Replies to post #432208 on InterDigital Inc (IDCC)

[Paullee]

InterDigital (IDCC) Moves to Strong Buy: Rationale Behind the Upgrade

Zacks Equity Research
Wed, January 31, 2024 at 12:00 PM EST


InterDigital (IDCC) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for InterDigital is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.