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InterDigital (IDCC) Rises But Trails Market: What Investors Should Know
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The latest trading session saw InterDigital (IDCC - Free Report) ending at $105.37, denoting a +0.21% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.53%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq increased by 0.19%.
Prior to today's trading, shares of the wireless research and development company had lost 4.77% over the past month. This has lagged the Computer and Technology sector's gain of 5.21% and the S&P 500's gain of 2.48% in that time.
Market participants will be closely following the financial results of InterDigital in its upcoming release. The company plans to announce its earnings on February 15, 2024. It is anticipated that the company will report an EPS of $1.21, marking a 12.04% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $104.31 million, indicating a 10.89% decrease compared to the same quarter of the previous year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. InterDigital currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that InterDigital has a Forward P/E ratio of 16.38 right now. This expresses a premium compared to the average Forward P/E of 14.27 of its industry.
Also, we should mention that IDCC has a PEG ratio of 0.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. IDCC's industry had an average PEG ratio of 1.49 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 40% 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) Rises But Trails Market: What Investors Should Know
The latest trading session saw InterDigital (IDCC - Free Report) ending at $105.37, denoting a +0.21% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.53%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq increased by 0.19%.
Prior to today's trading, shares of the wireless research and development company had lost 4.77% over the past month. This has lagged the Computer and Technology sector's gain of 5.21% and the S&P 500's gain of 2.48% in that time.
Market participants will be closely following the financial results of InterDigital in its upcoming release. The company plans to announce its earnings on February 15, 2024. It is anticipated that the company will report an EPS of $1.21, marking a 12.04% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $104.31 million, indicating a 10.89% decrease compared to the same quarter of the previous year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. InterDigital currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that InterDigital has a Forward P/E ratio of 16.38 right now. This expresses a premium compared to the average Forward P/E of 14.27 of its industry.
Also, we should mention that IDCC has a PEG ratio of 0.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. IDCC's industry had an average PEG ratio of 1.49 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 40% 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.