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

U.S. Telecom Sector Analysis

UpdatedJul 26, 2026
DataAggregated Company Financials
Companies477
  • 7D-6.3%
  • 3M-9.4%
  • 1Y11.5%
  • YTD-10.0%

Over the last 7 days, the Telecom industry has dropped 6.3%, driven by a pullback from Alphabet of 7.8%. On the other hand AT&T is actually up 11%. In the past year, the industry has gained 12%. Looking forward, earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 26 Jul 2026US$8.9tUS$1.8tUS$378.8b18.3x23.5x5x
Tue, 23 Jun 2026US$10.2tUS$1.7tUS$300.7b17.7x33.8x5.8x
Thu, 21 May 2026US$8.3tUS$1.7tUS$307.1b16.9x27.2x4.8x
Sat, 18 Apr 2026US$8.1tUS$1.7tUS$272.3b16.8x29.6x4.8x
Mon, 16 Mar 2026US$7.4tUS$1.7tUS$272.5b17.7x27.3x4.4x
Wed, 11 Feb 2026US$7.8tUS$1.7tUS$283.5b16.7x27.4x4.6x
Fri, 09 Jan 2026US$7.8tUS$1.6tUS$282.4b16.5x27.8x4.8x
Sun, 07 Dec 2025US$7.9tUS$1.6tUS$281.0b16.4x28.2x4.8x
Tue, 04 Nov 2025US$7.5tUS$1.6tUS$296.2b17.5x25.2x4.6x
Thu, 02 Oct 2025US$7.3tUS$1.6tUS$286.1b18.8x25.6x4.5x
Sat, 30 Aug 2025US$7.1tUS$1.6tUS$287.3b20.7x24.8x4.4x
Mon, 28 Jul 2025US$6.7tUS$1.6tUS$256.9b18.9x26.2x4.2x
Wed, 25 Jun 2025US$6.4tUS$1.6tUS$250.1b17.4x25.7x4x
Fri, 23 May 2025US$6.1tUS$1.6tUS$248.0b17.1x24.8x3.8x
Sun, 20 Apr 2025US$5.4tUS$1.6tUS$227.2b16x23.6x3.4x
Tue, 18 Mar 2025US$5.9tUS$1.6tUS$228.4b15.9x25.7x3.7x
Thu, 13 Feb 2025US$6.5tUS$1.6tUS$218.1b19.1x29.9x4.1x
Sat, 11 Jan 2025US$6.2tUS$1.6tUS$189.8b18.7x32.4x3.9x
Mon, 09 Dec 2024US$6.1tUS$1.6tUS$189.5b18.7x32.4x3.9x
Wed, 06 Nov 2024US$5.6tUS$1.6tUS$188.7b17.9x29.8x3.6x
Fri, 04 Oct 2024US$5.6tUS$1.5tUS$188.3b18.3x30x3.7x
Sun, 01 Sep 2024US$5.4tUS$1.6tUS$189.1b18.8x28.4x3.5x
Tue, 30 Jul 2024US$5.2tUS$1.5tUS$197.1b20.5x26.3x3.4x
Thu, 27 Jun 2024US$5.5tUS$1.5tUS$191.0b17.7x29x3.6x
Sat, 25 May 2024US$5.2tUS$1.5tUS$191.4b17.6x27.3x3.4x
Mon, 22 Apr 2024US$5.0tUS$1.5tUS$177.3b17.6x28x3.3x
Wed, 20 Mar 2024US$5.0tUS$1.5tUS$175.9b18.2x28.3x3.3x
Fri, 16 Feb 2024US$4.9tUS$1.5tUS$172.8b17.3x28.5x3.3x
Sun, 14 Jan 2024US$4.7tUS$1.5tUS$128.1b15.3x36.7x3.1x
Tue, 12 Dec 2023US$4.4tUS$1.5tUS$128.1b16.5x34.7x2.9x
Thu, 09 Nov 2023US$4.3tUS$1.5tUS$122.2b12.8x35.3x2.8x
Sat, 07 Oct 2023US$4.3tUS$1.5tUS$104.7b13.9x41.4x2.9x
Mon, 04 Sep 2023US$4.3tUS$1.5tUS$104.5b14.5x41.4x2.9x
Wed, 02 Aug 2023US$4.4tUS$1.5tUS$110.7b15x39.7x2.9x
Price to Earnings Ratio

39.7x


Total Market Cap: US$4.4tTotal Earnings: US$110.7bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 29.6x202420252026
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 23.5x which is lower than its 3-year average PE of 29.6x.
  • The 3-year average PS ratio of 3.9x is lower than the industry's current PS ratio of 5.0x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 51% per year over the last three years.
  • Revenues for these companies have grown 5.7% 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-1.05%
Telecom-6.27%
Entertainment-1.12%
Media-4.41%
Telecom Services and Carriers-4.60%
Wireless Telecom-5.83%
Interactive Media and Services-7.74%
Industry PE
  • Investors are most optimistic about the Telecom Services and Carriers industry which is trading above its 3-year average PE ratio of 1.3x.
    • Analysts are expecting annual earnings growth of 48.7%, which is higher than its past year's earnings decline of 14.8% 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 15% per year.
  • In contrast, the Interactive Media and Services industry is expected to see its earnings grow by 4.8% 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
T AT&TUS$24.1310.6%
+US$13.8b		-13.8%PE7.7x
VZ Verizon CommunicationsUS$46.386.4%
+US$10.7b		7.7%PE11.9x
NFLX NetflixUS$70.091.7%
+US$4.7b		-40.6%PE21.4x
SPOT Spotify TechnologyUS$482.660.9%
+US$929.4m		-30.4%PE32.2x
AMC AMC Entertainment HoldingsUS$2.2717.0%
+US$294.6m		-30.2%PS0.4x

Latest News

WBD
US$25.77
Warner Bros. Discovery
7D
-4.1%
1Y
91.0%
DIS
US$94.85
Walt Disney
7D
-2.9%
1Y
-21.9%
GOOGL
US$319.74
Alphabet
7D
-7.8%
1Y
65.5%
TMUS
US$180.09
T-Mobile US
7D
-6.4%
1Y
-26.1%
VZ
US$46.38
Verizon Communications
7D
6.4%
1Y
7.7%
SPOT
US$482.66
Spotify Technology
7D
0.9%
1Y
-30.4%
META
US$595.19
Meta Platforms
7D
-7.9%
1Y
-16.5%
IMAX
US$43.38
IMAX
7D
10.5%
1Y
61.6%
Narrative Update • Jul 24

IMAX: Filmed For Large Format Slate And Potential Sale Will Support Upside

Analysts have raised the updated fair value estimate for IMAX from $55.99 to $59.72, citing higher Street price targets supported by a Q2 earnings beat, strong performance from "The Odyssey," increasing demand for filmed-for-IMAX content, and ongoing global system installations. Analyst Commentary Bullish analysts covering IMAX are largely framing the recent Q2 earnings beat and the success of "The Odyssey" as key supports for higher valuation ranges, with a series of price target increases reflecting confidence in both execution and growth initiatives.
AMC
US$2.27
AMC Entertainment Holdings
7D
17.0%
1Y
-30.2%
SPCX
US$115.07
Space Exploration Technologies
7D
-7.2%
1Y
n/a
CMCSA
US$22.30
Comcast
7D
-6.3%
1Y
-33.8%
NFLX
US$70.09
Netflix
7D
1.7%
1Y
-40.6%
Narrative Update • Jul 23

NFLX: Ads And Live Content Expansion Will Support Future Earnings Power

Analysts have trimmed their average Netflix price target, with the modelled fair value estimate moving about $12 lower to roughly $127. This reflects more cautious revenue growth assumptions and a reduced future P/E multiple, even as overall profitability expectations remain largely unchanged.
T
US$24.13
AT&T
7D
10.6%
1Y
-13.8%
JOYY
US$73.95
JOYY
7D
5.5%
1Y
44.8%
RBLX
US$47.55
Roblox
7D
-8.0%
1Y
-60.0%
Seeking Alpha • Jul 22

Roblox: AI Could Turn A Great Flywheel Into A Dominant One

Summary Roblox is positioned as an AI-native entertainment platform, leveraging AI across its ecosystem to drive growth and operational leverage. Q1 results showed 39% revenue growth to $1.44B, 43% bookings growth, and 71% adjusted EBITDA growth, underscoring accelerating scale and engagement. AI-driven productivity, creator empowerment, and improved user discovery are expected to yield 5-8% annual growth above baseline and significant long-term free cash flow. I rate RBLX a strong buy, targeting $109/share in three years, supported by robust growth, low debt, and peer-relative valuation. Read the full article on Seeking Alpha
CNK
US$32.71
Cinemark Holdings
7D
7.5%
1Y
12.6%