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U.S. Telecom Sector Analysis
UpdatedMar 11, 2025
DataAggregated Company Financials
Companies477
- 7D-4.4%
- 3M-5.5%
- 1Y22.1%
- YTD-4.0%
Over the last 7 days, the Telecom industry has dropped 4.4%, driven by Meta Platforms declining 8.7%. In contrast, Verizon Communications has gained 6.0%. This takes the industry's 12 month performance to a gain of 22%. Earnings are forecast to grow by 14% annually.
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 |
|---|---|---|---|---|---|---|
| Tue, 11 Mar 2025 | US$6.1t | US$1.6t | US$228.0b | 16x | 26.6x | 3.8x |
| Thu, 06 Feb 2025 | US$6.7t | US$1.6t | US$216.9b | 19x | 30.8x | 4.2x |
| Sat, 04 Jan 2025 | US$6.1t | US$1.6t | US$189.8b | 18.8x | 32x | 3.9x |
| Mon, 02 Dec 2024 | US$5.9t | US$1.6t | US$189.7b | 20.2x | 31x | 3.7x |
| Wed, 30 Oct 2024 | US$5.6t | US$1.5t | US$180.7b | 18.3x | 31.2x | 3.7x |
| Fri, 27 Sep 2024 | US$5.5t | US$1.5t | US$188.2b | 17.8x | 29.4x | 3.6x |
| Sun, 25 Aug 2024 | US$5.4t | US$1.6t | US$189.2b | 18.6x | 28.5x | 3.5x |
| Tue, 23 Jul 2024 | US$5.4t | US$1.5t | US$191.7b | 20.1x | 28x | 3.5x |
| Thu, 20 Jun 2024 | US$5.4t | US$1.5t | US$191.0b | 16.4x | 28.2x | 3.5x |
| Sat, 18 May 2024 | US$5.3t | US$1.5t | US$191.8b | 18.4x | 27.6x | 3.5x |
| Mon, 15 Apr 2024 | US$5.1t | US$1.5t | US$176.0b | 18.4x | 29.1x | 3.4x |
| Wed, 13 Mar 2024 | US$4.8t | US$1.5t | US$173.8b | 17.3x | 27.9x | 3.2x |
| Fri, 09 Feb 2024 | US$4.8t | US$1.5t | US$171.9b | 14.4x | 28.2x | 3.3x |
| Sun, 07 Jan 2024 | US$4.6t | US$1.5t | US$128.1b | 15.4x | 35.7x | 3x |
| Tue, 05 Dec 2023 | US$4.4t | US$1.5t | US$128.1b | 16.3x | 34.5x | 2.9x |
| Thu, 02 Nov 2023 | US$4.1t | US$1.5t | US$123.7b | 12.6x | 33.2x | 2.7x |
| Sat, 30 Sep 2023 | US$4.2t | US$1.5t | US$104.7b | 14.1x | 40.4x | 2.8x |
| Mon, 28 Aug 2023 | US$4.2t | US$1.5t | US$104.0b | 13.6x | 40.1x | 2.8x |
| Wed, 26 Jul 2023 | US$4.2t | US$1.5t | US$104.0b | 15.3x | 40.2x | 2.8x |
| Fri, 23 Jun 2023 | US$4.1t | US$1.5t | US$107.1b | 17.1x | 38.1x | 2.7x |
| Sun, 21 May 2023 | US$4.0t | US$1.5t | US$106.1b | 17.5x | 37.6x | 2.7x |
| Tue, 18 Apr 2023 | US$3.8t | US$1.5t | US$115.8b | 16.9x | 32.9x | 2.6x |
| Thu, 16 Mar 2023 | US$3.5t | US$1.5t | US$114.8b | 16.9x | 30.7x | 2.4x |
| Sat, 11 Feb 2023 | US$3.6t | US$1.5t | US$125.1b | 19.1x | 28.5x | 2.4x |
| Mon, 09 Jan 2023 | US$3.3t | US$1.5t | US$166.4b | 16.9x | 19.8x | 2.2x |
| Wed, 07 Dec 2022 | US$3.3t | US$1.5t | US$166.6b | 17.3x | 19.9x | 2.2x |
| Fri, 04 Nov 2022 | US$3.1t | US$1.5t | US$170.0b | 15.6x | 18x | 2.1x |
| Sun, 02 Oct 2022 | US$3.2t | US$1.5t | US$187.6b | 14x | 17.2x | 2.2x |
| Tue, 30 Aug 2022 | US$3.7t | US$1.5t | US$186.9b | 16.3x | 19.9x | 2.5x |
| Thu, 28 Jul 2022 | US$3.8t | US$1.5t | US$209.7b | 17.1x | 18.2x | 2.6x |
| Sat, 25 Jun 2022 | US$4.4t | US$1.5t | US$213.9b | 17.7x | 20.5x | 3x |
| Mon, 23 May 2022 | US$3.9t | US$1.5t | US$218.3b | 17.4x | 17.7x | 2.6x |
| Wed, 20 Apr 2022 | US$4.6t | US$1.4t | US$224.6b | 22.1x | 20.4x | 3.2x |
| Fri, 18 Mar 2022 | US$4.6t | US$1.4t | US$225.9b | 17.6x | 20.3x | 3.2x |
Price to Earnings Ratio
20.3x
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 28.7x.
- The 3-year average PS ratio of 3.0x is lower than the industry's current PS ratio of 3.8x.
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 3.4% 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 | -4.57% | |
| Telecom | -4.44% | |
| Telecom Services and Carriers | 2.10% | |
| Media | -0.79% | |
| Wireless Telecom | -2.34% | |
| Interactive Media and Services | -4.41% | |
| Entertainment | -8.73% | |
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 25.4%, which is higher than its past year's earnings growth of 15.3% 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 0.18x.
Forecasted Growth
- Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 25% over the next 5 years.
- This is better than its past earnings growth rate of 15% per year.
- In contrast, the Media industry is expected to see its earnings grow by 10% 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 | |
|---|---|---|---|---|---|
| VZ Verizon Communications | US$46.49 | 6.0% +US$11.0b | 15.8% | PE11.2x | |
| EA Electronic Arts | US$140.43 | 8.7% +US$2.9b | 2.7% | PE34.9x | |
| BIDU Baidu | US$92.59 | 9.8% +US$2.9b | -8.6% | PE9.9x | |
| SE Sea | US$127.32 | 3.1% +US$2.2b | 118.0% | PE164.6x | |
| LZMH LZ Technology Holdings | US$15.66 | 171.4% +US$1.5b | n/a | PS20.9x |
