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

U.S. Telecom Sector Analysis

UpdatedJul 06, 2026
DataAggregated Company Financials
Companies480
  • 7D5.3%
  • 3M7.9%
  • 1Y20.7%
  • YTD1.4%

In the last week, the Telecom industry is up 5.3%, with Alphabet up 3.6%. In the last 12 months, the industry was up 21%. Earnings are forecast to grow by 25% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 07 Jul 2026US$10.0tUS$1.7tUS$300.8b18.3x33.3x5.8x
Thu, 04 Jun 2026US$8.0tUS$1.7tUS$308.8b17x25.9x4.6x
Sat, 02 May 2026US$8.4tUS$1.7tUS$311.4b17.6x26.9x4.9x
Mon, 30 Mar 2026US$6.8tUS$1.7tUS$272.8b15x25x4.1x
Wed, 25 Feb 2026US$7.6tUS$1.7tUS$275.7b15.4x27.4x4.5x
Fri, 23 Jan 2026US$7.8tUS$1.7tUS$283.0b16.4x27.5x4.7x
Sun, 21 Dec 2025US$7.7tUS$1.6tUS$280.9b16.4x27.4x4.7x
Tue, 18 Nov 2025US$7.2tUS$1.6tUS$285.5b16.6x25.3x4.4x
Thu, 16 Oct 2025US$7.3tUS$1.6tUS$286.1b18x25.4x4.5x
Sat, 13 Sep 2025US$7.4tUS$1.6tUS$286.1b20.7x25.8x4.6x
Mon, 11 Aug 2025US$6.9tUS$1.6tUS$285.6b20.7x24.2x4.2x
Wed, 09 Jul 2025US$6.6tUS$1.6tUS$250.2b17.8x26.4x4.1x
Fri, 06 Jun 2025US$6.3tUS$1.6tUS$249.9b17.4x25.3x3.9x
Sun, 04 May 2025US$5.9tUS$1.6tUS$245.7b16.7x24x3.7x
Tue, 01 Apr 2025US$5.7tUS$1.6tUS$227.4b17.8x25x3.6x
Thu, 27 Feb 2025US$6.2tUS$1.6tUS$225.2b17.7x27.6x3.9x
Sat, 25 Jan 2025US$6.3tUS$1.6tUS$190.6b18.8x33.3x4x
Mon, 23 Dec 2024US$6.1tUS$1.6tUS$189.6b17.8x32.2x3.9x
Wed, 20 Nov 2024US$5.9tUS$1.6tUS$189.7b20x31x3.7x
Fri, 18 Oct 2024US$5.6tUS$1.5tUS$188.2b18.5x30x3.7x
Sun, 15 Sep 2024US$5.3tUS$1.5tUS$188.1b18.7x28.2x3.4x
Tue, 13 Aug 2024US$5.3tUS$1.5tUS$189.8b21x27.8x3.4x
Thu, 11 Jul 2024US$5.7tUS$1.5tUS$191.3b17.3x29.6x3.7x
Sat, 08 Jun 2024US$5.4tUS$1.5tUS$191.0b15.3x28.3x3.5x
Mon, 06 May 2024US$5.1tUS$1.5tUS$194.6b18.5x26.3x3.4x
Wed, 03 Apr 2024US$5.1tUS$1.5tUS$176.1b19x29x3.4x
Fri, 01 Mar 2024US$4.8tUS$1.5tUS$174.2b18.2x27.6x3.2x
Sun, 28 Jan 2024US$5.0tUS$1.5tUS$145.5b15.1x34.2x3.3x
Tue, 26 Dec 2023US$4.6tUS$1.5tUS$127.9b15.6x36.3x3x
Thu, 23 Nov 2023US$4.5tUS$1.5tUS$127.3b16.3x35.3x3x
Sat, 21 Oct 2023US$4.3tUS$1.5tUS$102.5b14.9x41.8x2.9x
Mon, 18 Sep 2023US$4.3tUS$1.5tUS$104.4b14.1x41.6x2.9x
Wed, 16 Aug 2023US$4.3tUS$1.5tUS$103.8b14.8x41x2.8x
Fri, 14 Jul 2023US$4.3tUS$1.5tUS$106.8b16.5x40.3x2.9x
Price to Earnings Ratio

40.3x


Total Market Cap: US$4.3tTotal Earnings: US$106.8bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 29.8x202420252026
Current Industry PE
  • Investors are optimistic on the American Communication Services industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 33.3x which is higher than its 3-year average PE of 29.8x.
  • The 3-year average PS ratio of 3.8x is lower than the industry's current PS ratio of 5.8x.
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 Market1.63%
Telecom5.25%
Interactive Media and Services6.54%
Media6.32%
Telecom Services and Carriers3.71%
Entertainment3.29%
Wireless Telecom-2.07%
Industry PE
  • Investors are most optimistic about the Telecom Services and Carriers industry which is trading above its 3-year average PE ratio of 0.85x.
    • Analysts are expecting annual earnings growth of 55.0%, which is higher than its past year's earnings decline of 9.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom Services and Carriers industry, expecting annual earnings growth of 55% over the next 5 years.
  • This is better than its past earnings decline of 9.7% 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
GOOGL AlphabetUS$366.463.6%
+US$156.3b		107.3%PE27.9x
META Meta PlatformsUS$600.296.7%
+US$95.7b		-16.4%PE21.6x
NFLX NetflixUS$76.023.0%
+US$9.4b		-41.1%PE23.9x
TMUS T-Mobile USUS$181.794.5%
+US$8.5b		-23.5%PE18.7x
RDDT RedditUS$200.8615.2%
+US$5.1b		31.0%PE54.7x

Latest News

RDDT
US$200.86
Reddit
7D
15.2%
1Y
31.0%
Seeking Alpha • 2h

Reddit: Primed To Go, As Tired Investors Give Up, Fundamentals Take Over

Summary Reddit is delivering ~45% y/y revenue growth and is on track for $1.1B in free cash flow this year. RDDT trades at less than 1x adjusted PEG and 31x forward free cash flow, offering an attractive risk-reward profile. AI disruption fears are overblown; sustained high growth and advertiser demand reinforce RDDT’s resilience and upside. I see this primed to move higher, contingent on maintaining 45%+ revenue growth and robust operating leverage. Read the full article on Seeking Alpha
META
US$600.29
Meta Platforms
7D
6.7%
1Y
-16.4%
Seeking Alpha • 6h

Meta Platforms: This Neocloud Pivot Could Be A Game Changer

Summary Meta Platforms remains fundamentally strong, with robust revenue growth and expanding operating income, yet shares have stagnated due to AI CapEx concerns. META is poised to overtake Google in digital ad revenue by 2026, while new monetization avenues like WhatsApp, Threads, and a potential cloud business diversify growth. Recent DCF analysis values META at $810.57 per share, well above current levels, supported by upward revenue revisions and strong margin assumptions. Risks persist from elevated CapEx, uncertain AI returns, regulatory pressures, and potential sector-wide sentiment shifts, but Q2 earnings offer a near-term catalyst. Read the full article on Seeking Alpha
T
US$20.58
AT&T
7D
-5.7%
1Y
-27.6%
Seeking Alpha • 11h

AT&T: SpaceX Anxiety Has Created A Strong Buy Setup

Summary AT&T is upgraded to 'Strong Buy' as market pessimism overshadows robust business fundamentals and undervalues the stock. T trades at 8.9x forward P/E with a 5.4% yield, supported by strong free cash flow and double-digit projected EPS growth. Advanced Connectivity revenue and EBITDA are growing, driven by record fiber additions, bundling momentum, and margin expansion. SpaceX competitive fears are likely overstated, while integration of Lumen assets and continued EPS growth underpin strong total return potential. Read the full article on Seeking Alpha
NFLX
US$76.02
Netflix
7D
3.0%
1Y
-41.1%
GOOGL
US$366.46
Alphabet
7D
3.6%
1Y
107.3%
TMUS
US$181.79
T-Mobile US
7D
4.5%
1Y
-23.5%
SPOT
US$483.01
Spotify Technology
7D
4.5%
1Y
-34.4%
TKO
US$192.30
TKO Group Holdings
7D
-9.1%
1Y
9.1%
VZ
US$42.07
Verizon Communications
7D
-4.6%
1Y
-1.7%
DIS
US$97.41
Walt Disney
7D
-1.2%
1Y
-20.9%
FOXA
US$55.87
Fox
7D
10.9%
1Y
1.9%
SPCX
US$160.35
Space Exploration Technologies
7D
-2.3%
1Y
n/a
New Narrative • Jul 02

WHY YOU SHOULD NOT BUY THE SPACEX IPO

Originally posted on June 5th 2026 on the Woodworth Contrarian Fund News Page: https://www.woodworth.fund/news/why-you-should-not-buy-the-spacex-ipo Brought to you by The Millegans & The Woodworth Contrarian Fund Sisyphus of Wall Street & The Weight of Hype: Why chasing marquee allocations is a rigged game—and what contrarians do instead. Overview: Biggest IPO ever… for whom?
ASTS
US$80.64
AST SpaceMobile
7D
-7.1%
1Y
76.5%
CMCSA
US$23.38
Comcast
7D
-3.5%
1Y
-34.0%
Narrative Update • Jun 30

CMCSA: Broadband Pricing Reset Will Restrain Returns Despite NBCUniversal Spin Off

The analyst fair value estimate for Comcast has been revised modestly higher to about $22.22 per share from roughly $21.50, reflecting fresh Buy ratings and higher $31 to $32 price targets tied to the planned NBCUniversal spin-off and renewed focus on the broadband business. Analyst Commentary Recent research on Comcast highlights a mix of renewed optimism around the planned NBCUniversal spin off and lingering caution around broadband growth, competition, and earnings visibility.
TTWO
US$258.41
Take-Two Interactive Software
7D
4.6%
1Y
6.5%
WBD
US$26.12
Warner Bros. Discovery
7D
-3.7%
1Y
137.0%
Seeking Alpha • Jun 25

WBD: Thanks To Oracle, Warner Just Might Be The Newest AI Stock

Summary Warner Bros. Discovery remains in merger limbo, with EU approval likely but significant U.S. state opposition mounting. WBD's movie performance is lagging, reflecting the front-loading of its top films into 2025 at the expense of 2026. Recent declines in Oracle stock may threaten merger financing, with Ellison’s liquidity tied to ORCL’s value. The state challenge has a real chance of success, although my base case remains merger approval. I maintain a Hold (avoid) rating on WBD, as merger probability and operational headwinds balance out potential upside. Read the full article on Seeking Alpha