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Intel (INTC) Gains But Lags Market: What You Should Know

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Intel (INTC - Free Report) closed the most recent trading day at $52.26, moving +0.17% from the previous trading session. This move lagged the S&P 500's daily gain of 0.3%.

Coming into today, shares of the world's largest chipmaker had lost 4.31% in the past month. In that same time, the Computer and Technology sector lost 5.35%, while the S&P 500 lost 2.37%.

INTC will be looking to display strength as it nears its next earnings release, which is expected to be October 21, 2021. The company is expected to report EPS of $1.11, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.4 billion, up 0.36% from the year-ago period.

INTC's full-year Zacks Consensus Estimates are calling for earnings of $4.79 per share and revenue of $74.3 billion. These results would represent year-over-year changes of -9.62% and -4.58%, respectively.

It is also important to note the recent changes to analyst estimates for INTC. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. INTC is currently a Zacks Rank #4 (Sell).

In terms of valuation, INTC is currently trading at a Forward P/E ratio of 10.89. This represents a discount compared to its industry's average Forward P/E of 18.78.

Meanwhile, INTC's PEG ratio is currently 1.45. 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 was holding an average PEG ratio of 2.56 at yesterday's closing price.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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