Communication services in 2026 tracks digital advertising, subscriber economics, content monetization, and telecom investment. Watch how platform businesses convert scale into earnings growth versus lower-growth telecom operators.
Sector AnalysisETF: XLCUpdated May 6, 2026
Communication Services Sector Stocks
Communication Services combines traditional telecom with media, streaming, and internet platforms. Since the GICS reshuffle moved major digital advertising companies out of technology, the sector spans very different economic models. XLC is the large-cap benchmark. Screening is especially valuable because valuation, capital intensity, and growth durability differ sharply between telecom and platform businesses.
Research ByVCP Scanner Editorial Team
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Live Screener
Rank the Communication Services Sector Stocks with live market and fundamental data
Scan the sector leaders, compare valuations and fundamentals, then open the full screener to refine your criteria.
Quick screens:Large Cap Communication→Dividend Communication→Growth Communication→Profitable Communication→
| Ticker | Company | Price | Mkt Cap | P/E | ROE | Div Yield | |
|---|---|---|---|---|---|---|---|
| Netflix, Inc. | $87.89 | $372.42B | 34.7 | 42.8% | — | ||
| Comcast Holdings Corp. | $63.50 | $229.68B | 11.8 | 21.5% | 2.1% | ||
| T-Mobile US, Inc. | $194.35 | $210.32B | 20.0 | 18.2% | 1.9% | ||
| Verizon Communications Inc. | $47.34 | $199.66B | 11.7 | 16.6% | 5.7% | ||
| AT&T Inc. | $25.93 | $181.06B | 8.5 | 17.6% | 4.4% | ||
| The Walt Disney Company | $100.48 | $179.96B | 14.7 | 11.3% | 1% | ||
| AT&T Inc. 5.35% GLB NTS 66 | $21.58 | $132.5B | 7.1 | 17.6% | 5.3% | ||
| Comcast Corporation | $26.46 | $96.42B | 4.9 | 21.6% | 5.1% | ||
| Spotify Technology S.A. | $419.53 | $86.35B | 34.2 | 31.9% | — | ||
| América Móvil, S.A.B. de C.V. | $27.25 | $81.99B | 18.5 | 18.1% | 2.2% | ||
| Warner Bros. Discovery, Inc. | $27.24 | $73.77B | -5.9 | -27.8% | — | ||
| DoorDash, Inc. | $166.14 | $71.59B | 78.0 | 10.5% | — | ||
| RELX Plc | $36.16 | $65.4B | 26.0 | 55.7% | 2.2% | ||
| Baidu, Inc. | $126.24 | $44.15B | 13.1 | 8.7% | — | ||
| Nebius Group N.V. | $175.81 | $38.58B | 1598.3 | 2.6% | — | ||
| Vodafone Group Public Limited Company | $15.74 | $36.67B | -8.4 | -7% | 5.1% | ||
| Live Nation Entertainment, Inc. | $157.26 | $36.54B | -655.3 | 26.4% | — | ||
| Chunghwa Telecom Co., Ltd. | $43.11 | $33.44B | 27.3 | 9.9% | — | ||
| Reddit, Inc. | $171.70 | $32.88B | 65.5 | 20.9% | — | ||
| Twilio Inc. | $195.58 | $29.63B | 931.3 | 0.4% | — | ||
| Telefônica Brasil S.A. | $16.20 | $25.88B | 23.9 | 8% | 1.9% | ||
| Telefónica, S.A. | $4.33 | $24.41B | -65.1 | -0.2% | 8.5% | ||
| Omnicom Group Inc. | $77.64 | $24.09B | -287.6 | -0.6% | 3.5% | ||
| BCE Inc. | $24.10 | $22.47B | 4.8 | 31.1% | 7.1% | ||
| TKO Group Holdings, Inc. | $186.94 | $21.71B | 82.7 | 5.9% | 0.5% | ||
| Charter Communications, Inc. | $158.23 | $20.04B | 4.4 | 24.8% | — | ||
| Rogers Communications Inc. | $36.58 | $19.76B | 3.9 | 39.7% | 3.9% | ||
| TELUS Corporation | $12.59 | $19.65B | 23.8 | 6.7% | 6.2% | ||
| Formula One Group | $87.40 | $19.48B | — | — | — | ||
| Roku, Inc. | $124.42 | $18.38B | 210.9 | 3.4% | — |
Market Comparison
Communication Services Sector vs S&P 500 in one glance
This should answer the only question that matters here: are you getting something better than the market for the price you are paying?
Price vs market
Cheaper
12% below S&P 500 trailing P/E
Quality vs market
Higher quality
Net margin 34.2% vs 24.3%; ROE 35.8% vs 44.1%
Income vs market
Lower yield
Sector yield 0.46% vs 0.99%
Comparison table
Winner should register in under three seconds.
| Metric | Communication Services Sector | S&P 500 | Delta | Winner |
|---|---|---|---|---|
Trailing P/E Sector is cheaper | 29.6x | 33.6x | -12% | Sector cheaper |
Forward P/E Close to market | 25.4x | 24.4x | +4% | Near parity |
EV/EBITDA Sector is cheaper | 20.1x | 22.0x | -9% | Sector cheaper |
Net Margin Sector is stronger | 34.2% | 24.3% | +41% | Sector stronger |
ROE Market is stronger | 35.8% | 44.1% | -19% | S&P 500 stronger |
Dividend Yield Market is stronger | 0.5% | 1.0% | -54% | S&P 500 yields more |
History check
Is the current premium normal?
1-year contextRich vs history
100th percentile; range 15.1x to 29.6x
5-year contextRich vs history
100th percentile; range 7.5x to 29.6x
Internal health
Median revenue growth4.4%
Median gross margin49.4%
Median FCF margin14.8%
Against the S&P 500, Communication Services Sector currently trades at 29.6x trailing earnings versus 33.6x for the broad market. That premium only makes sense if investors keep believing the sector deserves better margins, stronger returns on equity, and more durable growth than the index overall.
Industry Breakdown
Where the real weight sits inside Communication Services Sector
These cards are built from the full sector universe, then ranked by market cap so you can see which pockets are leading, rich, resilient, or dangerously concentrated.
Industry Scoreboard
Fast scan of Communication Services Sector industry setups
Use this table to spot heavyweights, cheap pockets, leaders, and genuinely beaten-down areas before opening the detailed cards below.
Telecom Services 61 stocks | 43.6% $1.27T | Neutral +0.4% median 3M | Cheap 9.6x median Fwd P/E | High 8.1% median ROE | Weak 0.1% rev growth | Attractive Diversified |
Entertainment 49 stocks | 29.9% $867.68B | Neutral +7.5% median 3M | Premium 21.5x median Fwd P/E | Weak 0.2% median ROE | Weak 3.5% rev growth | Mixed Concentrated |
Internet Services 61 stocks | 13.2% $383.82B | Neutral -1.2% median 3M | Fair 12.2x median Fwd P/E | Mixed -2.0% median ROE | Strong 5.7% rev growth | Watchlist Diversified |
Broadcasting 18 stocks | 8.2% $237.09B | Leading +2.4% median 3M | Fair 13.0x median Fwd P/E | Weak -13.1% median ROE | Weak -6.6% rev growth | Mixed One-name heavy |
Publishing 10 stocks | 3.3% $94.5B | Leading +21.4% median 3M | Premium 23.7x median Fwd P/E | High 20.8% median ROE | Average -4.1% rev growth | Expensive Leader One-name heavy |
Advertising & Marketing 43 stocks | 1.9% $55.31B | Neutral +1.3% median 3M | Premium 9.3x median Fwd P/E | Weak 2.5% median ROE | Strong 2.7% rev growth | Mixed Concentrated |
Gaming & Multimedia 2 stocks | 0.0% $40M | Leading +49.3% median 3M | Cheap 6.0x median Fwd P/E | High - median ROE | Weak -50.7% rev growth | Attractive One-name heavy |
Asset Management 1 stocks | 0.0% $28M | Leading +67.4% median 3M | Fair - median Fwd P/E | Mixed -110.0% median ROE | Weak - rev growth | Mixed One-name heavy |
Showing 8 of 8 industries in Communication Services Sector.
Setup is a quick read of value, quality, growth, momentum, and concentration together.
43.6% OF SECTOR
Telecom Services
Cheap vs sectorHigh qualityNeutralWeak growthDiversified
Telecom Services is a core pocket of communication services, moving broadly in line with the rest of the sector; growth is softer than the sector average, business quality is stronger than the sector median, and valuation sits below sector norms.
Median 3M return
+0.4%
Forward P/E
9.6x
Top 3 weight
46.6%
Market cap
$1.27T
Coverage
61 stocks
Breadth
52% pos. in 3M
Open filtered screener
29.9% OF SECTOR
Entertainment
Premium vs sectorWeak qualityNeutralWeak growthConcentrated
Entertainment is a core pocket of communication services, moving broadly in line with the rest of the sector; growth is softer than the sector average, quality metrics trail the sector median, and valuation still carries a premium. Leadership is concentrated in a few names.
Median 3M return
+7.5%
Forward P/E
21.5x
Top 3 weight
72.2%
Market cap
$867.68B
Coverage
49 stocks
Breadth
67% pos. in 3M
Open filtered screener
13.2% OF SECTOR
Internet Services
Fairly pricedMixed qualityNeutralStrong growthDiversified
Internet Services is a major pocket of communication services, moving broadly in line with the rest of the sector; growth is running above sector norms, quality signals are mixed, and valuation is close to sector norms.
Median 3M return
-1.2%
Forward P/E
12.2x
Top 3 weight
52.7%
Market cap
$383.82B
Coverage
61 stocks
Breadth
47% pos. in 3M
Open filtered screener
8.2% OF SECTOR
Broadcasting
Fairly pricedWeak qualityLeadingWeak growthOne-name heavy
Broadcasting is a meaningful pocket of communication services, still leading on price action; growth is softer than the sector average, quality metrics trail the sector median, and valuation is close to sector norms. Leadership is extremely concentrated in one or two names.
Median 3M return
+2.4%
Forward P/E
13.0x
Top 3 weight
98.6%
Market cap
$237.09B
Coverage
18 stocks
Breadth
50% pos. in 3M
Open filtered screener
3.3% OF SECTOR
Publishing
Premium vs sectorHigh qualityLeadingAverage growthOne-name heavy
Publishing is a smaller pocket of communication services, still leading on price action; growth is near the sector average, business quality is stronger than the sector median, and valuation still carries a premium. Leadership is extremely concentrated in one or two names.
Median 3M return
+21.4%
Forward P/E
23.7x
Top 3 weight
92.6%
Market cap
$94.5B
Coverage
10 stocks
Breadth
100% pos. in 3M
Open filtered screener
1.9% OF SECTOR
Advertising & Marketing
Premium vs sectorWeak qualityNeutralStrong growthConcentrated
Advertising & Marketing is a smaller pocket of communication services, moving broadly in line with the rest of the sector; growth is running above sector norms, quality metrics trail the sector median, and valuation still carries a premium. Leadership is concentrated in a few names.
Median 3M return
+1.3%
Forward P/E
9.3x
Top 3 weight
67.0%
Market cap
$55.31B
Coverage
43 stocks
Breadth
50% pos. in 3M
Open filtered screener
0.0% OF SECTOR
Gaming & Multimedia
Cheap vs sectorHigh qualityLeadingWeak growthOne-name heavy
Gaming & Multimedia is a smaller pocket of communication services, still leading on price action; growth is softer than the sector average, business quality is stronger than the sector median, and valuation sits below sector norms. Leadership is extremely concentrated in one or two names.
Median 3M return
+49.3%
Forward P/E
6.0x
Top 3 weight
100.0%
Market cap
$40M
Coverage
2 stocks
Breadth
50% pos. in 3M
Open filtered screener
0.0% OF SECTOR
Asset Management
Fairly pricedMixed qualityLeadingWeak growthOne-name heavy
Asset Management is a smaller pocket of communication services, still leading on price action; growth is softer than the sector average, quality signals are mixed, and valuation is close to sector norms. Leadership is extremely concentrated in one or two names.
Median 3M return
+67.4%
Forward P/E
-
Top 3 weight
100.0%
Market cap
$28M
Coverage
1 stocks
Breadth
100% pos. in 3M
Open filtered screener
Sector Outlook
Communication Services Sector Outlook - Q1 2026
Updated Q1 2026
Leadership may come from companies with stronger user engagement, ad pricing resilience, or disciplined capital returns. Capital-intensive operators depend more on execution and balance sheet management.
Relative valuation works best within the right subgroup rather than across the entire basket.
Earnings Calendar
Upcoming Earnings in Communication Services Sector
Earnings reports are the biggest near-term catalysts for sector moves. Track which names report in the next 60 days and size your positions accordingly.
No earnings in the next 60 days
Check individual stock pages for the latest earnings dates and estimated EPS.
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