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Intel (INTC) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Intel (INTC - Free Report) closed the latest trading day at $22.40, indicating a -1.93% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.05%. Meanwhile, the Dow experienced a drop of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.18%.

Prior to today's trading, shares of the world's largest chipmaker had gained 1.24% over the past month. This has lagged the Computer and Technology sector's gain of 3.5% and the S&P 500's gain of 2.76% in that time.

The upcoming earnings release of Intel will be of great interest to investors. The company's earnings report is expected on October 31, 2024. The company's upcoming EPS is projected at -$0.03, signifying a 107.32% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $13.01 billion, showing an 8.1% drop compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.27 per share and revenue of $52.18 billion. These totals would mark changes of -74.29% and -3.78%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Intel. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.3% lower. Intel is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Intel is presently being traded at a Forward P/E ratio of 85.44. This signifies a premium in comparison to the average Forward P/E of 23.43 for its industry.

It's also important to note that INTC currently trades at a PEG ratio of 7.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Semiconductor - General industry stood at 3.82 at the close of the market yesterday.

The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 201, placing it within the bottom 21% of over 250 industries.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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