IDCC Stock Appears to Be a Solid Investment Option Now: Here's Why

Shares of InterDigital, Inc. IDCC have surged 143.6% over the past year, driven by improved market demand across its portfolio on the back of a flexible business model and solid cash flow. Earnings estimates for the current and next fiscal have increased a stellar 167.9% and 65.3%, respectively, over the past year, implying robust inherent growth potential. With healthy fundamentals, this Zacks Rank #1 (Strong Buy) stock appears to be a solid investment option at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.Image Source: Zacks Investment ResearchKey Growth Drivers for IDCCA well-established global footprint, a diversified product portfolio and the ability to penetrate different markets are key growth drivers for InterDigital. Apart from a strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive considerable value, given the massive size of the market it offers licensing technologies to. InterDigital’s commitment to licensing its broad portfolio of technologies to wireless terminal equipment makers, which allows it to expand its core market capability, is laudable. It has leading companies, such as Huawei, Samsung, LG and Apple, under its licensing agreements. The company is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. InterDigital aims to become a leading designer and developer of technology solutions and innovations for the mobile industry, IoT and allied technology areas by leveraging its research and development capabilities, technological know-how and rich industry experience. At the same time, the company intends to enhance its licensing revenue base by adding licensees and expanding into adjacent technology areas that align with its intellectual property position.IDCC Bets Big on 6G ResearchInterDigital has collaborated with major academic institutions worldwide to expedite 6G research. Data traffic demand is growing exponentially worldwide, and 5G networks are required to support this high-capacity end-user throughput. The MIMO (Multiple-Input, Multiple-Output) technology leverages an active antenna system that consists of multiple antenna elements to augment the performance, reliability and overall efficiency of wireless communication systems. The 6G technology, which relies on Massive MIMO, will enable significantly higher data rates than its predecessors, leading to improved spectrum efficiency. IDCC has joined forces with IIT Kanpur, India, to accelerate critical advancements in MIMO systems, enabling 6G networks to cater to a diverse range of applications. It is also collaborating with the University of Surrey to drive research in unique areas, such as reconfigurable intelligent surfaces and integrated sensing and communication, to pave the way for the development of cutting-edge 6G technologies.IDCC Offers Solid OutlookFor 2025, with solid traction across the business, InterDigital expects revenues in the range of $790-850 million, up from the prior estimation of $660-$760 million. Adjusted EBITDA is currently forecasted at $551-$569 million, up from $400-$495 million previously estimated. IDCC expects non-GAAP earnings in the band of $14.17-14.77, up from $9.69-$12.92. The company is steadily advancing 6G development and placing strong emphasis on AI integration. With a long-term earnings growth expectation of 15%, it delivered an average earnings surprise of 54.3% in the trailing four quarters.Other Key PicksArista Networks, Inc. ANET, carrying a Zacks Rank #2 (Buy), is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experiences. Arista delivered an earnings surprise of 12.8%, on average, in the trailing four quarters. It is well-positioned for healthy growth in a data-driven cloud networking business with proactive platforms and predictive operations. Ubiquiti Inc. UI, sporting a Zacks Rank #1, offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. Its service-provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing, while enterprise product platforms provide wireless local area network infrastructure, video surveillance products and machine-to-machine communication components. In the trailing four quarters, it delivered an earnings surprise of 49.5%. Corning Incorporated GLW, sporting a Zacks Rank #1, is a leading innovator in the glass substrate industry. Designed to unlock opportunities for valuable synergies, Corning’s operating structure has been reorganized to align executive management and business teams around five Market-Access Platforms — Mobile Consumer Electronics, Optical Communications, Automotive, Life Sciences and Display. The company has a leadership position in each of these markets, which, along with focused marketing efforts, should drive growth. Corning has a long-term earnings growth expectation of 18.2%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Corning Incorporated (GLW): Free Stock Analysis Report InterDigital, Inc. (IDCC): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Ubiquiti Inc. (UI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks