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What Makes U.S. Cellular (USM) a Promising Pick for Investors?

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Zacks Equity Research
·3 min read
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Shares of United States Cellular Corporation USM have lost 10.6% in the past year compared with 2.3% decline of the industry. The stock currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A.



You can see the complete list of today’s Zacks #1 Rank stocks here.

This Chicago, IL-based company delivered a trailing four-quarter positive earnings surprise of 231.1%, on average. The Zacks Consensus Estimate for its next-year earnings has been revised 17.7% upward over the past seven days.

Growth Drivers

A subsidiary of Telephone and Data Systems TDS, U.S. Cellular is the fourth largest full-service wireless carrier in the United States. It provides a range of wireless products and services, and a high-quality network to increase the competitiveness of local businesses and improve the efficiency of government operations.

The company is well positioned to support the investments that are required for network enhancements, including the deployment of 5G. U.S. Cellular continues with its network modernization program, adding capacity and speed while launching 5G services commercially and VoLTE in the remaining markets.

U.S. Cellular has been building a stronger network with the 5G technology. It continues to strengthen its customer base and identify new revenue streams while reducing expenses across the business. It continues to expand its 5G device offering for consumers and businesses.

The company is on a multi-year path to bring 5G to as many customers as possible, with new markets on the horizon. Its 5G network covers select locations of California, Illinois, Iowa, Maine, Maryland, Missouri, Nebraska, New Hampshire, North Carolina, Oklahoma, Oregon, Tennessee, Texas, Virginia, Washington, West Virginia and Wisconsin.

U.S. Cellular has been expanding its footprint while adopting unlimited plans to enhance average revenue per user. It has made progress on strategic objectives, growing customer base by increasing handset connections and customer loyalty to improve revenues and profitability. It is working toward long-term growth and sustainability.

Other Key Choices

Some other top-ranked stocks in the broader industry are Corning GLW and Arista Networks ANET, each carrying a Zacks Rank #2 (Buy).

Corning delivered a trailing four-quarter positive earnings surprise of 40.7%, on average.

Arista delivered a trailing four-quarter positive earnings surprise of 9.5%, on average.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Corning Incorporated (GLW) : Free Stock Analysis Report
 
Telephone and Data Systems, Inc. (TDS) : Free Stock Analysis Report
 
United States Cellular Corporation (USM) : Free Stock Analysis Report
 
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
 
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Zacks Investment Research