United States Cellular Corporation (USM) Rating Increased to Strong-Buy at Zacks Investment Research

United States Cellular Corporation (NYSE:USM) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Monday. The brokerage presently has a $39.00 target price on the Wireless communications provider’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 14.74% from the stock’s current price.

According to Zacks, “U.S. Cellular posted mixed third-quarter 2017 results with massive subscriber gain. We believe the company’s succeeded in subscriber additions and churn management on the back of numerous strategic moves like introduction of a new billing system, continuous rollout of 4G LTE, enhancement of LTE handsets, completion of various spectrum transactions and monetization of non-strategic assets, to achieve its target. U.S. Cellular is optimistic about the growing demand for smartphones, which enjoy significant market penetration, supporting growth in data revenues. However, we remain concerned about the company’s operation in an intensely competitive and consolidated wireless market. Costs associated with network integration and construction of cell sites, aggressive pricing by larger rivals and fall in service revenues are other major risks. Over the past three months, the stock price declined 13.2% as against the industry's loss of 11.3%.”

Separately, BidaskClub upgraded shares of United States Cellular Corporation from a “sell” rating to a “hold” rating in a report on Saturday, August 5th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and one has issued a strong buy rating to the stock. The company presently has a consensus rating of “Hold” and an average price target of $36.67.

Shares of United States Cellular Corporation (USM) opened at $33.99 on Monday. United States Cellular Corporation has a fifty-two week low of $32.29 and a fifty-two week high of $46.01. The company has a debt-to-equity ratio of 0.48, a current ratio of 2.23 and a quick ratio of 2.08. The stock has a market cap of $2,892.96, a P/E ratio of 87.15, a P/E/G ratio of 165.80 and a beta of 0.79.

United States Cellular Corporation (NYSE:USM) last issued its earnings results on Wednesday, November 8th. The Wireless communications provider reported $0.11 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.01 by $0.10. United States Cellular Corporation had a negative net margin of 6.93% and a positive return on equity of 0.94%. The company had revenue of $963.00 million for the quarter, compared to analysts’ expectations of $968.80 million. During the same quarter last year, the company posted $0.20 earnings per share. The firm’s quarterly revenue was down 5.9% on a year-over-year basis. analysts expect that United States Cellular Corporation will post 0.2 EPS for the current fiscal year.

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Several institutional investors have recently modified their holdings of USM. Citigroup Inc. boosted its stake in shares of United States Cellular Corporation by 2,940.5% during the 2nd quarter. Citigroup Inc. now owns 3,375 shares of the Wireless communications provider’s stock worth $130,000 after acquiring an additional 3,264 shares during the last quarter. Sei Investments Co. boosted its stake in shares of United States Cellular Corporation by 22.6% during the 2nd quarter. Sei Investments Co. now owns 3,552 shares of the Wireless communications provider’s stock worth $136,000 after acquiring an additional 655 shares during the last quarter. Legal & General Group Plc boosted its stake in shares of United States Cellular Corporation by 183.9% during the 2nd quarter. Legal & General Group Plc now owns 6,280 shares of the Wireless communications provider’s stock worth $241,000 after acquiring an additional 4,068 shares during the last quarter. Public Employees Retirement System of Ohio boosted its stake in shares of United States Cellular Corporation by 8.3% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 6,710 shares of the Wireless communications provider’s stock worth $257,000 after acquiring an additional 515 shares during the last quarter. Finally, Parkwood LLC purchased a new position in shares of United States Cellular Corporation during the 2nd quarter worth $259,000. Institutional investors and hedge funds own 14.54% of the company’s stock.

United States Cellular Corporation Company Profile

United States Cellular Corporation (U.S. Cellular) is a provider of wireless telecommunication services. The Company’s wireless operating markets are in the United States. U.S. Cellular provides service to postpaid and prepaid customers from a range of demographic segments. The Company focuses on retail consumers, government and small-to-mid-size business customers in industries, such as construction, retail, professional services and real estate.

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