Telephone and Data Systems, Inc. (TDS) Hits Fresh High: Is There Still Room to Run?

Core Insights - Telephone & Data Systems (TDS) shares have increased by 9.4% over the past month, reaching a new 52-week high of $39.54, and have gained 15.8% since the beginning of the year, outperforming the Zacks Utilities sector and the Zacks Wireline - National industry, which returned 1.6% and 15.8% respectively [1][2]. Financial Performance - TDS has consistently exceeded earnings expectations, reporting an EPS of $0.01 against a consensus estimate of -$0.14 in its last earnings report on November 1, 2024 [2]. - For the current fiscal year, TDS is projected to have earnings of -$0.20 per share on revenues of $4.95 billion, while for the next fiscal year, earnings are expected to be -$0.15 per share on revenues of $4.77 billion, reflecting year-over-year changes of 81.27% and -3.6% respectively [3]. Valuation Metrics - TDS is currently at a 52-week high, prompting an analysis of valuation metrics to assess potential future stock performance [4]. - The Zacks Style Scores indicate TDS has a Value Score of B, a Growth Score of B, and a Momentum Score of F, resulting in a combined VGM Score of B [5][6]. Zacks Rank - TDS holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, aligning with the recommendation for investors to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, suggesting potential for TDS shares in the near future [7].