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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 $55.12, marking a +1.1% move from the previous day. This change outpaced the S&P 500's 0.85% gain on the day.

Coming into today, shares of the world's largest chipmaker had gained 3.47% in the past month. In that same time, the Computer and Technology sector gained 1.96%, while the S&P 500 lost 0.37%.

INTC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.11, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $18.4 billion, up 0.36% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.79 per share and revenue of $74.3 billion. These totals would mark changes of -9.62% and -4.58%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for INTC. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. INTC currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, INTC is holding a Forward P/E ratio of 11.38. This valuation marks a discount compared to its industry's average Forward P/E of 24.6.

Meanwhile, INTC's PEG ratio is currently 1.52. 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. The Semiconductor - General industry currently had an average PEG ratio of 2.66 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 17% 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.

To follow INTC in the coming trading sessions, be sure to utilize Zacks.com.


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