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InterDigital (IDCC) Stock Moves -0.06%: What You Should Know

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InterDigital (IDCC - Free Report) closed the most recent trading day at $95.78, moving -0.06% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 1.23%. Meanwhile, the Dow experienced a drop of 1.36%, and the technology-dominated Nasdaq saw a decrease of 1.4%.

The the stock of wireless research and development company has fallen by 10.69% in the past month, lagging the Computer and Technology sector's gain of 2.32% and the S&P 500's gain of 1.61%.

The investment community will be closely monitoring the performance of InterDigital in its forthcoming earnings report. It is anticipated that the company will report an EPS of $3.37, marking a 19.95% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $250.15 million, up 23.61% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.38 per share and a revenue of $626.9 million, indicating changes of -9.21% and +14.07%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for InterDigital. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 has shifted 4.78% upward. As of now, InterDigital holds a Zacks Rank of #3 (Hold).

Investors should also note InterDigital's current valuation metrics, including its Forward P/E ratio of 11.44. For comparison, its industry has an average Forward P/E of 14.79, which means InterDigital is trading at a discount to the group.

It is also worth noting that IDCC currently has a PEG ratio of 0.66. 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 Wireless Equipment industry had an average PEG ratio of 1.45 as trading concluded yesterday.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 179, finds itself in the bottom 29% 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.

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