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U.S. Telecom Sector Analysis

UpdatedAug 13, 2026
DataAggregated Company Financials
Companies467
  • 7D1.5%
  • 3M-10.8%
  • 1Y9.8%
  • YTD-3.7%

The Telecom industry is up 1.5% in the last week, with Space Exploration Technologies up 27%. Meanwhile, Alphabet actually underperformed within the industry, shrinking 5.2% in the last week. In the last 12 months, the industry was up 9.8%. As for the next few years, earnings are expected to grow by 18% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 13 Aug 2026US$9.7tUS$1.8tUS$382.8b18.8x25.5x5.4x
Sat, 11 Jul 2026US$10.0tUS$1.7tUS$300.8b19x33.2x5.7x
Mon, 08 Jun 2026US$8.0tUS$1.7tUS$308.7b17.3x26x4.7x
Wed, 06 May 2026US$8.4tUS$1.7tUS$311.1b18.1x26.9x4.9x
Fri, 03 Apr 2026US$7.2tUS$1.7tUS$272.6b15.5x26.6x4.3x
Sun, 01 Mar 2026US$7.7tUS$1.7tUS$274.8b19.7x28x4.6x
Tue, 27 Jan 2026US$7.9tUS$1.6tUS$283.0b16.8x28x4.8x
Thu, 25 Dec 2025US$7.8tUS$1.6tUS$280.9b16.2x27.9x4.8x
Sat, 22 Nov 2025US$7.3tUS$1.6tUS$283.1b16.6x25.6x4.4x
Mon, 20 Oct 2025US$7.4tUS$1.6tUS$286.1b17.6x25.7x4.6x
Wed, 17 Sep 2025US$7.6tUS$1.6tUS$285.9b20.1x26.5x4.7x
Fri, 15 Aug 2025US$7.0tUS$1.6tUS$286.6b18.9x24.6x4.3x
Sun, 13 Jul 2025US$6.5tUS$1.6tUS$250.2b17.8x26.2x4.1x
Tue, 10 Jun 2025US$6.5tUS$1.6tUS$250.0b17.2x25.8x4x
Thu, 08 May 2025US$5.9tUS$1.6tUS$246.9b17x23.8x3.7x
Sat, 05 Apr 2025US$5.5tUS$1.6tUS$227.3b15.2x24x3.5x
Mon, 03 Mar 2025US$6.2tUS$1.6tUS$227.8b16.8x27.2x3.9x
Wed, 29 Jan 2025US$6.4tUS$1.6tUS$200.0b17.2x31.8x4.1x
Fri, 27 Dec 2024US$6.2tUS$1.6tUS$189.6b18.6x32.9x4x
Sun, 24 Nov 2024US$5.8tUS$1.6tUS$189.7b20.1x30.4x3.7x
Tue, 22 Oct 2024US$5.7tUS$1.6tUS$189.2b17.8x29.9x3.6x
Thu, 19 Sep 2024US$5.4tUS$1.5tUS$188.2b18.8x28.6x3.5x
Sat, 17 Aug 2024US$5.3tUS$1.6tUS$189.1b19.3x28.2x3.4x
Mon, 15 Jul 2024US$5.5tUS$1.5tUS$191.2b17.3x28.9x3.6x
Wed, 12 Jun 2024US$5.4tUS$1.5tUS$191.0b16.6x28.2x3.5x
Fri, 10 May 2024US$5.2tUS$1.5tUS$193.5b18.3x26.8x3.4x
Sun, 07 Apr 2024US$5.2tUS$1.5tUS$176.0b19.4x29.3x3.4x
Tue, 05 Mar 2024US$4.8tUS$1.5tUS$173.8b17.7x27.7x3.2x
Thu, 01 Feb 2024US$5.0tUS$1.5tUS$152.7b15.3x32.6x3.2x
Sat, 30 Dec 2023US$4.7tUS$1.5tUS$128.0b15.7x36.4x3.1x
Mon, 27 Nov 2023US$4.5tUS$1.5tUS$128.3b16x35.2x3x
Wed, 25 Oct 2023US$4.3tUS$1.5tUS$102.5b14x42x2.9x
Fri, 22 Sep 2023US$4.2tUS$1.5tUS$104.7b14.4x40.1x2.8x
Sun, 20 Aug 2023US$4.1tUS$1.5tUS$102.8b14.5x40.3x2.8x
Price to Earnings Ratio

40.3x


Total Market Cap: US$4.1tTotal Earnings: US$102.8bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 29.4x202420252026
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 25.5x which is lower than its 3-year average PE of 29.4x.
  • The 3-year average PS ratio of 3.9x is lower than the industry's current PS ratio of 5.4x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 55% per year over the last three years.
  • Revenues for these companies have grown 6.1% 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 Market1.02%
Telecom1.53%
Telecom Services and Carriers21.22%
Wireless Telecom2.06%
Entertainment1.41%
Interactive Media and Services-4.27%
Media-11.20%
Industry PE
  • Investors are most optimistic about the Media industry which is trading above its 3-year average PE ratio of 11.1x.
    • Analysts are expecting annual earnings growth of 20.4%, which is higher than its past year's earnings growth of 11.6% per year.
  • Investors are most pessimistic about the Wireless Telecom industry, which is trading below its 3-year average of 22.8x.
Forecasted Growth
  • Analysts are most optimistic on the Telecom Services and Carriers industry, expecting annual earnings growth of 52% over the next 5 years.
  • This is better than its past earnings decline of 18% per year.
  • In contrast, the Interactive Media and Services industry is expected to see its earnings grow by 3.8% 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
SPCX Space Exploration TechnologiesUS$146.1527.2%
+US$411.7b		n/aPS83.6x
T AT&TUS$24.255.2%
+US$8.2b		-14.6%PE7.7x
WBD Warner Bros. DiscoveryUS$27.656.5%
+US$4.3b		129.5%PS1.9x
TMUS T-Mobile USUS$177.132.1%
+US$3.9b		-29.4%PE18x
CMCSA ComcastUS$25.472.9%
+US$2.6b		-22.7%PE8.1x

Latest News

TMUS
US$177.13
T-Mobile US
7D
2.1%
1Y
-29.4%
GOOGL
US$343.54
Alphabet
7D
-5.2%
1Y
70.1%
VZ
US$46.98
Verizon Communications
7D
1.1%
1Y
7.5%
DIS
US$103.22
Walt Disney
7D
1.4%
1Y
-11.5%
SPCX
US$146.15
Space Exploration Technologies
7D
27.2%
1Y
n/a
TME
US$8.46
Tencent Music Entertainment Group
7D
-11.2%
1Y
-67.0%
Seeking Alpha • 15h

Tencent Music: Organic Deceleration And Competition Weigh On Outlook (Rating Downgrade)

Summary Tencent Music (TME) is downgraded to Hold from Buy due to intensifying competition, especially from ByteDance's Soda Music. Organic revenue growth decelerated, with management acknowledging user churn among casual users and rising operating expenses to retain users. Social entertainment revenue declined 17% y/y, weighing on PnL despite 11% y/y growth in music services; macro headwinds persist. Valuation is now seen as fair, with risk-reward balanced until TME demonstrates sustainable user retention and cost synergies post-Ximalaya acquisition. Read the full article on Seeking Alpha
APP
US$303.76
AppLovin
7D
-27.3%
1Y
-32.0%
META
US$578.85
Meta Platforms
7D
-1.7%
1Y
-25.8%
FWON.K
US$103.61
Formula One Group
7D
7.9%
1Y
3.6%
SIRI
US$28.44
Sirius XM Holdings
7D
-7.4%
1Y
26.9%
TTD
US$13.49
Trade Desk
7D
-28.9%
1Y
-75.2%
Narrative Update • Aug 11

TTD: Agency Audits And AI Competition Will Shape Future Upside

Analysts have cut their price targets on Trade Desk sharply, with the updated fair value estimate moving from about $36.87 to $19.71. This reflects lower projected revenue growth, slimmer profit margins, a higher discount rate, and reduced future P/E expectations following weaker Q2 results and rising competitive pressures.
CMCSA
US$25.47
Comcast
7D
2.9%
1Y
-22.7%
WMG
US$24.79
Warner Music Group
7D
-4.7%
1Y
-22.7%
Narrative Update • Aug 11

WMG: Streaming Expansion And Content Partnerships Will Support Long Term Economics

Analysts have trimmed their price target on Warner Music Group by $2 to $36. They cited updated assumptions for fair value, discount rate, revenue growth, profit margin and future P/E, and pointed to recent Q3 results as support for their view despite earlier exogenous pressures on sentiment.
WBD
US$27.65
Warner Bros. Discovery
7D
6.5%
1Y
129.5%
T
US$24.25
AT&T
7D
5.2%
1Y
-14.6%
BIDU
US$104.84
Baidu
7D
-5.6%
1Y
15.1%