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What Makes InterDigital (IDCC) a Promising Investment Option?
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Earnings estimate for the current fiscal for InterDigital, Inc. (IDCC - Free Report) has remained relatively steady over the past 30 days, while those for the next fiscal have moved up 32.6% since October 2019, implying robust inherent growth potential. With healthy fundamentals, this Zacks Rank #2 (Buy) stock appears to be a solid investment option at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Growth Drivers
Headquartered in Wilmington, DE, InterDigital is a pioneer in advanced mobile technologies, which enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G, and IEEE 802-related products and networks.
With the coronavirus pandemic leading to worldwide devastation, countless people have largely been confined to the safety of their homes to prevent exposure to the deadly virus. These have increased the dependency on wireless equipment providers like InterDigital, with digital sustainability becoming the norm of the day.
Additionally, more and more companies are offering the work-from-home option to employees to ensure their safety and wellbeing. Several firms are also providing a secure and connected workplace setup through quick onboarding and enablement services to support the seamless continuity of businesses and enable employees to fulfill their professional obligations. With more cities going under lockdowns and the administration asking people to opt for home quarantine, the remotely working trend is likely to be in vogue till the pandemic subsides. This, in turn, is likely to create new revenue-generating opportunities for the company, as humans become solely dependent on the digital platform to stay connected not only for their professional lives but also for online education, shopping, dining and entertainment.
InterDigital’s global footprint, diversified product portfolio and ability to penetrate different markets are impressive. Apart from a strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive considerable value, given the massive size of the market it offers licensing technologies to.
Moreover, InterDigital is optimizing strength in the core wireless licensing business and has taken steps to drive shareholder value through the buyout of the Technicolor licensing business. This has created significant new licensing opportunities in the video and consumer electronics markets. It has also acquired the Research & Innovation unit of Technicolor SA, a technology leader in the media and entertainment sector. The company is poised to gain from future growth opportunities, fueled by the 5G rollout.
The stock has a long-term earnings growth expectation of 15%. It delivered a positive earnings surprise of 62%, on average, in the trailing four quarters, beating estimates thrice and missing once. With a healthy dividend of 3%, this stock appears to be an enticing investment option for the volatile market.
Other Key Picks
Some other similar-ranked stocks in the broader industry are Cogent Communications Holdings, Inc. (CCOI - Free Report) , T-Mobile US, Inc. (TMUS - Free Report) and Telenav, Inc. .
Cogent has a long-term earnings growth expectation of 11.5%. It delivered a positive earnings surprise of 15.9%, on average, in the trailing four quarters.
T-Mobile has a long-term earnings growth expectation of 17.7%. It surpassed earnings estimates in the trailing four quarters, the average positive surprise being 19.5%.
Telenav delivered a positive earnings surprise of 77.1%, on average, in the trailing four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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What Makes InterDigital (IDCC) a Promising Investment Option?
Earnings estimate for the current fiscal for InterDigital, Inc. (IDCC - Free Report) has remained relatively steady over the past 30 days, while those for the next fiscal have moved up 32.6% since October 2019, implying robust inherent growth potential. With healthy fundamentals, this Zacks Rank #2 (Buy) stock appears to be a solid investment option at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Growth Drivers
Headquartered in Wilmington, DE, InterDigital is a pioneer in advanced mobile technologies, which enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G, and IEEE 802-related products and networks.
With the coronavirus pandemic leading to worldwide devastation, countless people have largely been confined to the safety of their homes to prevent exposure to the deadly virus. These have increased the dependency on wireless equipment providers like InterDigital, with digital sustainability becoming the norm of the day.
Additionally, more and more companies are offering the work-from-home option to employees to ensure their safety and wellbeing. Several firms are also providing a secure and connected workplace setup through quick onboarding and enablement services to support the seamless continuity of businesses and enable employees to fulfill their professional obligations. With more cities going under lockdowns and the administration asking people to opt for home quarantine, the remotely working trend is likely to be in vogue till the pandemic subsides. This, in turn, is likely to create new revenue-generating opportunities for the company, as humans become solely dependent on the digital platform to stay connected not only for their professional lives but also for online education, shopping, dining and entertainment.
InterDigital’s global footprint, diversified product portfolio and ability to penetrate different markets are impressive. Apart from a strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive considerable value, given the massive size of the market it offers licensing technologies to.
Moreover, InterDigital is optimizing strength in the core wireless licensing business and has taken steps to drive shareholder value through the buyout of the Technicolor licensing business. This has created significant new licensing opportunities in the video and consumer electronics markets. It has also acquired the Research & Innovation unit of Technicolor SA, a technology leader in the media and entertainment sector. The company is poised to gain from future growth opportunities, fueled by the 5G rollout.
The stock has a long-term earnings growth expectation of 15%. It delivered a positive earnings surprise of 62%, on average, in the trailing four quarters, beating estimates thrice and missing once. With a healthy dividend of 3%, this stock appears to be an enticing investment option for the volatile market.
Other Key Picks
Some other similar-ranked stocks in the broader industry are Cogent Communications Holdings, Inc. (CCOI - Free Report) , T-Mobile US, Inc. (TMUS - Free Report) and Telenav, Inc. .
Cogent has a long-term earnings growth expectation of 11.5%. It delivered a positive earnings surprise of 15.9%, on average, in the trailing four quarters.
T-Mobile has a long-term earnings growth expectation of 17.7%. It surpassed earnings estimates in the trailing four quarters, the average positive surprise being 19.5%.
Telenav delivered a positive earnings surprise of 77.1%, on average, in the trailing four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>