Has Telephone and Data Systems, Inc. (NYSE:TDS) Hit a Sweet Spot? Target Weight For Portfolio Skips Higher to 0.03530

When investors are recalibrating their portfolios they should take a look at current volatility levels and the target weight calculation of a given stock.  Telephone and Data Systems, Inc. (NYSE:TDS) has a current target weight (% as a decimal) of 0.03530.  This means that any balanced portfolio should not be holding more than this percentage of stock within their holdings group.  This number is based on recent stock volatility for the past 100 days.

Investors are constantly trying to make smarter decisions when it comes to dealing with the stock market. There are so many choices out there that it may become completely overwhelming at first. Starting with a baseline approach can help ease the burden of too much information. Developing the proper investment knowledge may take a lot of time and effort. Many investors may find out the hard way that shortcuts are not the answer to achieving long-term success in the stock market. Many people may occasionally get lucky and think they can do no wrong. Over time, this type of investor may see profits start to shrink and losses start to pile up. Many investors are bombarded with hot investment tips. It can be very tempting to take advice from someone who has actually made money in the markets previously. However, the old adage remains the same; past results may not indicate future results. Thinking that something that has worked in the past will no doubt work in the future can be a recipe for portfolio disaster. Individual investors who do their own thorough research should be much better positioned to make the proper decisions when the time comes. 

Telephone and Data Systems, Inc. (NYSE:TDS) of the Mobile Telecommunications sector closed the recent session at 36.300000 with a market value of $4098760.

Taking look at some key returns data we can note the following:

So how has Telephone and Data Systems, Inc. (NYSE:TDS) performed in terms of returns?  The ROIC quality score stands at 12.535974 whilet he actual return on invested capital holds at  0.038145.  Telephone and Data Systems, Inc.’s book to market ratio is at 1.108140 while the book to market mean difference is -0.26217. This indicator tells you how a company is currently valued in terms of Book to Market compared to its average Book to Market over the past 10 years. It’s important to note that BM is the inverse of the Price to book ratio. Thus a high BM ratio means a company is undervalued. Telephone and Data Systems, Inc. (NYSE:TDS) has seen free cash flow growth of 6.121584 and has a free cash flow score of 4.851321.  Free Cash Flow Score (FCF Score) is a value that is calculated by combining Free cash flow growth with free cash flow stability. It thus gives you a combined indication of free cash flow quality.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.227315 for Telephone and Data Systems, Inc. (NYSE:TDS).  The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

Making money in the stock market can be challenging, but it is not impossible. Accomplished investors typically have a well-rounded understanding of how markets function. Many successful investors have learned to be patient, disciplined, and ready to jump on any opportunity that arises. Securing higher returns on investment dollars may take some extra time and effort for those who do not have a lengthy background in the stock market. Although there are many types of investments out there, investing in stocks has traditionally provided the highest potential for returns. To realize consistent returns, investors typically have to maintain a steadfast approach and be willing to adapt to changing market environments over time.

In addition to Capex to PPE we can look at Cash Flow to Capex.  This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment needs.  Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. Telephone and Data Systems, Inc. (NYSE:TDS)’s Cash Flow to Capex stands at 1.317439.

Debt

In looking at some Debt ratios, Telephone and Data Systems, Inc. (NYSE:TDS) has a debt to equity ratio of 0.53765 and a Free Cash Flow to Debt ratio of 0.095414.  This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated.  In terms of Net Debt to EBIT, that ratio stands at 6.93467.  This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt.  The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio.  Telephone and Data Systems, Inc.’s ND to MV current stands at 0.336687. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Volatility comes with the territory when trading stocks. Individual stock prices can fluctuate dramatically, and returns can be largely varied. Because no stock is guaranteed to produce returns, there is a possibility that any stock could potentially lose value. Even though stock prices can shift from day to day, long-term investors are usually more concerned about price movements over an expanded period of time. Investors looking to minimize volatility risk may look to hold a larger number of diversified stocks in the portfolio. Even though market dips may have an impact on the entire portfolio, it is important to remember that it is just a normal part of investing in the stock market.

Near-Term Growth Drilldown

Now we’ll take a look at some key growth data as decimals. One year cash flow growth ratio is calculated on a trailing 12 months basis and is a one year percentage growth of a firm’s cash flow from operations.  This number stands at 0.26405 for Telephone and Data Systems, Inc. (NYSE:TDS).  The one year Growth EBIT ratio stands at 0.48507 and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at 0.09490 which is calculated similarly to EBIT Growth with just the addition of amortization.

Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at 0.23889.  The one year growth in Net Profit after Tax is -3.90000 and lastly sales growth was 0.01134.

50/200 Simple Moving Average Cross

Telephone and Data Systems, Inc. (NYSE:TDS) has a 1.14397 50/200 day moving average cross value. Cross SMA 50/200 (SMA = Simple Moving Average) and is calculated as follows:

Cross SMA 50/200 = 50 day moving average / 200day moving average. If the Cross SMA 50/200 value is greater than 1, it tell us that the 50 day moving average is above the 200 day moving average (golden cross), indicating an upward moving share price.

On the other hand if the Cross SMA 50/200 value is less than 1, this shows that the 50 day moving average is below the 200 day moving average (a death cross), and tells us that share prices has fallen recently and may continue to do so.

Many investors pay close attention to historical price movements when analyzing stocks. They may also take a deeper look into which sectors have been the best performers over the same time frame. Everyone seems to have an opinion on which way the market will move in the near-term. With the stock market still moving higher, many stock picks may still look really good. Reviewing specific stocks in the portfolio may help scout out the ones that may only be higher because of overall market levels. Predicting the next market shift is usually near impossible. Having the right stocks in the portfolio can help ease the investor’s mind no matter what the next few months brings in terms of volatility.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.