Telephone & Data Systems (TDS) Gains But Lags Market: What You Should Know
In the latest trading session, Telephone & Data Systems (TDS) closed at $18.61, marking a +0.76% move from the previous day. This change lagged the S&P 500's 1.6% gain on the day. Elsewhere, the Dow gained 1.34%, while the tech-heavy Nasdaq added 2.26%.
Heading into today, shares of the parent of U.S. Cellular and TDS Telecom had lost 22.1% over the past month, lagging the Utilities sector's loss of 4.13% and the S&P 500's loss of 5.3% 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. Meanwhile, our latest consensus estimate is calling for revenue of $1.30 billion, down 1.9% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.50 per share and revenue of $5.20 billion, which would represent changes of +45.63% and +0.5%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for TDS. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.49% higher. TDS is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that TDS has a Forward P/E ratio of 12.31 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.31.
The Wireline - National industry is part of the Utilities sector. This group has a Zacks Industry Rank of 129, putting it in the top 50% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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