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InterDigital (IDCC) Outperforms Broader Market: What You Need to Know

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InterDigital (IDCC - Free Report) closed the most recent trading day at $106.46, moving +0.52% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.11%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.12%.

The wireless research and development company's shares have seen a decrease of 0.69% over the last month, not keeping up with the Computer and Technology sector's gain of 3.59% and the S&P 500's gain of 3.55%.

The upcoming earnings release of InterDigital will be of great interest to investors. The company is expected to report EPS of $3.37, down 19.95% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $250.15 million, up 23.61% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.38 per share and revenue of $626.9 million, which would represent changes of -9.21% and +14.07%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for InterDigital. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 4.78% higher. InterDigital presently features a Zacks Rank of #3 (Hold).

Investors should also note InterDigital's current valuation metrics, including its Forward P/E ratio of 12.64. This expresses a discount compared to the average Forward P/E of 12.91 of its industry.

It's also important to note that IDCC currently trades at a PEG ratio of 0.72. 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. This industry, currently bearing a Zacks Industry Rank of 161, finds itself in the bottom 37% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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