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Earnings Estimates Rising for InterDigital (IDCC): Will It Gain?
ZACKSยท 2025-05-13 17:21
Core Viewpoint - InterDigital (IDCC) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price gains [1][2]. Earnings Estimate Revisions - Analysts have shown increasing optimism regarding InterDigital's earnings prospects, leading to higher earnings estimates which are expected to positively influence the stock price [2]. - The consensus earnings estimate for the current quarter is $2.51 per share, reflecting a decrease of 45.08% from the previous year, but has increased by 66.89% over the last 30 days with no negative revisions [7]. - For the full year, the expected earnings are $11.75 per share, which is a decrease of 21.51% from the prior year, yet the consensus estimate has risen by 15.23% due to three upward revisions and no negative changes [8][9]. Zacks Rank and Performance - InterDigital has achieved a Zacks Rank of 2 (Buy), indicating favorable estimate revisions that suggest strong potential for stock performance [10]. - Historically, stocks with a Zacks Rank of 1 (Strong Buy) and 2 (Buy) have significantly outperformed the S&P 500, with Zacks 1 stocks averaging a 25% annual return since 2008 [3][10]. Recent Stock Performance - Over the past four weeks, InterDigital shares have increased by 7.8%, reflecting investor confidence in the company's earnings growth prospects driven by the positive estimate revisions [11].