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InterDigital (IDCC) Increases Yet Falls Behind Market: What Investors Need to Know
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InterDigital (IDCC - Free Report) closed at $80.50 in the latest trading session, marking a +0.44% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.81%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, added 1.35%.
Coming into today, shares of the wireless research and development company had lost 3.76% in the past month. In that same time, the Computer and Technology sector lost 6.4%, while the S&P 500 lost 6.19%.
Market participants will be closely following the financial results of InterDigital in its upcoming release. In that report, analysts expect InterDigital to post earnings of $1.19 per share. This would mark year-over-year growth of 60.81%. Alongside, our most recent consensus estimate is anticipating revenue of $98.94 million, indicating a 13.79% downward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.91 per share and a revenue of $503.81 million, indicating changes of +157.65% and +10.05%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for InterDigital. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. InterDigital currently has a Zacks Rank of #4 (Sell).
Looking at valuation, InterDigital is presently trading at a Forward P/E ratio of 10.13. This expresses a discount compared to the average Forward P/E of 12.39 of its industry.
We can additionally observe that IDCC currently boasts a PEG ratio of 0.73. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Wireless Equipment industry held an average PEG ratio of 1.27.
The Wireless Equipment industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 106, positioning it in the top 43% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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InterDigital (IDCC) Increases Yet Falls Behind Market: What Investors Need to Know
InterDigital (IDCC - Free Report) closed at $80.50 in the latest trading session, marking a +0.44% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.81%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, added 1.35%.
Coming into today, shares of the wireless research and development company had lost 3.76% in the past month. In that same time, the Computer and Technology sector lost 6.4%, while the S&P 500 lost 6.19%.
Market participants will be closely following the financial results of InterDigital in its upcoming release. In that report, analysts expect InterDigital to post earnings of $1.19 per share. This would mark year-over-year growth of 60.81%. Alongside, our most recent consensus estimate is anticipating revenue of $98.94 million, indicating a 13.79% downward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.91 per share and a revenue of $503.81 million, indicating changes of +157.65% and +10.05%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for InterDigital. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. InterDigital currently has a Zacks Rank of #4 (Sell).
Looking at valuation, InterDigital is presently trading at a Forward P/E ratio of 10.13. This expresses a discount compared to the average Forward P/E of 12.39 of its industry.
We can additionally observe that IDCC currently boasts a PEG ratio of 0.73. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Wireless Equipment industry held an average PEG ratio of 1.27.
The Wireless Equipment industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 106, positioning it in the top 43% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.