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Are Investors Undervaluing InterDigital (IDCC) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is InterDigital (IDCC - Free Report) . IDCC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 16.81 right now. For comparison, its industry sports an average P/E of 20.24. IDCC's Forward P/E has been as high as 28.31 and as low as 11.41, with a median of 16.06, all within the past year.
IDCC is also sporting a PEG ratio of 0.96. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. IDCC's industry currently sports an average PEG of 2.21. Over the past 52 weeks, IDCC's PEG has been as high as 2.48 and as low as 0.67, with a median of 0.95.
Investors should also recognize that IDCC has a P/B ratio of 4.74. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.29. Over the past 12 months, IDCC's P/B has been as high as 5.18 and as low as 2.90, with a median of 3.83.
These are just a handful of the figures considered in InterDigital's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that IDCC is an impressive value stock right now.
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Are Investors Undervaluing InterDigital (IDCC) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is InterDigital (IDCC - Free Report) . IDCC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 16.81 right now. For comparison, its industry sports an average P/E of 20.24. IDCC's Forward P/E has been as high as 28.31 and as low as 11.41, with a median of 16.06, all within the past year.
IDCC is also sporting a PEG ratio of 0.96. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. IDCC's industry currently sports an average PEG of 2.21. Over the past 52 weeks, IDCC's PEG has been as high as 2.48 and as low as 0.67, with a median of 0.95.
Investors should also recognize that IDCC has a P/B ratio of 4.74. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.29. Over the past 12 months, IDCC's P/B has been as high as 5.18 and as low as 2.90, with a median of 3.83.
These are just a handful of the figures considered in InterDigital's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that IDCC is an impressive value stock right now.