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U.S. Cellular Shares Up 15.4% in 3 Months: What's Driving it?
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Shares of United States Cellular Corporation (USM - Free Report) have returned 15.4% compared with 7.6% growth of the industry in the past three months. The stock currently carries a Zacks Rank #2 (Buy) and a VGM Score of A.
The Chicago, IL-based wireless carrier is an 83%-owned subsidiary of Telephone and Data Systems, Inc. (TDS - Free Report) . The company topped earnings estimates twice in the last four quarters and missed the same in the remaining two quarters. It has a trailing four-quarter positive earnings surprise of 104.1%, on average. The Zacks Consensus Estimate for its current-year earnings has been revised 9.3% upward in the past 30 days.
Growth Drivers
U.S. Cellular provides a range of wireless products and services, excellent customer support, and a high-quality network to customers with 4.9 million connections in 21 states. The company is building a stronger network with the latest 5G technology. Earlier this year, U.S. Cellular deployed 5G technology to customers in both urban and rural communities in Iowa and Wisconsin. The company is on a multi-year path to bring 5G to as many customers as possible, with new markets to be introduced later in 2020.
U.S. Cellular secured the Federal Communications Commission’s (FCC) Special Temporary Authority to use the additional spectrum to meet increased customer demand for mobile broadband during the COVID-19 pandemic. As a result, it can operate for 60 days in spectrum licensed to Advantage Spectrum in the AWS-3 Band to provide further capacity to customers in parts of California, Oregon, Washington and Wisconsin.
The company is trying to better serve customers who are making adjustments in their daily lives to minimize in-person interactions and slow the spread of the virus. It continues to strengthen its customer base and identify new revenue streams, while reducing expenses across the business. U.S. Cellular intends to offer the best wireless experience to customers by providing superior quality network and national coverage.
U.S. Cellular is well positioned to support the investment required for network enhancements, including the deployment of 5G technology. The company continues its network modernization program, adding capacity and speed while launching 5G services commercially and VoLTE in remaining markets.
On Jun 1, the company announced that it has appointed Laurent C. Therivel as president and CEO, effective Jul 1. Kenneth R. Meyers has been appointed as ‘senior advisor to the CEO’ until his retirement on Sep 4, 2020. Therivel has also been appointed to replace Meyers on both the U.S. Cellular and TDS boards of directors.
Ooma has a trailing four-quarter positive earnings surprise of 228.2%, on average.
Acacia has a trailing four-quarter positive earnings surprise of 17.7%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
U.S. Cellular Shares Up 15.4% in 3 Months: What's Driving it?
Shares of United States Cellular Corporation (USM - Free Report) have returned 15.4% compared with 7.6% growth of the industry in the past three months. The stock currently carries a Zacks Rank #2 (Buy) and a VGM Score of A.
The Chicago, IL-based wireless carrier is an 83%-owned subsidiary of Telephone and Data Systems, Inc. (TDS - Free Report) . The company topped earnings estimates twice in the last four quarters and missed the same in the remaining two quarters. It has a trailing four-quarter positive earnings surprise of 104.1%, on average. The Zacks Consensus Estimate for its current-year earnings has been revised 9.3% upward in the past 30 days.
Growth Drivers
U.S. Cellular provides a range of wireless products and services, excellent customer support, and a high-quality network to customers with 4.9 million connections in 21 states. The company is building a stronger network with the latest 5G technology. Earlier this year, U.S. Cellular deployed 5G technology to customers in both urban and rural communities in Iowa and Wisconsin. The company is on a multi-year path to bring 5G to as many customers as possible, with new markets to be introduced later in 2020.
U.S. Cellular secured the Federal Communications Commission’s (FCC) Special Temporary Authority to use the additional spectrum to meet increased customer demand for mobile broadband during the COVID-19 pandemic. As a result, it can operate for 60 days in spectrum licensed to Advantage Spectrum in the AWS-3 Band to provide further capacity to customers in parts of California, Oregon, Washington and Wisconsin.
The company is trying to better serve customers who are making adjustments in their daily lives to minimize in-person interactions and slow the spread of the virus. It continues to strengthen its customer base and identify new revenue streams, while reducing expenses across the business. U.S. Cellular intends to offer the best wireless experience to customers by providing superior quality network and national coverage.
U.S. Cellular is well positioned to support the investment required for network enhancements, including the deployment of 5G technology. The company continues its network modernization program, adding capacity and speed while launching 5G services commercially and VoLTE in remaining markets.
On Jun 1, the company announced that it has appointed Laurent C. Therivel as president and CEO, effective Jul 1. Kenneth R. Meyers has been appointed as ‘senior advisor to the CEO’ until his retirement on Sep 4, 2020. Therivel has also been appointed to replace Meyers on both the U.S. Cellular and TDS boards of directors.
Other Decent Choices
A couple of other top-ranked stocks in the broader industry are Ooma, Inc. (OOMA - Free Report) and Acacia Communications, Inc. , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ooma has a trailing four-quarter positive earnings surprise of 228.2%, on average.
Acacia has a trailing four-quarter positive earnings surprise of 17.7%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>