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

U.S. Telecom Sector Analysis

UpdatedJun 11, 2026
DataAggregated Company Financials
Companies479
  • 7D-2.1%
  • 3M4.4%
  • 1Y24.6%
  • YTD1.0%

Over the last 7 days, the Telecom industry has dropped 1.1%, driven by a pullback from Meta Platforms of 8.3%. This takes the industry's 12 month performance to a gain of 25%. As for the next few years, earnings are expected to grow by 14% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 11 Jun 2026US$9.7tUS$1.7tUS$299.4b17.9x32.6x5.6x
Sat, 09 May 2026US$8.5tUS$1.7tUS$309.1b17.7x27.6x5x
Mon, 06 Apr 2026US$7.2tUS$1.7tUS$272.6b15.5x26.6x4.3x
Wed, 04 Mar 2026US$7.7tUS$1.7tUS$273.1b17.7x28.1x4.6x
Fri, 30 Jan 2026US$7.9tUS$1.7tUS$282.1b16.4x28.2x4.8x
Sun, 28 Dec 2025US$7.8tUS$1.6tUS$282.2b16.3x27.7x4.7x
Tue, 25 Nov 2025US$7.4tUS$1.6tUS$283.1b16.7x26.1x4.5x
Thu, 23 Oct 2025US$7.4tUS$1.6tUS$286.2b18.4x25.9x4.6x
Sat, 20 Sep 2025US$7.6tUS$1.6tUS$286.0b20.4x26.6x4.7x
Mon, 18 Aug 2025US$7.1tUS$1.6tUS$286.5b20.7x24.8x4.3x
Wed, 16 Jul 2025US$6.6tUS$1.6tUS$249.7b17.3x26.5x4.1x
Fri, 13 Jun 2025US$6.5tUS$1.6tUS$250.1b17.3x25.8x4x
Sun, 11 May 2025US$5.8tUS$1.6tUS$247.7b17.1x23.3x3.6x
Tue, 08 Apr 2025US$5.2tUS$1.6tUS$227.3b15x22.8x3.3x
Thu, 06 Mar 2025US$6.1tUS$1.6tUS$228.2b16.5x26.7x3.8x
Sat, 01 Feb 2025US$6.5tUS$1.6tUS$209.0b17.2x31.3x4.2x
Mon, 30 Dec 2024US$6.2tUS$1.6tUS$189.8b18.5x32.4x3.9x
Wed, 27 Nov 2024US$5.8tUS$1.6tUS$189.8b20.3x30.5x3.7x
Fri, 25 Oct 2024US$5.5tUS$1.5tUS$180.7b18.3x30.7x3.6x
Sun, 22 Sep 2024US$5.5tUS$1.5tUS$188.2b18.1x29.2x3.6x
Tue, 20 Aug 2024US$5.3tUS$1.6tUS$189.2b19.1x28.2x3.4x
Thu, 18 Jul 2024US$5.5tUS$1.5tUS$191.1b18.9x28.9x3.6x
Sat, 15 Jun 2024US$5.4tUS$1.5tUS$191.0b16.4x28.2x3.5x
Mon, 13 May 2024US$5.2tUS$1.5tUS$193.7b18.5x26.8x3.4x
Wed, 10 Apr 2024US$5.2tUS$1.5tUS$176.0b19.1x29.3x3.4x
Fri, 08 Mar 2024US$4.9tUS$1.5tUS$173.7b16.9x27.9x3.2x
Sun, 04 Feb 2024US$5.0tUS$1.5tUS$161.9b14.8x31x3.3x
Tue, 02 Jan 2024US$4.6tUS$1.5tUS$128.1b15.7x36.2x3x
Thu, 30 Nov 2023US$4.5tUS$1.5tUS$128.3b16x35.2x3x
Sat, 28 Oct 2023US$4.0tUS$1.5tUS$125.9b12.5x32x2.7x
Mon, 25 Sep 2023US$4.2tUS$1.5tUS$104.7b14.1x40.1x2.8x
Wed, 23 Aug 2023US$4.2tUS$1.5tUS$103.4b14x40.4x2.8x
Fri, 21 Jul 2023US$4.2tUS$1.5tUS$107.1b15.6x39.1x2.8x
Sun, 18 Jun 2023US$4.2tUS$1.5tUS$107.1b17.4x38.7x2.8x
Price to Earnings Ratio

38.7x


Total Market Cap: US$4.2tTotal Earnings: US$107.1bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 29.9x202420252026
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 29.9x.
  • The 3-year average PS ratio of 3.8x is lower than the industry's current PS ratio of 5.6x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 41% per year over the last three years.
  • Revenues for these companies have grown 5.4% 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-4.05%
Telecom-2.13%
Wireless Telecom2.10%
Media0.32%
Entertainment0.22%
Telecom Services and Carriers-1.65%
Interactive Media and Services-2.77%
Industry PE
  • Investors are most optimistic about the Telecom Services and Carriers industry which is trading above its 3-year average PE ratio of 0.098x.
    • Analysts are expecting annual earnings growth of 12.1%, which is higher than its past year's earnings decline of 6.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Media industry, expecting annual earnings growth of 35% over the next 5 years.
  • This is better than its past earnings growth rate of 1.1% per year.
  • In contrast, the Wireless Telecom industry is expected to see its earnings grow by 11% 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
TMUS T-Mobile USUS$185.552.3%
+US$4.4b		-19.7%PE19x
SPOT Spotify TechnologyUS$503.103.2%
+US$3.2b		-29.1%PE33.1x
NFLX NetflixUS$82.000.6%
+US$2.0b		-32.8%PE25.8x
CMCSA ComcastUS$23.971.9%
+US$1.6b		-31.9%PE4.6x
FOXA FoxUS$68.005.8%
+US$1.6b		24.4%PE16.7x

Latest News

VZ
US$46.95
Verizon Communications
7D
0.6%
1Y
7.3%
Seeking Alpha • 3h

Verizon: A Good Defensive Play In Times Of Market Exuberance

Summary Verizon's stock is showing some signs of resiliency in recent months as other telecom carriers experience downward pressure. In spite of the stock's poor performance during the last bear market in equities, VZ remains a solid defensive play. However, there are some caveats when it comes to future profitability improvements, and investors should be mindful of that. The dividend offers yet another reason to hold VZ, as the 6% yield does not appear to be at any immediate risk. Read the full article on Seeking Alpha
LUMN
US$8.26
Lumen Technologies
7D
-17.2%
1Y
99.0%
Seeking Alpha • 7h

Lumen Technologies: Limited AI Detected

Summary Lumen Technologies has surged on AI hype, but core revenues and EBITDA continue to decline sharply. Recent AI hyperscaler deals, including with Anthropic, add minimal recurring revenue—$46 million quarterly versus a shrinking multi-billion dollar base. The stock trades at 6.5x EV/EBITDA, a stretched valuation for a declining telecom, with $11.4 billion net debt and no clear growth turnaround. I remain Bearish; investors should exit LUMN on AI-driven rallies until management demonstrates credible, material growth. Read the full article on Seeking Alpha
SATS
US$115.24
EchoStar
7D
-4.7%
1Y
567.3%
Seeking Alpha • 7h

EchoStar: Spectrum Is Real, But I Wouldn't Chase The Rally

Summary EchoStar Corporation is primarily a play on spectrum monetization and balance sheet deleveraging, not operational growth. Recent AT&T and SpaceX asset sales provide liquidity and buy time but don't resolve core structural declines in Pay-TV and broadband. Despite improved operating income, revenue, and subscriber trends remain negative, and SATS stock trades at a premium on traditional multiples. I maintain a Hold rating, as the investment case hinges on successful deal execution with little margin of safety after a significant price run-up. Read the full article on Seeking Alpha
ASTS
US$87.32
AST SpaceMobile
7D
-18.9%
1Y
139.4%
META
US$570.98
Meta Platforms
7D
-8.3%
1Y
-17.7%
CHTR
US$137.79
Charter Communications
7D
6.8%
1Y
-65.5%
FOXA
US$68.00
Fox
7D
5.8%
1Y
24.4%
SPOT
US$503.10
Spotify Technology
7D
3.2%
1Y
-29.1%
WBD
US$26.23
Warner Bros. Discovery
7D
-2.9%
1Y
149.6%
RBLX
US$41.50
Roblox
7D
-5.0%
1Y
-56.8%
TMUS
US$185.55
T-Mobile US
7D
2.3%
1Y
-19.7%
Narrative Update • Jun 08

TMUS: Q1 Execution And Digital Shift Will Support 2026 Rerating

Analysts have adjusted T-Mobile US's consensus price target modestly, reflecting a mix of reduced targets from several large firms, including cuts of $15, $25, $29 and $50, partly offset by smaller increases such as a $9 and a $5 move higher, as they factor in updated views on revenue growth, Q1 results and relative valuation. Analyst Commentary Bullish Takeaways Bullish analysts point to Q1 results as an important support for their outlook, seeing execution in recent quarters as a key input into their updated views on the stock.
NFLX
US$82.00
Netflix
7D
0.6%
1Y
-32.8%
Narrative Update • Jun 06

NFLX: Advertising Expansion Will Support Engagement And Earnings Power After Warner Bid Exit

Analysts have trimmed the blended fair value estimate for Netflix by about $4 to $138.56 as they moderate assumptions for revenue growth and profit margins, while still highlighting the potential of the expanding ads business and price increases to support long term earnings power. Analyst Commentary Bullish analysts are emphasizing Netflix's progress on advertising, pricing and product execution as key supports for the trimmed fair value estimate, even as some margin and growth assumptions are moderated.
CMCSA
US$23.97
Comcast
7D
1.9%
1Y
-31.9%
T
US$23.21
AT&T
7D
-1.4%
1Y
-18.1%
Narrative Update • Jun 05

T: Future Returns Will Reflect Satellite Coverage Push And Steady P/E Expectations

Analysts are maintaining their $25.00 price target for AT&T, pointing to updated assumptions around the discount rate, modest revenue growth, profit margin expectations, and future P/E, which together leave their overall valuation view unchanged. What's in the News AT&T, T-Mobile, and Verizon agreed in principle to form a joint venture that will pool spectrum and use satellite based direct to device technology to reduce U.S. mobile dead zones, particularly in rural and underserved areas, with AST SpaceMobile expected to play a key role in enabling the service.
BIDU
US$117.48
Baidu
7D
-11.5%
1Y
34.2%
LYV
US$167.50
Live Nation Entertainment
7D
2.0%
1Y
16.7%
Narrative Update • Jun 04

LYV: DOJ Settlement Resolution Will Support Future Ticketing And Venue Upside

Narrative Update: Live Nation Entertainment (LYV) Analysts have nudged their price target for Live Nation higher by about $1.60, citing recent research that points to stronger revenue and margin assumptions, support from higher Street targets at firms including JPMorgan and Guggenheim, and a generally constructive view of the potential impact from the DOJ settlement on the company and Ticketmaster. Analyst Commentary Recent research around Live Nation centers on the proposed DOJ settlement, pricing power in ticketing, and how potential structural changes could affect long term growth and margins.