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Telephone & Data Systems (TDS) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Telephone & Data Systems (TDS - Free Report) closed at $22.52, marking a -1.4% move from the previous day. This change lagged the S&P 500's 0.81% loss on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 1.27%.

Heading into today, shares of the parent of U.S. Cellular and TDS Telecom had gained 18.04% over the past month, outpacing the Utilities sector's loss of 0.63% and the S&P 500's gain of 5.06% in that time.

Investors will be hoping for strength from TDS as it approaches its next earnings release. In that report, analysts expect TDS to post earnings of $0.26 per share. This would mark year-over-year growth of 73.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.30 billion, down 1.9% from the year-ago period.

TDS's full-year Zacks Consensus Estimates are calling for earnings of $1.50 per share and revenue of $5.20 billion. These results would represent year-over-year changes of +45.63% and +0.5%, respectively.

It is also important to note the recent changes to analyst estimates for TDS. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 48.51% higher. TDS is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, TDS currently has a Forward P/E ratio of 15.23. Its industry sports an average Forward P/E of 15.23, so we one might conclude that TDS is trading at a no noticeable deviation comparatively.

The Wireline - National industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 128, which puts 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.

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