Can USM Stock Maintain its 92% Growth Pace Despite Divestiture?

Core Viewpoint - Shares of United States Cellular Corporation (USM) have increased by 91.7% over the past year, driven by strong performance in the wireless sector and rising earnings estimates for the current and next fiscal years, indicating significant growth potential [1] Group 1: Growth Drivers - U.S. Cellular is implementing strategies to boost subscriber growth and manage churn effectively, focusing on providing superior network quality and national coverage [2][8] - The company is expanding its market presence and adopting unlimited plans to increase average revenue per user, while also progressing with 5G deployment and network modernization [2][9] - Fixed wireless business is experiencing solid user engagement, with a 27% year-over-year growth in fixed wireless customers, reaching 145,000 [3] Group 2: Financial Strategies - U.S. Cellular is actively working to reduce its debt and improve liquidity by monetizing its spectrum holdings, including a $4.4 billion agreement with T-Mobile US Inc. to sell most of its wireless operations and 30% of its spectrum assets [4][5] - The divestiture will enhance liquidity and reduce debt, while also providing a steady revenue stream from T-Mobile as an anchor tenant on over 2,015 towers for 15 years [5] Group 3: Operational Initiatives - The company is focused on enhancing profitability through various initiatives, including a new billing system, continuous rollout of 4G LTE, and expansion of 5G device offerings [10] - U.S. Cellular aims to improve customer service and capitalize on business opportunities related to 5G and IoT, while managing data delivery costs effectively [10]