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Telephone & Data Systems (TDS) Gains As Market Dips: What You Should Know

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Telephone & Data Systems (TDS - Free Report) closed at $20.53 in the latest trading session, marking a +0.79% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.46%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 1.25%.

Prior to today's trading, shares of the parent of U.S. Cellular and TDS Telecom had lost 15.02% over the past month. This has lagged the Utilities sector's loss of 1.39% and the S&P 500's gain of 1% in that time.

TDS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.26, up 73.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.30 billion, down 1.9% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.50 per share and revenue of $5.20 billion. These totals would mark changes of +45.63% and +0.5%, respectively, from last year.

Any recent changes to analyst estimates for TDS should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.49% higher. TDS currently has a Zacks Rank of #3 (Hold).

Investors should also note TDS's current valuation metrics, including its Forward P/E ratio of 13.58. For comparison, its industry has an average Forward P/E of 13.58, which means TDS is trading at a no noticeable deviation to the group.

The Wireline - National industry is part of the Utilities sector. This group has a Zacks Industry Rank of 127, putting it in the top 50% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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