Back to top

Image: Bigstock

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

Read MoreHide Full Article

Intel (INTC - Free Report) closed the most recent trading day at $66.25, moving +1.05% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.15%.

Heading into today, shares of the world's largest chipmaker had gained 11.18% over the past month, outpacing the Computer and Technology sector's gain of 5.14% and the S&P 500's gain of 6.19% 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 $1.15, down 20.69% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $18.01 billion, down 9.18% from the prior-year quarter.

INTC's full-year Zacks Consensus Estimates are calling for earnings of $4.61 per share and revenue of $73.21 billion. These results would represent year-over-year changes of -13.02% and -5.98%, respectively.

Investors might also notice recent changes to analyst estimates for INTC. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 6.93% lower. INTC is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, INTC is currently trading at a Forward P/E ratio of 14.44. This valuation marks a discount compared to its industry's average Forward P/E of 24.56.

Meanwhile, INTC's PEG ratio is currently 1.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - General industry currently had an average PEG ratio of 3.23 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 49, putting it in the top 20% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Intel Corporation (INTC) - free report >>

Published in