What's the top S&P 500 sector this year? Communications Services. And it's largely due to three runaway winners.
Meta Platforms, T-Mobile US and Live Nation Entertainment are the top performing stocks in the S&P 500 Communications Services sector this year, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. Each of these stocks is up more than 17% already this year.
And that's an important part of the market. The S&P 500 Communications Services sector is up 8.1% this year. That makes it the No. 1 sector, topping the Materials sector's 7.2% rise.
Finding The Top S&P 500 Sector
A surprising mix of sectors is driving the S&P 500 this year. It's mainly a group of value-oriented sectors.
Materials, financial, health care and utilities stocks follow communications services as the top sectors. Financials alone are up 7%. Markets are still adjusting to the threat of tariffs, which could make imported materials more costly.
And technology? The high-tech sector is struggling this year, gaining just 2.9%. That's the second-worst showing in the S&P 500. And it trails the S&P 500's gain of 4% in 2025 so far.
What's Working In Communications?
There's no question what's driving communications services. It's all about Meta. Shares are up 24.4% this year.
Gains in the parent of Instagram and Facebook have an outsize influence on the sector due to its giant $1.8 trillion market value. That's nearly a third of the 19-stock sector's entire value. Meta's RS Rating is now 92.
The company is benefitting from hopes of lighter regulation. And strong earnings help, too. Analysts think Meta's profit will rise 5% in 2025 and 14% in 2026. And Meta already has a nearly perfect EPS Rating of 96.
Cellular carrier T-Mobile US is also a big communications winner. Shares are up 20% this year, just behind Meta's gain. At a market value of $302.7 billion, T-Mobile doesn't carry the same weight as Meta. But it's still an upward force. The company's stock holds an RS Rating of 92. And analysts call for 9% earnings growth in 2025 and 20% in 2026. The stock is forming a cup base.
For now, the communications sector is powering the S&P 500.
Top S&P 500 Communications Services Stocks
| Company | Ticker | YTD % ch. |
|---|---|---|
| Meta Platforms | META | 24.4% |
| T-Mobile US | TMUS | 20.1% |
| Live Nation Entertainment | LYV | 17.8% |
| Take-Two Interactive Software | TTWO | 14.1% |
| Netflix | NFLX | 17.1% |
| AT&T | T | 12.6% |
| Fox | FOXA | 14.1% |
| News Corp | NWSA | 7.2% |
| Match Group | MTCH | 4.0% |
| Charter Communications | CHTR | 5.3% |
Sources: S&P Global Market Intelligence, IBD
Follow Matt Krantz on X (Twitter) @mattkrantz
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