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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 $30.65, moving +0.96% from the previous trading session. This move lagged the S&P 500's daily gain of 1.83%. Elsewhere, the Dow gained 1.4%, while the tech-heavy Nasdaq added 0.09%.

Coming into today, shares of the world's largest chipmaker had lost 12.05% in the past month. In that same time, the Computer and Technology sector lost 9.85%, while the S&P 500 lost 5.51%.

Intel will be looking to display strength as it nears its next earnings release. On that day, Intel is projected to report earnings of $0.35 per share, which would represent a year-over-year decline of 79.53%. Meanwhile, our latest consensus estimate is calling for revenue of $15.59 billion, down 18.77% from the prior-year quarter.

INTC's full-year Zacks Consensus Estimates are calling for earnings of $2.27 per share and revenue of $66.31 billion. These results would represent year-over-year changes of -58.5% and -15.02%, respectively.

It is also important to note the recent changes to analyst estimates for Intel. These revisions help to show the ever-changing nature of 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Intel currently has a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Intel has a Forward P/E ratio of 13.4 right now. For comparison, its industry has an average Forward P/E of 11.87, which means Intel is trading at a premium to the group.

Investors should also note that INTC has a PEG ratio of 1.79 right now. 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. INTC's industry had an average PEG ratio of 1.83 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 174, putting it in the bottom 31% 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.

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