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Is Telephone & Data Systems (TDS) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Telephone & Data Systems (TDS - Free Report) is a stock many investors are watching right now. TDS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 14.70, while its industry has an average P/E of 18.96. Over the last 12 months, TDS's Forward P/E has been as high as 29.25 and as low as 13.61, with a median of 19.91.

Finally, we should also recognize that TDS has a P/CF ratio of 1.88. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 2.07. Over the past year, TDS's P/CF has been as high as 2.80 and as low as 1.67, with a median of 2.12.

These are just a handful of the figures considered in Telephone & Data Systems's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TDS is an impressive value stock right now.


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