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Here's Why You Should Add U.S. Cellular (USM) to Your Portfolio

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Shares of United States Cellular Corporation (USM - Free Report) have gained 7.2% in the past month compared with 6.9% growth of the industry. The stock currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.



This Chicago, IL-based company delivered a trailing four-quarter earnings surprise of 231.1%, on average. The Zacks Consensus Estimate for its current-year earnings has been revised 12.1% upward over the past 30 days.

Growth Drivers

U.S. Cellular, a subsidiary of Telephone and Data Systems, Inc. (TDS - Free Report) , is the fourth-largest full-service wireless carrier in the United States. It provides a range of wireless products and services, excellent customer support and a high-quality network to customers.

The company has been building a stronger network with the latest 5G technology. It achieved a 5G millimeter-wave milestone in collaboration with tech leaders, Qualcomm (QCOM - Free Report) and Ericsson (ERIC - Free Report) . U.S. Cellular is on a multi-year path to bring 5G to as many customers as possible, with new markets on the horizon. It had deployed 5G technology in urban and rural communities in Iowa and Wisconsin.

The company is helping customers who are making adjustments in their daily lives to minimize in-person interactions. U.S. Cellular continues to strengthen its customer base and identify new revenue streams while reducing expenses across the business. It aims to offer the best wireless experience to customers by providing a 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.

U.S. Cellular continues to expand its footprint while adopting unlimited plans to enhance average revenue per user (ARPU). It has made progress on strategic objectives, growing customer base by increasing handset connections and customer loyalty to improve revenues and profitability. Churn rate mitigation strategies and accretive subscriber base should aid its performance, going forward.

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