(USM) United States Cellular - Ratings and Ratios

United States Cellular Corporation (NYSE:USM) is a leading wireless telecommunications service provider in the United States, offering a comprehensive suite of wireless services including voice, messaging, and data. The companys product portfolio extends to a wide range of wireless devices such as handsets, tablets, mobile hotspots, home phones, and routers. Additionally, they provide wireless essentials like cases, screen protectors, chargers, and memory cards, along with consumer electronics including Bluetooth audio devices and Wi-Fi enabled cameras. USM also engages in the sale of wireless devices to agents and third-party distributors for resale, offering customers the option to purchase devices and accessories under installment contracts. Furthermore, the company provides wireless roaming services, tower rental services, and operates as a wireless eligible telecommunications carrier. Their customer base encompasses consumer, business, and government sectors.

The company distributes its products and services through a diverse network of retail sales, direct sales, telesales, e-commerce platforms, resellers, independent agents, and third-party national retailers. Headquartered in Chicago, Illinois, United States Cellular Corporation was incorporated in 1983 and operates as a subsidiary of Telephone and Data Systems, Inc. The company is known for its robust network coverage and commitment to technological advancements, including the rollout of 5G services, enhancing connectivity across its operational regions. USM has received recognitions for network quality and customer service, underscoring its focus on reliability and user experience. Their approach to customer service includes tailored plans and community engagement initiatives, fostering strong customer relationships.

Based on the provided technical and fundamental data, the 3-month forecast for United States Cellular Corporation (USM) suggests potential upside with cautious optimism. Technically, the stock is trading at $67.35, slightly above its 20-day and 50-day moving averages of $66.91 and $66.35, respectively, but below the 200-day moving average of $60.83. This configuration could indicate a bullish short-term trend, with potential resistance at the 200-day SMA. The Average True Range (ATR) of 2.14 signals moderate volatility, suggesting price movements could remain contained within a range of $65 to $70 over the next three months.

Fundamentally, the companys forward P/E ratio of 33.67 indicates high expectations for future earnings growth, though this is tempered by the negative Return on Equity (RoE) of -1.14, which may signal underlying profitability challenges. The Price-to-Book (P/B) ratio of 1.23 and Price-to-Sales (P/S) ratio of 1.49 suggest the market is valuing the companys assets and revenue generation capabilities reasonably. However, investors should monitor the companys ability to improve profitability and cash flows to justify its valuations. Overall, the stock is expected to trade range-bound with a potential bullish bias, targeting the $70 level, supported by its operational strengths and network investments, while being mindful of the risks associated with its high valuation multiples and negative RoE.