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Why Telephone and Data Systems (TDS) Could Be Positioned for a Surge

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Telephone and Data Systems, Inc. (TDS - Free Report) is a diversified telecom service provider in the United States that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on TDS’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Telephone and Data Systems could be a solid choice for investors.

Current Quarter Estimates for TDS

In the past 60 days, two estimates have gone higher for Telephone and Data Systems while one has gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 24 cents a share 60 days ago, to 36 cents today, a move of 50%.

Current Year Estimates for TDS

Meanwhile, Telephone and Data Systems’s current year figures are also looking quite promising, with three estimates moving higher in the past 60 days, compared to one lower. The consensus estimate trend has also seen a boost for this time frame, increasing from 98 cents per share 60 days ago to $1.49 per share today, an increase of 52%.

Bottom Line

The stock has also started to move higher lately, adding 20.5% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So, investors may want to consider this Zacks Rank #1 (Strong Buy) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank stocks here.

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