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InterDigital (IDCC) Falls More Steeply Than Broader Market: What Investors Need to Know
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The latest trading session saw InterDigital (IDCC - Free Report) ending at $104.87, denoting a -0.6% adjustment from its last day's close. This change lagged the S&P 500's 0.15% loss on the day. On the other hand, the Dow registered a loss of 0.42%, and the technology-centric Nasdaq increased by 0.09%.
Heading into today, shares of the wireless research and development company had lost 1.26% over the past month, lagging the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 3.5% in that time.
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 $1.21, reflecting a 12.04% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $104.01 million, indicating a 11.15% decline compared to the corresponding quarter of the prior year.
Investors should also note any recent changes to analyst estimates for InterDigital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. InterDigital is currently a Zacks Rank #2 (Buy).
In terms of valuation, InterDigital is currently trading at a Forward P/E ratio of 16.43. For comparison, its industry has an average Forward P/E of 13.13, which means InterDigital is trading at a premium to the group.
It is also worth noting that IDCC currently has a PEG ratio of 0.94. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Wireless Equipment industry had 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 91, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow IDCC in the coming trading sessions, be sure to utilize Zacks.com.
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InterDigital (IDCC) Falls More Steeply Than Broader Market: What Investors Need to Know
The latest trading session saw InterDigital (IDCC - Free Report) ending at $104.87, denoting a -0.6% adjustment from its last day's close. This change lagged the S&P 500's 0.15% loss on the day. On the other hand, the Dow registered a loss of 0.42%, and the technology-centric Nasdaq increased by 0.09%.
Heading into today, shares of the wireless research and development company had lost 1.26% over the past month, lagging the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 3.5% in that time.
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 $1.21, reflecting a 12.04% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $104.01 million, indicating a 11.15% decline compared to the corresponding quarter of the prior year.
Investors should also note any recent changes to analyst estimates for InterDigital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. InterDigital is currently a Zacks Rank #2 (Buy).
In terms of valuation, InterDigital is currently trading at a Forward P/E ratio of 16.43. For comparison, its industry has an average Forward P/E of 13.13, which means InterDigital is trading at a premium to the group.
It is also worth noting that IDCC currently has a PEG ratio of 0.94. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Wireless Equipment industry had 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 91, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow IDCC in the coming trading sessions, be sure to utilize Zacks.com.