Back to top

Image: Bigstock

InterDigital (IDCC) Rises Higher Than Market: Key Facts

Read MoreHide Full Article

In the latest market close, InterDigital (IDCC - Free Report) reached $78.37, with a +1.36% movement compared to the previous day. This change outpaced the S&P 500's 0.73% gain on the day. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.93%.

Shares of the wireless research and development company have depreciated by 4.13% over the course of the past month, underperforming the Computer and Technology sector's loss of 0.22% and the S&P 500's loss of 2.29%.

The investment community will be closely monitoring the performance of InterDigital in its forthcoming earnings report. The company is scheduled to release its earnings on November 2, 2023. It is anticipated that the company will report an EPS of $1.19, marking a 60.81% rise compared to the same quarter of the previous 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.

IDCC's full-year Zacks Consensus Estimates are calling for earnings of $7.91 per share and revenue of $503.81 million. These results would represent year-over-year changes of +157.65% and +10.05%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for InterDigital. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. InterDigital currently has a Zacks Rank of #4 (Sell).

With respect to valuation, InterDigital is currently being traded at a Forward P/E ratio of 9.77. This expresses a discount compared to the average Forward P/E of 11.24 of its industry.

It is also worth noting that IDCC currently has a PEG ratio of 0.7. 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. By the end of yesterday's trading, the Wireless Equipment industry had an average PEG ratio of 1.15.

The Wireless Equipment industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 171, this industry ranks in the bottom 33% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


InterDigital, Inc. (IDCC) - free report >>

Published in