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Intel (INTC) Soars to a 52-Week-High, Time to Cash Out?
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Have you been paying attention to shares of Intel Corporation (INTC - Free Report) ? Shares have been on the move with the stock up 13.54% over the past month. INTC hit a new 52-week high of $51.49 in the previous session. Intel has gained 11.18% since the start of the year compared to the 6.78% move for the Computer and Technology sector and the 13.35% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on January 25, 2018, Intel reported EPS of $1.08 versus the Zacks Consensus Estimate of $0.86 while it beat the consensus revenue estimate by 4.58%.
For the current fiscal year, Intel is expected to post earnings of $3.51 per share on $64.82 billion in revenues. This represents a 1.45% change in EPS on a 3.27% change in revenues. For the next fiscal year, the company is expected to earn $3.8 per share on $66.96 billion in revenues. This represents changes of 8.31% and 3.31%, respectively.
Valuation Metrics
Intel may be at a 52-week high right now, but what might the future hold for INTC? 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.
Intel Corporation has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 14.63x current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 9.54x versus its peer group's average of 18.18x. Additionally, the stock has a PEG ratio of 1.74. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Intel Corporation currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Intel Corporation fits the bill. Thus, it seems as though INTC shares could have potential in the weeks and months to come.
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Intel (INTC) Soars to a 52-Week-High, Time to Cash Out?
Have you been paying attention to shares of Intel Corporation (INTC - Free Report) ? Shares have been on the move with the stock up 13.54% over the past month. INTC hit a new 52-week high of $51.49 in the previous session. Intel has gained 11.18% since the start of the year compared to the 6.78% move for the Computer and Technology sector and the 13.35% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on January 25, 2018, Intel reported EPS of $1.08 versus the Zacks Consensus Estimate of $0.86 while it beat the consensus revenue estimate by 4.58%.
For the current fiscal year, Intel is expected to post earnings of $3.51 per share on $64.82 billion in revenues. This represents a 1.45% change in EPS on a 3.27% change in revenues. For the next fiscal year, the company is expected to earn $3.8 per share on $66.96 billion in revenues. This represents changes of 8.31% and 3.31%, respectively.
Valuation Metrics
Intel may be at a 52-week high right now, but what might the future hold for INTC? 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.
Intel Corporation has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 14.63x current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 9.54x versus its peer group's average of 18.18x. Additionally, the stock has a PEG ratio of 1.74. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Intel Corporation Price and Consensus
Intel Corporation Price and Consensus | Intel Corporation Quote
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Intel Corporation currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Intel Corporation fits the bill. Thus, it seems as though INTC shares could have potential in the weeks and months to come.