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InterDigital (IDCC) Registers a Bigger Fall Than the Market: Important Facts to Note
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InterDigital (IDCC - Free Report) closed the latest trading day at $103.75, indicating a -0.93% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.29%. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.3%.
The wireless research and development company's stock has climbed by 0.09% in the past month, falling short of the Computer and Technology sector's gain of 3.61% and the S&P 500's gain of 4.42%.
Analysts and investors alike will be keeping a close eye on the performance of InterDigital in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.24, signifying a 70.55% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $250.15 million, up 23.61% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.42 per share and revenue of $626.9 million, which would represent changes of -30.44% and +14.07%, respectively, from the prior year.
Any recent changes to analyst estimates for InterDigital should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, InterDigital is currently trading at a Forward P/E ratio of 16.31. This signifies a premium in comparison to the average Forward P/E of 14.96 for its industry.
We can additionally observe that IDCC currently boasts a PEG ratio of 0.94. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 182, placing it within the bottom 28% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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InterDigital (IDCC) Registers a Bigger Fall Than the Market: Important Facts to Note
InterDigital (IDCC - Free Report) closed the latest trading day at $103.75, indicating a -0.93% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.29%. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.3%.
The wireless research and development company's stock has climbed by 0.09% in the past month, falling short of the Computer and Technology sector's gain of 3.61% and the S&P 500's gain of 4.42%.
Analysts and investors alike will be keeping a close eye on the performance of InterDigital in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.24, signifying a 70.55% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $250.15 million, up 23.61% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.42 per share and revenue of $626.9 million, which would represent changes of -30.44% and +14.07%, respectively, from the prior year.
Any recent changes to analyst estimates for InterDigital should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, InterDigital is currently trading at a Forward P/E ratio of 16.31. This signifies a premium in comparison to the average Forward P/E of 14.96 for its industry.
We can additionally observe that IDCC currently boasts a PEG ratio of 0.94. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 182, placing it within the bottom 28% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.