InterDigital Inc (IDCC): Today's Featured Telecommunications Winner

InterDigital ( IDCC) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day down 1.4%. By the end of trading, InterDigital rose 54 cents (2%) to $27.22 on light volume. Throughout the day, 661,457 shares of InterDigital exchanged hands as compared to its average daily volume of 926,700 shares. The stock ranged in a price between $26.30-$27.36 after having opened the day at $26.53 as compared to the previous trading day's close of $26.68. Other companies within the Telecommunications industry that increased today were: Globalstar Incorporated ( GSAT), up 27.9%, Maxcom Telecomunicaciones S.A.B. de C.V ( MXT), up 13.5%, Elephant Talk Communications ( ETAK), up 11%, and Alaska Communications Systems Group ( ALSK), up 10.6%.

InterDigital, Inc. engages in the design and development of technologies that enable and enhance wireless communications. The company offers technology solutions for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, and IEEE 802-related products and networks. InterDigital has a market cap of $1.19 billion and is part of the technology sector. The company has a P/E ratio of 16.1, equal to the average telecommunications industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 38.4% year to date as of the close of trading on Friday. Currently there are two analysts that rate InterDigital a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates InterDigital as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.

On the negative front, Ambient Corporation ( AMBT), down 25.2%, B Communications ( BCOM), down 15.6%, Powerwave Technologies ( PWAV), down 11%, and Internet Gold Golden Lines ( IGLD), down 9.9%, were all losers within the telecommunications industry with Verizon Communications ( VZ) being today's telecommunications industry loser.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the telecommunications industry could consider iShares Dow Jones US Telecom ( IYZ) while those bearish on the telecommunications industry could consider ProShares Ult Sht Telecommunication ( TLL).
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