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U.S. Telecom Sector Analysis
UpdatedMay 10, 2025
DataAggregated Company Financials
Companies473
- 7D-2.1%
- 3M-10.5%
- 1Y13.2%
- YTD-4.4%
Over the last 7 days, the Telecom industry has dropped 2.1%, driven by a pullback from Alphabet of 6.9%. On the other hand Walt Disney is actually up 15%. Over the past 12 months, the industry was up 13%. As for the next few years, earnings are expected to grow by 12% per annum.
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 |
|---|---|---|---|---|---|---|
| Sat, 10 May 2025 | US$5.8t | US$1.6t | US$247.4b | 17.1x | 23.5x | 3.6x |
| Mon, 07 Apr 2025 | US$5.2t | US$1.6t | US$227.3b | 15.3x | 22.8x | 3.3x |
| Wed, 05 Mar 2025 | US$6.1t | US$1.6t | US$228.1b | 16.2x | 26.8x | 3.8x |
| Fri, 31 Jan 2025 | US$6.5t | US$1.6t | US$208.6b | 17.4x | 31x | 4.1x |
| Sun, 29 Dec 2024 | US$6.2t | US$1.6t | US$189.8b | 18.5x | 32.4x | 3.9x |
| Tue, 26 Nov 2024 | US$5.7t | US$1.6t | US$189.7b | 19.7x | 30.3x | 3.7x |
| Thu, 24 Oct 2024 | US$5.6t | US$1.5t | US$179.8b | 18.4x | 31.2x | 3.7x |
| Sat, 21 Sep 2024 | US$5.5t | US$1.5t | US$188.2b | 18.1x | 29.1x | 3.6x |
| Mon, 19 Aug 2024 | US$5.3t | US$1.6t | US$189.1b | 18.8x | 28.2x | 3.4x |
| Wed, 17 Jul 2024 | US$5.5t | US$1.5t | US$191.1b | 18.9x | 29x | 3.6x |
| Fri, 14 Jun 2024 | US$5.4t | US$1.5t | US$191.0b | 16.4x | 28.1x | 3.5x |
| Sun, 12 May 2024 | US$5.2t | US$1.5t | US$193.7b | 18.5x | 26.8x | 3.4x |
| Tue, 09 Apr 2024 | US$5.2t | US$1.5t | US$176.0b | 19.1x | 29.3x | 3.4x |
| Thu, 07 Mar 2024 | US$4.8t | US$1.5t | US$173.7b | 16.7x | 27.5x | 3.2x |
| Sat, 03 Feb 2024 | US$5.0t | US$1.5t | US$161.9b | 14.8x | 31x | 3.3x |
| Mon, 01 Jan 2024 | US$4.6t | US$1.5t | US$128.1b | 15.7x | 36.2x | 3x |
| Wed, 29 Nov 2023 | US$4.5t | US$1.5t | US$128.3b | 15.7x | 35.1x | 3x |
| Fri, 27 Oct 2023 | US$4.0t | US$1.5t | US$125.9b | 13.2x | 32.1x | 2.7x |
| Sun, 24 Sep 2023 | US$4.2t | US$1.5t | US$104.7b | 14.1x | 40.1x | 2.8x |
| Tue, 22 Aug 2023 | US$4.1t | US$1.5t | US$102.8b | 14.4x | 40.3x | 2.8x |
| Thu, 20 Jul 2023 | US$4.3t | US$1.5t | US$107.1b | 15.8x | 40x | 2.9x |
| Sat, 17 Jun 2023 | US$4.2t | US$1.5t | US$107.1b | 17.4x | 38.7x | 2.8x |
| Mon, 15 May 2023 | US$3.9t | US$1.5t | US$105.2b | 16.3x | 36.9x | 2.6x |
| Wed, 12 Apr 2023 | US$3.8t | US$1.5t | US$115.8b | 16.9x | 32.8x | 2.6x |
| Fri, 10 Mar 2023 | US$3.4t | US$1.5t | US$115.0b | 17.7x | 29.9x | 2.3x |
| Sun, 05 Feb 2023 | US$3.8t | US$1.5t | US$136.3b | 19.7x | 28x | 2.6x |
| Tue, 03 Jan 2023 | US$3.2t | US$1.5t | US$166.4b | 15.2x | 19.1x | 2.1x |
| Thu, 01 Dec 2022 | US$3.4t | US$1.5t | US$166.6b | 18.4x | 20.6x | 2.3x |
| Sat, 29 Oct 2022 | US$3.3t | US$1.5t | US$168.0b | 15.7x | 19.4x | 2.2x |
| Mon, 26 Sep 2022 | US$3.3t | US$1.5t | US$187.6b | 14.4x | 17.7x | 2.2x |
| Wed, 24 Aug 2022 | US$3.8t | US$1.5t | US$186.8b | 16.8x | 20.3x | 2.6x |
| Fri, 22 Jul 2022 | US$3.9t | US$1.5t | US$214.4b | 17x | 18.3x | 2.7x |
| Sun, 19 Jun 2022 | US$4.2t | US$1.5t | US$214.0b | 16.9x | 19.7x | 2.9x |
| Tue, 17 May 2022 | US$4.0t | US$1.5t | US$218.1b | 17.2x | 18.1x | 2.7x |
Price to Earnings Ratio
18.1x
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 23.5x which is lower than its 3-year average PE of 28.9x.
- The 3-year average PS ratio of 3.0x is lower than the industry's current PS ratio of 3.6x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have grown 4.3% per year over the last three years.
- Revenues for these companies have grown 3.1% 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 Market | -0.30% | |
| Telecom | -2.14% | |
| Media | 3.47% | |
| Entertainment | 1.38% | |
| Telecom Services and Carriers | 0.099% | |
| Wireless Telecom | -1.79% | |
| Interactive Media and Services | -4.09% | |
Industry PE
- Investors are most optimistic about the Entertainment industry which is trading above its 3-year average PE ratio.
- Analysts expect its future annual earnings growth (21.7%) to be largely in line with prior year's earnings growth.
- 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 0.61x.
Forecasted Growth
- Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 22% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Interactive Media and Services industry is expected to see its earnings grow by 9.4% 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 | |
|---|---|---|---|---|---|
| DIS Walt Disney | US$105.94 | 14.5% +US$23.3b | 0.1% | PE21.4x | |
| TTD Trade Desk | US$71.04 | 31.3% +US$8.3b | -18.6% | PE84.7x | |
| CHTR Charter Communications | US$401.73 | 4.3% +US$2.3b | 45.8% | PE10.9x | |
| T AT&T | US$27.84 | 0.8% +US$1.7b | 62.1% | PE17.1x | |
| PINS Pinterest | US$29.22 | 8.7% +US$1.6b | -30.4% | PE10.4x |
