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Intel (INTC) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Intel (INTC - Free Report) closed at $50, marking a +1.19% move from the previous day. This move outpaced the S&P 500's daily gain of 0.52%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 1.21%.

Prior to today's trading, shares of the world's largest chipmaker had gained 0.98% over the past month. This has outpaced the Computer and Technology sector's gain of 0.89% and the S&P 500's gain of 0.49% in that time.

Wall Street will be looking for positivity from INTC as it approaches its next earnings report date. On that day, INTC is projected to report earnings of $1.10 per share, which would represent a year-over-year decline of 22.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.21 billion, down 5.13% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.86 per share and revenue of $75.09 billion. These totals would mark changes of -0.21% and +4.34%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for INTC. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. INTC is currently a Zacks Rank #3 (Hold).

Looking at its valuation, INTC is holding a Forward P/E ratio of 10.17. Its industry sports an average Forward P/E of 27.42, so we one might conclude that INTC is trading at a discount comparatively.

We can also see that INTC currently has a PEG ratio of 1.36. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. INTC's industry had an average PEG ratio of 3.05 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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