InterDigital, Inc. (IDCC) Soars to 52-Week High, Time to Cash Out?

Have you been paying attention to shares of InterDigital (IDCC)? Shares have been on the move with the stock up 33.2% over the past month. The stock hit a new 52-week high of $194.9 in the previous session. InterDigital has gained 78.6% since the start of the year compared to the 28.5% move for the Zacks Computer and Technology sector and the 28.1% return for the Zacks Wireless Equipment industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 31, 2024, InterDigital reported EPS of $1.63 versus consensus estimate of $0.76.For the current fiscal year, InterDigital is expected to post earnings of $15.22 per share on $859.46 million in revenues. This represents a 64.9% change in EPS on a 56.38% change in revenues. For the next fiscal year, the company is expected to earn $7.19 per share on $513.3 million in revenues. This represents a year-over-year change of -52.76% and -40.28%, respectively.Valuation MetricsInterDigital may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.InterDigital has a Value Score of B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 12.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.4X. On a trailing cash flow basis, the stock currently trades at 16.2X versus its peer group's average of 12.3X. Additionally, the stock has a PEG ratio of 0.73. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, InterDigital currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if InterDigital meets the list of requirements. Thus, it seems as though InterDigital shares could have potential in the weeks and months to come.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 InterDigital, Inc. (IDCC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks