Telecom stocks surge 2026, deep-value P/E ratios
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- Verizon' stock rose 25.5% YTD while the S&P 500 fell 1.5%, making it a top performer in the telecom sector.
- AT&T posted a 15.3% gain YTD and trades at a forward P/E of 12.2, well below the sector average of 21.4.
- T‑Mobile' forward P/E of 20.2 is higher than its rivals, but analysts expect its revenue growth to outpace Verizon and AT&T.
- Charter Communications rallied 11.3% YTD after double‑digit declines last year.
- Comcast rallied 14% YTD after double‑digit declines last year.
- Russell 3000 Value Index rose 3.3% YTD as the Russell 3000 Growth Index fell 5.5% YTD.
- Verizon added 616,000 net postpaid phone subscribers in Q4, its strongest quarterly subscriber gain since 2019.
Why it matters: Investors benefit from cheap, dividend‑rich telecom equities that have outperformed the broader market, while value‑oriented funds see gains as the Russell 3000 Value Index rises and growth funds lag. At the same time, cable operators like Charter and Comcast are recovering, narrowing the gap with telcos.
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