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Here's Why U.S. Cellular (USM) is a Solid Pick for Investors

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·3 min read
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Shares of United States Cellular Corporation USM have gained 14.4% in the past six months against no movement of the industry. Currently, the stock carries a Zacks Rank #2 (Buy) and has a VGM Score of B.



This Chicago, IL-based company delivered a trailing four-quarter earnings surprise of 123.9%, on average. The Zacks Consensus Estimate for its current-year earnings has been revised 1% upward over the past 30 days.

Growth Drivers

With 5 million connections in 21 states, U.S. Cellular provides a range of wireless products and services and high-quality network to customers. It is a subsidiary of Telephone and Data Systems, Inc. TDS.

The company is deploying 5G on 600 MHz spectrum and plans to expand it with mid- and high-band spectrum. It aims to provide excellent customer service while ramping up business opportunities that use 5G and IoT.

U.S. Cellular has been expanding its 5G device offering for consumers and businesses. Its investments in 5G and network modernization programs are on track as it continues to meet customers’ expectations. Of late, the company is benefiting from strong postpaid and prepaid handset additions.

Furthermore, U.S. Cellular is working on bridging the digital divide so that people have access to high-quality and affordable broadband services. It is focused on expanding its footprint while adopting unlimited plans to enhance average revenue per user.

The company has made progress on strategic objectives — growing customer base by increasing handset connections and customer loyalty to boost revenues and profitability. It is working toward long-term growth and sustainability. We believe that the stock has more upside left.

Other Key Choices

A couple of other top-ranked stocks that investors may consider are Cambium Networks Corporation CMBM and Altice USA, Inc. ATUS, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cambium delivered a trailing four-quarter earnings surprise of 46.5%, on average.

Altice delivered a trailing four-quarter earnings surprise of 61.5%, on average.

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

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Telephone and Data Systems, Inc. (TDS) : Free Stock Analysis Report

United States Cellular Corporation (USM) : Free Stock Analysis Report

Altice USA, Inc. (ATUS) : Free Stock Analysis Report

Cambium Networks Corporation (CMBM) : Free Stock Analysis Report

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Zacks Investment Research