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InterDigital (IDCC) Ascends But Remains Behind Market: Some Facts to Note
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InterDigital (IDCC - Free Report) ended the recent trading session at $104.15, demonstrating a +0.69% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.89% for the day. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 1.25%.
Shares of the wireless research and development company have depreciated by 6.61% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.77% and the S&P 500's gain of 3.56%.
Market participants will be closely following the financial results of InterDigital in its upcoming release. The company is forecasted to report an EPS of $1.24, showcasing a 70.55% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $250.15 million, showing a 23.61% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.42 per share and a revenue of $626.9 million, signifying shifts of -30.44% and +14.07%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for InterDigital. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. InterDigital currently has a Zacks Rank of #3 (Hold).
Looking at valuation, InterDigital is presently trading at a Forward P/E ratio of 16.11. This represents a premium compared to its industry's average Forward P/E of 14.58.
Also, we should mention that IDCC has a PEG ratio of 0.92. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Wireless Equipment industry stood at 1.39 at the close of the market yesterday.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 204, finds itself in the bottom 20% echelons of all 250+ industries.
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.
To follow IDCC in the coming trading sessions, be sure to utilize Zacks.com.
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InterDigital (IDCC) Ascends But Remains Behind Market: Some Facts to Note
InterDigital (IDCC - Free Report) ended the recent trading session at $104.15, demonstrating a +0.69% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.89% for the day. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 1.25%.
Shares of the wireless research and development company have depreciated by 6.61% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.77% and the S&P 500's gain of 3.56%.
Market participants will be closely following the financial results of InterDigital in its upcoming release. The company is forecasted to report an EPS of $1.24, showcasing a 70.55% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $250.15 million, showing a 23.61% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.42 per share and a revenue of $626.9 million, signifying shifts of -30.44% and +14.07%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for InterDigital. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. InterDigital currently has a Zacks Rank of #3 (Hold).
Looking at valuation, InterDigital is presently trading at a Forward P/E ratio of 16.11. This represents a premium compared to its industry's average Forward P/E of 14.58.
Also, we should mention that IDCC has a PEG ratio of 0.92. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Wireless Equipment industry stood at 1.39 at the close of the market yesterday.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 204, finds itself in the bottom 20% echelons of all 250+ industries.
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.
To follow IDCC in the coming trading sessions, be sure to utilize Zacks.com.