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Trade-Ideas LLC identified
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Telephone and Data Systems as such a stock due to the following factors:
- TDS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.5 million.
- TDS has traded 675,331 shares today.
- TDS is down 3.1% today.
- TDS was up 8.9% yesterday.
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More details on TDS:
Telephone and Data Systems, Inc., a diversified telecommunications service company, provides wireless and wireline telecommunications services in the United States. The company operates in three segments: Wireline, Cable, and Hosted and Managed Services. The stock currently has a dividend yield of 2.3%. Currently there are 4 analysts that rate Telephone and Data Systems a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Telephone and Data Systems has been 627,800 shares per day over the past 30 days. Telephone and Data Systems has a market cap of $2.4 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 0.96 and a short float of 1.5% with 1.85 days to cover. Shares are down 9% year-to-date as of the close of trading on Tuesday.
rates Telephone and Data Systems as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 1.8%. Since the same quarter one year prior, revenues slightly increased by 0.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.44, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for TELEPHONE & DATA SYSTEMS INC is rather high; currently it is at 51.51%. Regardless of TDS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TDS's net profit margin of -1.78% significantly underperformed when compared to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Wireless Telecommunication Services industry. The net income has significantly decreased by 114.1% when compared to the same quarter one year ago, falling from $156.08 million to -$22.04 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Wireless Telecommunication Services industry and the overall market, TELEPHONE & DATA SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Telephone and Data Systems Ratings Report.