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Here's Why Intel (INTC) Fell More Than Broader Market

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Intel (INTC - Free Report) ended the recent trading session at $36.06, demonstrating a -1.37% swing from the preceding day's closing price. This change lagged the S&P 500's 0.01% loss on the day. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.25%.

The world's largest chipmaker's shares have seen a decrease of 3.76% over the last month, not keeping up with the Computer and Technology sector's loss of 0.05% and the S&P 500's loss of 1.6%.

The upcoming earnings release of Intel will be of great interest to investors. The company's earnings report is expected on October 26, 2023. The company is expected to report EPS of $0.21, down 64.41% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $13.48 billion, reflecting a 12.12% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.62 per share and revenue of $52.62 billion, indicating changes of -66.3% and -16.55%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Intel. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 1.49% rise in the Zacks Consensus EPS estimate. Intel presently features a Zacks Rank of #2 (Buy).

Investors should also note Intel's current valuation metrics, including its Forward P/E ratio of 59.1. This represents a premium compared to its industry's average Forward P/E of 19.12.

Meanwhile, INTC's PEG ratio is currently 9.52. 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. The average PEG ratio for the Semiconductor - General industry stood at 2.72 at the close of the market yesterday.

The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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