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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 $49.50, marking a +1.85% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.42%. Elsewhere, the Dow gained 1.82%, while the tech-heavy Nasdaq added 0.61%.

Prior to today's trading, shares of the world's largest chipmaker had lost 3.55% over the past month. This has lagged the Computer and Technology sector's loss of 1.17% and the S&P 500's loss of 2.09% in that time.

Wall Street will be looking for positivity from Intel as it approaches its next earnings report date. This is expected to be January 26, 2022. The company is expected to report EPS of $0.90, down 40.79% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $18.28 billion, down 8.48% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.28 per share and revenue of $73.49 billion, which would represent changes of -0.38% and -5.62%, respectively, from the prior year.

Any recent changes to analyst estimates for Intel should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Intel is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Intel has a Forward P/E ratio of 9.2 right now. Its industry sports an average Forward P/E of 22.2, so we one might conclude that Intel is trading at a discount comparatively.

Meanwhile, INTC's PEG ratio is currently 1.23. 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 2.98 at yesterday's closing price.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% 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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