InterDigital Inc (IDCC)

[FISH21049]

3 Wireless Stocks Set to Ride on Fiber Densification, 5G Rollout

Supriyo Bose ZACKS
Wed, October 26, 2022 at 8:05 AM

The Zacks Wireless Equipment industry appears well poised to gain from healthy demand trends amid fading supply chain adversities with the gradual revival in post-pandemic market conditions and a faster pace of 5G deployment. However, large-scale investments to support the transition to 5G and inflated raw material costs amid a challenging macroeconomic environment are likely to erode margins.

Nevertheless, Juniper Networks, Inc. JNPR, Viasat, Inc. VSAT and InterDigital, Inc. IDCC are likely to benefit in the long run from the increasing demand for state-of-the-art wireless products with a vast proliferation of IoT and a gradual shift to cloud services.

InterDigital: Headquartered in Wilmington, DE, InterDigital is a pioneer in advanced mobile technologies that enables wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term earnings growth expectation of 25% and delivered an earnings surprise of 81.9%, on average, in the trailing four quarters. Earnings estimates for the current year for this Zacks Rank #1 stock have moved up 7% since April 2021. InterDigital’s global footprint, diversified product portfolio and ability to penetrate in different markets are impressive. The addition of technologies related to sensors, user interface and video to its offerings are likely to drive considerable value, given the massive size of the market it licenses.