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Intel (INTC) Dips More Than Broader Markets: What You Should Know

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Intel (INTC - Free Report) closed at $29.83 in the latest trading session, marking a -0.8% move from the prior day. This move lagged the S&P 500's daily loss of 0.09%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.22%.

Coming into today, shares of the world's largest chipmaker had gained 9.66% in the past month. In that same time, the Computer and Technology sector gained 7.08%, while the S&P 500 gained 5.55%.

Intel will be looking to display strength as it nears its next earnings release. In that report, analysts expect Intel to post earnings of $0.23 per share. This would mark a year-over-year decline of 78.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.5 billion, down 25.76% from the year-ago period.

INTC's full-year Zacks Consensus Estimates are calling for earnings of $1.96 per share and revenue of $63.51 billion. These results would represent year-over-year changes of -64.17% and -18.6%, respectively.

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 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. 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 has moved 0.01% lower. Intel is currently a Zacks Rank #5 (Strong Sell).

Investors should also note Intel's current valuation metrics, including its Forward P/E ratio of 15.33. This valuation marks a premium compared to its industry's average Forward P/E of 10.51.

We can also see that INTC currently has a PEG ratio of 2.04. 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 2.07 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 186, which puts it in the bottom 27% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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