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Intel (INTC) Gains As Market Dips: What You Should Know

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Intel (INTC - Free Report) closed at $29.29 in the latest trading session, marking a +0.38% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 3.64%.

Prior to today's trading, shares of the world's largest chipmaker had gained 17.19% over the past month. This has outpaced the Computer and Technology sector's gain of 6.7% and the S&P 500's gain of 0.07% in that time.

Intel will be looking to display strength as it nears its next earnings release. On that day, Intel is projected to report earnings of -$0.15 per share, which would represent a year-over-year decline of 117.24%. Meanwhile, our latest consensus estimate is calling for revenue of $11.05 billion, down 39.77% from the prior-year quarter.

INTC's full-year Zacks Consensus Estimates are calling for earnings of $0.55 per share and revenue of $50.83 billion. These results would represent year-over-year changes of -70.11% and -19.39%, 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.

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 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 0.65% lower. Intel currently has a Zacks Rank of #3 (Hold).

Investors should also note Intel's current valuation metrics, including its Forward P/E ratio of 52.64. This represents a premium compared to its industry's average Forward P/E of 23.51.

Also, we should mention that INTC has a PEG ratio of 9.32. 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 2.95 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 163, which puts it in the bottom 36% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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