4-Star Stocks Poised to Pop: InterDigital

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, wireless technology developer InterDigital (NAS: IDCC) has earned a respected four-star ranking.

With that in mind, let's take a closer look at InterDigital's business and see what CAPS investors are saying about the stock right now.

InterDigital facts

Headquarters (founded)

King of Prussia, Pa. (1972)

Market Cap

$1.2 billion

Industry

Communications equipment

Trailing-12-Month Revenue

$292.6 million

Management

CEO William Merritt (since 2005)
CFO Scott McQuilkin (since 2007)

Return on Equity (average, past 3 years)

51.5%

Cash/Debt

$616.0 million / $194.5 million

Dividend Yield

1.5%

Competitors

Alcatel-Lucent
Freescale Semiconductor
Qualcomm


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 1,297 members who have rated InterDigital believe the stock will outperform the S&P 500 going forward.

Just last month, one of those bulls, jackycheng, highlighted the slumping stock price as a possible bargain opportunity: "Though the business is slowing down and the company is lacking of management skill to monitor the recurring incomes, it would not be a bad choice to buy it now after the great drop as the [patent portfolio is likely] worth more than the current market value."

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, InterDigital may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Discover the Next Rule-Breaking Multibagger," which uncovers another small-cap growth play with big potential. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of InterDigital. The Fool owns shares of Qualcomm. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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