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Intel (INTC) Dips More Than Broader Markets: What You Should Know

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Intel (INTC - Free Report) closed the most recent trading day at $46.17, moving -0.41% from the previous trading session. This move lagged the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq added 0.51%.

Heading into today, shares of the world's largest chipmaker had gained 0.65% over the past month, lagging the Computer and Technology sector's gain of 6.68% and the S&P 500's gain of 4% in that time.

INTC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.10, down 27.63% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.44 billion, down 13.7% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.89 per share and revenue of $75.33 billion, which would represent changes of +0.41% and +4.67%, respectively, from the prior 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. INTC is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, INTC is currently trading at a Forward P/E ratio of 9.48. This valuation marks a discount compared to its industry's average Forward P/E of 27.59.

Meanwhile, INTC's PEG ratio is currently 1.26. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 3.1 based on yesterday's closing prices.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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