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Intel (INTC) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest trading session, Intel (INTC - Free Report) closed at $41.92, marking a -1.02% move from the previous day. This move lagged the S&P 500's daily loss of 0.06%. On the other hand, the Dow registered a loss of 0.22%, and the technology-centric Nasdaq increased by 0.31%.

The the stock of world's largest chipmaker has risen by 11.59% in the past month, leading the Computer and Technology sector's gain of 5.53% and the S&P 500's gain of 5.1%.

The upcoming earnings release of Intel will be of great interest to investors. The company is expected to report EPS of $0.44, up 340% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $15.13 billion, showing a 7.77% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.95 per share and a revenue of $53.93 billion, representing changes of -48.37% and -14.46%, respectively, from the prior year.

Any recent changes to analyst estimates for Intel should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 11.2% upward. Currently, Intel is carrying a Zacks Rank of #1 (Strong Buy).

Looking at valuation, Intel is presently trading at a Forward P/E ratio of 44.64. Its industry sports an average Forward P/E of 19.99, so one might conclude that Intel is trading at a premium comparatively.

It is also worth noting that INTC currently has a PEG ratio of 3.15. 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. INTC's industry had an average PEG ratio of 2.63 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 37, putting it in the top 15% 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.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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