United States Cellular provides cellular telephone service throughout the United States.

From a fundamental viewpoint, the company seems undervalued relatively to its peers with an EV/Sales of 0.85. In the recent months, the earnings estimates for the next year are regularly revised upward by analysts. With an EPS estimated at USD 2.05 for this year and USD 1.98 for the next year, United States Cellular is currently paid 18.95 and 19.59 times the results.

The share has been penalized losing more than 12% in three days after its quarterly publication, which showed revenues above estimates but earnings per share below them. After this strong bearish acceleration the stock has taken benefit from the mid-term support of USD 36.7. In fact the share has retraced more than 38% of this movement. This recovery could continue towards USD 41.5 and for this reason we suggest a long position on the stock at current level, with a stop loss at USD 37.9