Trade-Ideas LLC identified Telephone and Data Systems ( TDS) as a strong and under the radar 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 $15.7 million.
  • TDS has traded 21.865700000000000358113538823090493679046630859375 options contracts today.
  • TDS is making at least a new 3-day high.
  • TDS has a PE ratio of 96.
  • TDS is mentioned 0.61 times per day on StockTwits.
  • TDS has not yet been mentioned on StockTwits today.
  • TDS is currently in the upper 20% of its 1-year range.
  • TDS is in the upper 35% of its 20-day range.
  • TDS is in the upper 45% of its 5-day range.
  • TDS is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on TDS:

Telephone and Data Systems, Inc., a telecommunications company, provides wireless, wireline, cable, and hosted and managed services in the United States. The stock currently has a dividend yield of 1.9%. TDS has a PE ratio of 96. 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 485,200 shares per day over the past 30 days. Telephone and Data Systems has a market cap of $3.0 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 0.55 and a short float of 1.1% with 1.69 days to cover. Shares are up 17% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Telephone and Data Systems as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Wireless Telecommunication Services industry. The net income increased by 204.6% when compared to the same quarter one year prior, rising from -$22.04 million to $23.05 million.
  • The revenue growth significantly trails the industry average of 55.0%. Since the same quarter one year prior, revenues slightly increased by 3.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Wireless Telecommunication Services industry and the overall market on the basis of return on equity, TELEPHONE & DATA SYSTEMS INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Net operating cash flow has decreased to $183.13 million or 13.08% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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