$4.6tUS$1.5tUS$127.9b15.6x36.3x3x
Mon, 20 Nov 2023US$4.5tUS$1.5tUS$127.2b16.3x35.1x2.9x
Wed, 18 Oct 2023US$4.4tUS$1.5tUS$104.7b16x42x2.9x
Fri, 15 Sep 2023US$4.3tUS$1.5tUS$104.4b14.5x41.6x2.9x
Sun, 13 Aug 2023US$4.3tUS$1.5tUS$102.5b14.9x41.7x2.9x
Tue, 11 Jul 2023US$4.1tUS$1.5tUS$106.8b16.9x38.4x2.8x
Thu, 08 Jun 2023US$4.1tUS$1.5tUS$107.1b16x38.4x2.8x
Sat, 06 May 2023US$3.7tUS$1.5tUS$107.3b15.9x35x2.5x
Mon, 03 Apr 2023US$3.8tUS$1.5tUS$115.4b16.9x32.7x2.5x
Wed, 01 Mar 2023US$3.4tUS$1.5tUS$115.5b18.6x29.8x2.3x
Fri, 27 Jan 2023US$3.6tUS$1.5tUS$141.8b18.8x25.5x2.5x
Sun, 25 Dec 2022US$3.2tUS$1.5tUS$166.4b16.1x19x2.1x
Tue, 22 Nov 2022US$3.3tUS$1.5tUS$163.4b17.4x20x2.2x
Thu, 20 Oct 2022US$3.3tUS$1.5tUS$187.5b15x17.8x2.2x
Sat, 17 Sep 2022US$3.5tUS$1.5tUS$187.6b15.4x18.7x2.4x
Mon, 15 Aug 2022US$4.1tUS$1.5tUS$186.7b18x21.8x2.7x
Price to Earnings Ratio

21.8x


Total Market Cap: US$4.1tTotal Earnings: US$186.7bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 29.5x202320242025
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 25.1x which is lower than its 3-year average PE of 29.5x.
  • The 3-year average PS ratio of 3.1x is lower than the industry's current PS ratio of 4.2x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 14% per year over the last three years.
  • Revenues for these companies have grown 3.2% 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 Market0.20%
Telecom0.46%
Wireless Telecom1.90%
Telecom Services and Carriers0.94%
Interactive Media and Services0.74%
Entertainment-0.17%
Media-2.55%
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 22.7%, which is lower than the prior year's growth of 27.1% per year.
  • Investors are most pessimistic about the Media industry, which is trading below its 3-year average of 19.4x.
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 5.3% 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$196.522.4%
+US$55.9b		21.3%PE20.6x
SPOT Spotify TechnologyUS$686.749.6%
+US$12.4b		103.0%PE150.5x
RDDT RedditUS$211.8231.9%
+US$10.0b		285.5%PE183.2x
NFLX NetflixUS$1.18k1.8%
+US$8.9b		87.3%PE48.9x
TMUS T-Mobile USUS$242.931.9%
+US$5.1b		25.5%PE22.4x

Latest News

META
US$761.83
Meta Platforms
7D
-1.5%
1Y
49.5%
T
US$28.06
AT&T
7D
2.4%
1Y
44.6%
RBLX
US$129.63
Roblox
7D
-5.9%
1Y
248.7%
CMCSA
US$31.67
Comcast
7D
-2.6%
1Y
-19.0%
EA
US$162.75
Electronic Arts
7D
6.7%
1Y
10.7%
TMUS
US$242.93
T-Mobile US
7D
1.9%
1Y
25.5%
DIS
US$112.88
Walt Disney
7D
-5.2%
1Y
31.3%
SNAP
US$7.54
Snap
7D
-20.0%
1Y
-15.7%
RDDT
US$211.82
Reddit
7D
31.9%
1Y
285.5%
ROKU
US$83.11
Roku
7D
-11.7%
1Y
49.5%
SPOT
US$686.74
Spotify Technology
7D
9.6%
1Y
103.0%
TME
US$21.97
Tencent Music Entertainment Group
7D
4.7%
1Y
62.1%
NFLX
US$1,180.37
Netflix
7D
1.8%
1Y
87.3%
SE
US$148.86
Sea
7D
-5.0%
1Y
137.6%

Is Now The Time To Put Sea (NYSE:SE) On Your Watchlist?

Aug 01
Is Now The Time To Put Sea (NYSE:SE) On Your Watchlist?
GOOGL
US$196.52
Alphabet
7D
2.4%
1Y
21.3%

Additional Considerations Required While Assessing Alphabet's (NASDAQ:GOOGL) Strong Earnings

Jul 31
Additional Considerations Required While Assessing Alphabet's (NASDAQ:GOOGL) Strong Earnings
WBD
US$11.86
Warner Bros. Discovery
7D
-7.8%
1Y
68.8%