Trade-Ideas LLC identified Telephone and Data Systems ( TDS) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) 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 $25.1 million.
  • TDS has traded 820,090 shares today.
  • TDS traded in a range 236.4% of the normal price range with a price range of $2.44.
  • TDS traded above its daily resistance level (quality: 16 days, meaning that the stock is crossing a resistance level set by the last 16 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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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 2.4%. TDS has a PE ratio of 13. Currently there are 2 analysts that rate Telephone and Data Systems a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Telephone and Data Systems has been 602,200 shares per day over the past 30 days. Telephone and Data Systems has a market cap of $2.6 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 0.88 and a short float of 1.4% with 1.16 days to cover. Shares are down 12.8% year-to-date as of the close of trading on Friday.

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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 reasonable valuation levels. However, as a counter to these strengths, we find that the stock has had a decline in price during the past year.

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 144.0% when compared to the same quarter one year prior, rising from -$116.03 million to $51.08 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 14.3%. Since the same quarter one year prior, revenues slightly increased by 7.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • TELEPHONE & DATA SYSTEMS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TELEPHONE & DATA SYSTEMS INC swung to a loss, reporting -$1.26 versus $1.28 in the prior year. This year, the market expects an improvement in earnings ($1.62 versus -$1.26).
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. 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 has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • TDS is off 5.22% from its price level of one year ago, reflecting the general market trend and ignoring their higher earnings per share compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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