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Is Telephone & Data Systems (TDS) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Telephone & Data Systems (TDS - Free Report) . TDS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 14.87 right now. For comparison, its industry sports an average P/E of 18.80. 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 19.17.
Finally, our model also underscores that TDS has a P/CF ratio of 1.84. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. TDS's current P/CF looks attractive when compared to its industry's average P/CF of 2.07. Within the past 12 months, TDS's P/CF has been as high as 2.80 and as low as 1.68, with a median of 2.06.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Telephone & Data Systems is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TDS feels like a great value stock at the moment.
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Is Telephone & Data Systems (TDS) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Telephone & Data Systems (TDS - Free Report) . TDS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 14.87 right now. For comparison, its industry sports an average P/E of 18.80. 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 19.17.
Finally, our model also underscores that TDS has a P/CF ratio of 1.84. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. TDS's current P/CF looks attractive when compared to its industry's average P/CF of 2.07. Within the past 12 months, TDS's P/CF has been as high as 2.80 and as low as 1.68, with a median of 2.06.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Telephone & Data Systems is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TDS feels like a great value stock at the moment.