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Is InterDigital (IDCC) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
InterDigital (IDCC - Free Report) is a stock many investors are watching right now. IDCC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 13.15, which compares to its industry's average of 16.55. IDCC's Forward P/E has been as high as 28.31 and as low as 11.41, with a median of 16.86, all within the past year.
We should also highlight that IDCC has a P/B ratio of 3.86. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.90. Within the past 52 weeks, IDCC's P/B has been as high as 4.38 and as low as 2.01, with a median of 3.40.
Finally, investors will want to recognize that IDCC has a P/CF ratio of 8.32. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.76. Within the past 12 months, IDCC's P/CF has been as high as 13.01 and as low as 7.27, with a median of 9.32.
If you're looking for another solid Wireless Equipment value stock, take a look at Viasat (VSAT - Free Report) . VSAT is a # 2 (Buy) stock with a Value score of A.
Viasat is trading at a forward earnings multiple of 19.97 at the moment, with a PEG ratio of 1.27. This compares to its industry's average P/E of 16.55 and average PEG ratio of 3.05.
VSAT's Forward P/E has been as high as 40.45 and as low as -417.56, with a median of -17.55. During the same time period, its PEG ratio has been as high as 13.42, as low as 1.18, with a median of 9.91.
Viasat sports a P/B ratio of 0.24 as well; this compares to its industry's price-to-book ratio of 4.90. In the past 52 weeks, VSAT's P/B has been as high as 1.09, as low as 0.20, with a median of 0.79.
Value investors will likely look at more than just these metrics, but the above data helps show that InterDigital and Viasat are likely undervalued currently. And when considering the strength of its earnings outlook, IDCC and VSAT sticks out as one of the market's strongest value stocks.
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Is InterDigital (IDCC) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
InterDigital (IDCC - Free Report) is a stock many investors are watching right now. IDCC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 13.15, which compares to its industry's average of 16.55. IDCC's Forward P/E has been as high as 28.31 and as low as 11.41, with a median of 16.86, all within the past year.
We should also highlight that IDCC has a P/B ratio of 3.86. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.90. Within the past 52 weeks, IDCC's P/B has been as high as 4.38 and as low as 2.01, with a median of 3.40.
Finally, investors will want to recognize that IDCC has a P/CF ratio of 8.32. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.76. Within the past 12 months, IDCC's P/CF has been as high as 13.01 and as low as 7.27, with a median of 9.32.
If you're looking for another solid Wireless Equipment value stock, take a look at Viasat (VSAT - Free Report) . VSAT is a # 2 (Buy) stock with a Value score of A.
Viasat is trading at a forward earnings multiple of 19.97 at the moment, with a PEG ratio of 1.27. This compares to its industry's average P/E of 16.55 and average PEG ratio of 3.05.
VSAT's Forward P/E has been as high as 40.45 and as low as -417.56, with a median of -17.55. During the same time period, its PEG ratio has been as high as 13.42, as low as 1.18, with a median of 9.91.
Viasat sports a P/B ratio of 0.24 as well; this compares to its industry's price-to-book ratio of 4.90. In the past 52 weeks, VSAT's P/B has been as high as 1.09, as low as 0.20, with a median of 0.79.
Value investors will likely look at more than just these metrics, but the above data helps show that InterDigital and Viasat are likely undervalued currently. And when considering the strength of its earnings outlook, IDCC and VSAT sticks out as one of the market's strongest value stocks.