S&P 500 Communication Services Sector Surges Over 21% in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2026
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Source: seekingalpha
- Sector Performance: In 2025, the S&P 500 Communication Services sector surged over 21%, making it the second-best performing sector, significantly outperforming the broader S&P 500 Index's nearly 17% growth, indicating resilience amid economic uncertainty.
- Investment Trends: Despite only a 0.9% growth in the fourth quarter compared to the S&P 500's 2%, investment in artificial intelligence infrastructure continued to attract investor attention, reflecting ongoing confidence in technological innovation.
- Quant Rating Overview: According to Seeking Alpha's Quant Rating system, the Communication Services sector has an average health score of 3.10 among 107 stocks with market capitalizations above $2 billion, with 15 stocks rated as Buy or higher, indicating strong investment potential in the sector.
- Stock Performance Disparities: Ahead of the upcoming earnings season, stocks like IHS Holding, Deutsche Telekom, and Walt Disney received quant ratings above 4.50, driven by profitability and momentum, while low-rated stocks like Rumble and Rightmove showed significant declines in valuation.
Analyst Views on DIS
Wall Street analysts forecast DIS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DIS is 137.29 USD with a low forecast of 123.00 USD and a high forecast of 152.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 111.310
Low
123.00
Averages
137.29
High
152.00
Current: 111.310
Low
123.00
Averages
137.29
High
152.00
About DIS
The Walt Disney Company is a diversified worldwide entertainment company. The Company's segments include Entertainment, Sports and Experiences. The Entertainment segment generally encompasses its non-sports focused global film and episodic content production and distribution activities. The lines of business within the Entertainment segment along with their business activities include Linear Networks, Direct-to-Consumer, and Content Sales/Licensing. The Sports segment encompasses its sports-focused global television and direct-to-consumer (DTC) video streaming content production and distribution activities. The lines of business within the Sports segment include ESPN and Star. The Experiences segment includes Parks and Experiences and Consumer Products. Parks and Experiences consists of Walt Disney World Resort in Florida, Disneyland Resort in California, Disney Cruise Line, and others. Consumer Products includes licensing of its trade names, characters, visual, literary and other IP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
