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We recently published a list of Why These 15 Telecom Stocks Are Surging In 2025. In this article, we are going to take a look at where Telephone and Data Systems Inc (NYSE:TDS) stands against other telecom stocks that are surging in 2025.
The telecom sector has seen many ups and downs in the past few years. Post-COVID, these stocks declined even more due to the inflation wave and the subsequent interest rate hikes. Telecommunication companies usually have significant debt on their balance sheets due to infrastructure CapEx, and they were among the hardest hit.
However, rates are now slowly coming down, and these stocks are also starting to bottom out and turn a corner. Many telecom stocks are still profitable and pay dividends. Falling bond yields are making them even more attractive. It’s a good idea to keep tabs on which telecom stocks are spearheading the gains so far this year.
Methodology
For this article, I screened the best-performing telecom stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A well-dressed executive walking along a network of wires, demonstrating the power of a telecommunications company.
Telephone and Data Systems Inc (NYSE:TDS)
Number of Hedge Fund Holders In Q4 2024: 36
Telephone and Data Systems Inc (NYSE:TDS) provides wireless, broadband, video, and voice services to approximately 6 million connections nationwide.
The stock is up significantly so far in 2025 as the company’s subsidiary (U.S. Cellular) is selling portions of its business to other mobile operators for a total consideration of $1 billion.
Moreover, TDS Telecom reached a significant milestone by serving 50 percent of its service addresses with fiber. TDS also declared first-quarter 2025 dividends, including $0.04 per common share and substantial payouts for preferred shares.
The consensus price target of $53.5 implies 42.26% upside.
TDS stock is up 10.21% year-to-date.
Overall, TDS ranks 11th on our list of telecom stocks that are surging in 2025. While we acknowledge the potential of TDS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TDS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.