Many investors look for stocks to dip in price before buying, but the danger is that a stock that’s going down could drop even further, and there’s often a reason for the sell-off in the first place. Instead, what investors can do is focus on bullish indicators and buy while the stock is on its ascent.
United States Cellular Corp (NYSE:USM) saw a very bullish indicator recently when its 50-day moving average (MA) crossed above its 200-day MA. When a shorter-term MA moves across a longer-term average, that’s a very bullish crossover known as a ‘Golden Cross’ and it could trigger more buying and send the share price even higher. Year-to-date the share price is up more than 7%.
U.S. Cellular is coming off a strong quarter where it saw its revenues climb 4% while posting a strong profit of $273 million, which is well up from the $5 million loss that the company incurred a year ago.
Despite the recent rise in price, the stock is still trading below book value and that could mean that there’s still a lot more upside left for the share price. The company is expected to release earnings in early May and another strong quarter could help the stock build even more momentum.
Although U.S. Cellular operates one of the largest wireless networks in the U.S., with a presence in just 23 states there is still a lot of potential for the company to grow. An advantage of investing in a smaller company is that its operations are not saturated, and that’s what makes U.S. Cellular a great long-term buy.
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