In the latest trading session, Telephone & Data Systems (TDS - Free Report) closed at $18.06, marking a -1.04% move from the previous day. This change lagged the S&P 500's 0.01% gain on the day. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq lost 0.36%.
Heading into today, shares of the parent of U.S. Cellular and TDS Telecom had lost 9.92% over the past month, lagging the Utilities sector's gain of 4.54% and the S&P 500's gain of 2.55% in that time.
Wall Street will be looking for positivity from TDS as it approaches its next earnings report date. In that report, analysts expect TDS to post earnings of $0.27 per share. This would mark year-over-year growth of 80%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.30 billion, down 1.75% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.50 per share and revenue of $5.23 billion, which would represent changes of +45.63% and +1.07%, respectively, from the prior year.
Any recent changes to analyst estimates for TDS should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. TDS is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note TDS's current valuation metrics, including its Forward P/E ratio of 12.17. Its industry sports an average Forward P/E of 12.17, 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 122, which puts it in the top 49% 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.