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InterDigital (IDCC) Gains But Lags Market: What You Should Know
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In the latest market close, InterDigital (IDCC - Free Report) reached $81.80, with a +0.26% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.43%. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.71%.
The the stock of wireless research and development company has risen by 1.68% in the past month, leading the Computer and Technology sector's loss of 1.56% and the S&P 500's loss of 2.1%.
The upcoming earnings release of InterDigital will be of great interest to investors. On that day, InterDigital is projected to report earnings of $1.19 per share, which would represent year-over-year growth of 60.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $98.94 million, down 13.79% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.91 per share and a revenue of $503.81 million, representing changes of +157.65% and +10.05%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for InterDigital. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. InterDigital presently features a Zacks Rank of #4 (Sell).
From a valuation perspective, InterDigital is currently exchanging hands at a Forward P/E ratio of 10.31. This expresses a discount compared to the average Forward P/E of 11.9 of its industry.
Investors should also note that IDCC has a PEG ratio of 0.74 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Wireless Equipment industry held an average PEG ratio of 1.29.
The Wireless Equipment industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 108, placing it within the top 43% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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InterDigital (IDCC) Gains But Lags Market: What You Should Know
In the latest market close, InterDigital (IDCC - Free Report) reached $81.80, with a +0.26% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.43%. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.71%.
The the stock of wireless research and development company has risen by 1.68% in the past month, leading the Computer and Technology sector's loss of 1.56% and the S&P 500's loss of 2.1%.
The upcoming earnings release of InterDigital will be of great interest to investors. On that day, InterDigital is projected to report earnings of $1.19 per share, which would represent year-over-year growth of 60.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $98.94 million, down 13.79% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.91 per share and a revenue of $503.81 million, representing changes of +157.65% and +10.05%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for InterDigital. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. InterDigital presently features a Zacks Rank of #4 (Sell).
From a valuation perspective, InterDigital is currently exchanging hands at a Forward P/E ratio of 10.31. This expresses a discount compared to the average Forward P/E of 11.9 of its industry.
Investors should also note that IDCC has a PEG ratio of 0.74 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Wireless Equipment industry held an average PEG ratio of 1.29.
The Wireless Equipment industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 108, placing it within the top 43% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.