InterDigital (IDCC) closed at $82.20 in the latest trading session, experiencing a slight decrease of -0.9% compared to the previous day. While the stock performed better than the S&P 500’s daily loss of 1.22%, it was not immune to the overall market decline. The Dow lost 0.83%, and the tech-heavy Nasdaq lost 1.56%.
Despite the recent dip, InterDigital’s shares have gained 1.47% over the past month, outperforming both the Computer and Technology sector’s 2.03% growth and the S&P 500’s 0.54% gain. This positive performance has piqued the interest of Wall Street, particularly as the company approaches its next earnings report.
Analysts are projecting that InterDigital will report earnings of $1.19 per share, demonstrating a substantial year-over-year growth of 60.81%. The consensus estimate also forecasts quarterly revenue of $98.94 million, a decrease of 13.79% compared to the same period last year.
Looking at the company’s full-year estimates, analysts are optimistic, with projected earnings of $7.91 per share and revenue of $503.81 million. These estimates indicate a year-over-year increase of 157.65% and 10.05%, respectively.
Investors should pay attention to any recent changes in analyst estimates for InterDigital, as these revisions can reflect shifting business trends. Positive estimate revisions often indicate optimism about the company’s outlook and can have an impact on the stock’s price momentum.
To evaluate the potential of InterDigital, investors can utilize the Zacks Rank, a rating system that considers these estimate changes. Currently, InterDigital holds a Zacks Rank of #3 (Hold). The Zacks Rank system has a strong track record, with #1 (Strong Buy) stocks delivering an average annual return of +25% since 1988.
In terms of valuation, InterDigital has a favorable Forward P/E ratio of 10.49, suggesting that the stock is trading at a discount compared to its industry average of 13.72. Furthermore, the PEG ratio of 0.75 indicates that the stock has solid earnings growth potential.
InterDigital operates in the Wireless Equipment industry, which is part of the Computer and Technology sector. The industry has a Zacks Industry Rank of 94, placing it in the top 38% of all industries analyzed. Industries ranked in the top 50% have historically outperformed those in the bottom half by a factor of 2 to 1.
To stay informed about InterDigital’s performance in the upcoming trading sessions, investors can visit Zacks.com. It is also possible to access Zacks Investment Research’s latest recommendations, including the “7 Best Stocks for the Next 30 Days” report.
Definitions:
– S&P 500: A stock market index that measures the performance of 500 large companies listed on stock exchanges in the United States.
– Dow: Abbreviation for the Dow Jones Industrial Average, a stock market index composed of 30 large publicly traded companies in the United States.
– Nasdaq: A stock exchange in the United States that mainly lists technology, biotechnology, and pharmaceutical companies.
– Earnings: The profit that a company generates during a specific period.
– Revenue: The total amount of money generated by a company’s business activities.
– Zacks Rank: A rating system that assigns a rank to stocks based on their earnings estimates and other factors.
– P/E ratio: Price-to-Earnings ratio, which is calculated by dividing a company’s stock price by its earnings per share.
– PEG ratio: Price/Earnings-to-Growth ratio, which is calculated by dividing a company’s P/E ratio by its projected earnings growth rate.
– Zacks Industry Rank: A ranking system that measures the strength of individual industry groups based on the average Zacks Rank of the individual stocks within them.
– Zacks Investment Research: A financial research firm providing analysis and recommendations on stocks and funds.
Sources:
– Zacks Investment Research
– InterDigital, Inc. (IDCC) : Free Stock Analysis Report