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U.S. Telecom Sector Analysis

UpdatedJan 30, 2026
DataAggregated Company Financials
Companies502
  • 7D3.8%
  • 3M9.6%
  • 1Y27.8%
  • YTD5.2%

In the last week, the Telecom industry is up 3.0%, with Meta Platforms up 14%. In the same time, Reddit was down 11%. This takes the industry's 12 month performance to a gain of 25%. Looking forward, earnings are forecast to grow by 13% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Tue, 16 May 2023US$3.9tUS$1.5tUS$105.2b17.1x37.1x2.6x
Thu, 13 Apr 2023US$3.8tUS$1.5tUS$115.9b16.5x32.5x2.5x
Sat, 11 Mar 2023US$3.4tUS$1.5tUS$115.0b17.8x29.5x2.3x
Mon, 06 Feb 2023US$3.8tUS$1.5tUS$129.2b19.7x29.4x2.6x
Price to Earnings Ratio

29.4x


Total Market Cap: US$3.8tTotal Earnings: US$129.2bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 30.5x202420252026
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 30.5x.
  • The 3-year average PS ratio of 3.5x is lower than the industry's current PS ratio of 4.8x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 30% per year over the last three years.
  • Revenues for these companies have grown 3.8% 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 Market0.25%
Telecom3.82%
Interactive Media and Services5.13%
Telecom Services and Carriers2.77%
Wireless Telecom1.34%
Entertainment-0.21%
Media-4.52%
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 17.1%, which is higher than its past year's earnings growth of 0.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Media industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 7.7% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
META Meta PlatformsUS$738.3114.0%
+US$228.6b		7.5%PE30.8x
GOOGL AlphabetUS$338.252.3%
+US$93.0b		68.4%PE32.9x
T AT&TUS$25.136.6%
+US$9.7b		4.6%PE8.1x
TMUS T-Mobile USUS$189.282.1%
+US$4.4b		-19.2%PE17.8x
LYV Live Nation EntertainmentUS$147.787.0%
+US$2.2b		2.6%PE106.5x

Latest News

META
US$738.31
Meta Platforms
7D
14.0%
1Y
7.5%
T
US$25.13
AT&T
7D
6.6%
1Y
4.6%
RDDT
US$190.05
Reddit
7D
-11.4%
1Y
-4.5%
DIS
US$111.58
Walt Disney
7D
-1.4%
1Y
-1.6%
LYV
US$147.78
Live Nation Entertainment
7D
7.0%
1Y
2.6%

LYV: Strong Demand And Deferred Revenue Will Support Future Upside

Analysts have trimmed their price expectations for Live Nation Entertainment, with the consensus fair value estimate easing by about $1 to $169.48 as they weigh a softer North American growth outlook, a longer regulatory overhang, slightly lower revenue growth and margin assumptions, and a higher future P/E multiple, despite still solid demand indicators highlighted in recent research. Analyst Commentary Recent Street research highlights a mix of optimism and caution around Live Nation Entertainment, with views split on how quickly the company can translate strong demand indicators into clearer earnings visibility and support current valuation levels.
TTD
US$31.25
Trade Desk
7D
-15.1%
1Y
-73.7%
GOOGL
US$338.25
Alphabet
7D
2.3%
1Y
68.4%
VZ
US$39.81
Verizon Communications
7D
0.8%
1Y
0.9%

VZ: New CEO And Cost Cuts Will Support Cash Flow Restructuring

Narrative Update: Verizon Communications Analyst Price Target Shift The analyst price target for Verizon Communications has been trimmed by about US$0.48 per share, reflecting recent price target reductions from several firms and slightly more cautious assumptions around the discount rate, revenue growth, profit margin, and future P/E. Analysts link these changes to execution risk during restructuring and competitive holiday promotions.
WBD
US$27.60
Warner Bros. Discovery
7D
-2.7%
1Y
159.9%

WBD: Future Bidding Outcomes And Deal Structure Will Drive Share Upside

Analysts lifted their fair value estimate for Warner Bros. Discovery to $35.00 from $21.27, citing updated assumptions for revenue growth, profit margins, a lower discount rate and a higher future P/E multiple, along with recent Street research highlighting potential M&A interest and revised price targets in the broader streaming group.
SATS
US$113.46
EchoStar
7D
-11.3%
1Y
313.0%

SATS: EchoStar Spectrum Deployment And New Capital Division Will Drive Upside

Analysts have lifted their fair value estimate for EchoStar from US$102.00 to US$158.00, pointing to a lower discount rate and a higher assumed future P/E multiple as key drivers of the target change, even though they now factor in a modest revenue decline and essentially stable profit margins. What's in the News AT&T has deployed mid band spectrum acquired from EchoStar to nearly 23,000 cell sites in a few weeks, aiming to lift 5G download speeds by up to 80% for mobility users and 55% for AT&T Internet Air customers across more than 5,300 cities in 48 states (client announcement).
ASTS
US$122.09
AST SpaceMobile
7D
4.9%
1Y
570.5%

AST SpaceMobile, Inc. (NASDAQ:ASTS) Analysts Are More Bearish Than They Used To Be

Jan 22
AST SpaceMobile, Inc. (NASDAQ:ASTS) Analysts Are More Bearish Than They Used To Be
BIDU
US$157.51
Baidu
7D
-3.1%
1Y
66.2%
NFLX
US$83.16
Netflix
7D
-0.5%
1Y
-14.6%
TME
US$17.17
Tencent Music Entertainment Group
7D
7.0%
1Y
39.9%

TME: Future Margin Debate Will Shape Upside After Recent Selloff

Analysts have trimmed their fair value estimate for Tencent Music Entertainment Group from US$23.15 to about US$21.77, reflecting lower long term earnings assumptions and a more cautious view on margin trends, even as they continue to highlight resilient user monetization and limited impact so far from Bytedance's Soda Music. Analyst Commentary Recent research updates around Tencent Music show a split in views, but there is a clear pocket of caution you should be aware of.
PINS
US$22.35
Pinterest
7D
-12.9%
1Y
-32.1%

PINS: Ad Demand And AI Improvements Will Drive Future Rerating Potential

Our Pinterest fair value estimate has been revised down to about $46.84 from $50.00 as analysts adjust their price targets in the low to mid $30s, citing mixed signals around tariffs and macro sensitivity, alongside steady ad demand and potential upside from AI and product improvements. Analyst Commentary Recent Street research around Pinterest reflects a mix of recalibrated targets and generally constructive views on execution, especially in ads and product.
TMUS
US$189.28
T-Mobile US
7D
2.1%
1Y
-19.2%

TMUS: 5G Coverage And Cash Returns Will Support Future Outperformance

The analyst fair value estimate for T-Mobile US has shifted from US$277.08 to US$268.22 as analysts update price targets across the sector, balancing stronger revenue and margin assumptions with a lower future P/E and mixed views on competitive intensity and cash flow growth. Analyst Commentary Recent research on T-Mobile US reflects a mix of optimism around execution and cash generation, alongside more cautious views on valuation, industry competition, and certain cash flow exposures.