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InterDigital (IDCC) Declines More Than Market: Some Information for Investors
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InterDigital (IDCC - Free Report) ended the recent trading session at $79.76, demonstrating a -0.92% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.13%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.12%.
The wireless research and development company's stock has dropped by 2.18% in the past month, exceeding the Computer and Technology sector's loss of 5.08% and the S&P 500's loss of 5.53%.
Analysts and investors alike will be keeping a close eye on the performance of InterDigital in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.19, reflecting a 60.81% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $98.94 million, showing a 13.79% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $7.91 per share and a revenue of $503.81 million, demonstrating changes of +157.65% and +10.05%, respectively, from the preceding year.
Any recent changes to analyst estimates for InterDigital should also be noted by investors. Recent revisions tend to reflect the latest 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.15% lower. InterDigital is currently a Zacks Rank #4 (Sell).
In terms of valuation, InterDigital is currently trading at a Forward P/E ratio of 10.18. This indicates a discount in contrast to its industry's Forward P/E of 12.16.
It's also important to note that IDCC currently trades at a PEG ratio of 0.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless Equipment industry currently had an average PEG ratio of 1.29 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 103, this industry ranks in the top 41% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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InterDigital (IDCC) Declines More Than Market: Some Information for Investors
InterDigital (IDCC - Free Report) ended the recent trading session at $79.76, demonstrating a -0.92% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.13%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.12%.
The wireless research and development company's stock has dropped by 2.18% in the past month, exceeding the Computer and Technology sector's loss of 5.08% and the S&P 500's loss of 5.53%.
Analysts and investors alike will be keeping a close eye on the performance of InterDigital in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.19, reflecting a 60.81% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $98.94 million, showing a 13.79% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $7.91 per share and a revenue of $503.81 million, demonstrating changes of +157.65% and +10.05%, respectively, from the preceding year.
Any recent changes to analyst estimates for InterDigital should also be noted by investors. Recent revisions tend to reflect the latest 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.15% lower. InterDigital is currently a Zacks Rank #4 (Sell).
In terms of valuation, InterDigital is currently trading at a Forward P/E ratio of 10.18. This indicates a discount in contrast to its industry's Forward P/E of 12.16.
It's also important to note that IDCC currently trades at a PEG ratio of 0.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless Equipment industry currently had an average PEG ratio of 1.29 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 103, this industry ranks in the top 41% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.