Telephone and Data Systems (NYSE: TDS): Positioned for Gains Amid Deregulatory Shifts
Following President-elect Donald Trump’s recent election victory, the telecommunications sector, particularly companies like Telephone and Data Systems (TDS), is set to benefit from anticipated changes in regulatory policies. Trump’s administration is expected to adopt a more deregulatory approach, which could significantly impact net neutrality and antitrust enforcement within the tech and telecom industries.
This pro-business stance is likely to create a more favorable environment for TDS, especially with the expected reversal of current net neutrality rules. Brendan Carr, a Republican FCC Commissioner and a probable appointee for FCC Chairman, has expressed opposition to net neutrality, advocating for reduced regulatory oversight of broadband providers. This shift could pave the way for TDS to enhance its operations without the burden of stringent regulations.
TDS has demonstrated impressive performance metrics, reporting a 10% year-over-year increase in revenue to a record $4.89 billion in its recent third-quarter earnings. The company has achieved notable growth across its core segments: Digital Media, Document Cloud, and Experience Cloud, which saw increases of 11%, 15%, and 11%, respectively. The stock has advanced more than 76% year-to-date, with an even bigger run of around 109% over the past six months.
Currently, 67% of analysts rate TDS as a buy, with a median 12-month price target of $45.50, indicating a potential 42% upside from current levels. As TDS navigates this new regulatory landscape, it is well-positioned for further gains, making it a compelling addition to your watchlist.
