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Should Value Investors Buy Telephone & Data Systems (TDS) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Telephone & Data Systems (TDS - Free Report) . TDS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 16.19. This compares to its industry's average Forward P/E of 20.29. 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 17.65.
Finally, investors will want to recognize that TDS has a P/CF ratio of 2.06. 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. TDS's current P/CF looks attractive when compared to its industry's average P/CF of 2.07. Over the past 52 weeks, TDS's P/CF has been as high as 2.78 and as low as 1.68, with a median of 2.02.
These are only a few of the key metrics included in Telephone & Data Systems's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TDS looks like an impressive value stock at the moment.
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Should Value Investors Buy Telephone & Data Systems (TDS) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Telephone & Data Systems (TDS - Free Report) . TDS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 16.19. This compares to its industry's average Forward P/E of 20.29. 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 17.65.
Finally, investors will want to recognize that TDS has a P/CF ratio of 2.06. 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. TDS's current P/CF looks attractive when compared to its industry's average P/CF of 2.07. Over the past 52 weeks, TDS's P/CF has been as high as 2.78 and as low as 1.68, with a median of 2.02.
These are only a few of the key metrics included in Telephone & Data Systems's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TDS looks like an impressive value stock at the moment.