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InterDigital (IDCC) Stock Dips While Market Gains: Key Facts

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In the latest trading session, InterDigital (IDCC - Free Report) closed at $95.84, marking a -0.75% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.11%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 0.23%.

Prior to today's trading, shares of the wireless research and development company had lost 8.72% over the past month. This has lagged the Computer and Technology sector's gain of 1.54% and the S&P 500's gain of 1.5% in that time.

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 $3.37, signifying a 19.95% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $250.15 million, up 23.61% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.38 per share and a revenue of $626.9 million, representing changes of -9.21% and +14.07%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for InterDigital. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 4.78% higher within the past month. InterDigital currently has a Zacks Rank of #3 (Hold).

In terms of valuation, InterDigital is presently being traded at a Forward P/E ratio of 11.52. This represents a discount compared to its industry's average Forward P/E of 14.72.

Meanwhile, IDCC's PEG ratio is currently 0.66. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Wireless Equipment industry had an average PEG ratio of 1.42 as trading concluded yesterday.

The Wireless Equipment industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 181, positioning it in the bottom 29% 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.

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

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