InterDigital (IDCC) Stock Moves -0.29%: What You Should Know
InterDigital (IDCC) closed the latest trading day at $105.25, indicating a -0.29% change from the previous session's end. This move was narrower than the S&P 500's daily loss of 0.65%. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq lost 1.16%.
Heading into today, shares of the wireless research and development company had gained 1.53% over the past month, lagging the Computer and Technology sector's gain of 3.18% and the S&P 500's gain of 3.4% in that time.
The upcoming earnings release of InterDigital will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.24, reflecting a 70.55% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $250.15 million, indicating a 23.61% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.42 per share and revenue of $627.05 million, indicating changes of -30.44% and +14.09%, respectively, compared to the previous year.
Any recent changes to analyst estimates for InterDigital should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. InterDigital is holding a Zacks Rank of #2 (Buy) right now.
In the context of valuation, InterDigital is at present trading with a Forward P/E ratio of 16.44. This expresses a premium compared to the average Forward P/E of 14.9 of its industry.
Meanwhile, IDCC's PEG ratio is currently 0.94. 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 currently had an average PEG ratio of 1.48 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 192, finds itself in the bottom 24% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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InterDigital, Inc. (IDCC) : Free Stock Analysis Report
