Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Intel (INTC - Free Report) closed at $20.14, marking a -3.03% move from the previous day. This change lagged the S&P 500's daily loss of 1.13%. On the other hand, the Dow registered a loss of 1.79%, and the technology-centric Nasdaq decreased by 1.3%.

Coming into today, shares of the world's largest chipmaker had lost 3.62% in the past month. In that same time, the Computer and Technology sector gained 7.36%, while the S&P 500 gained 3.55%.

Investors will be eagerly watching for the performance of Intel in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.01, marking a 50% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $11.87 billion, indicating a 7.53% decrease compared to the same quarter of the previous year.

INTC's full-year Zacks Consensus Estimates are calling for earnings of $0.29 per share and revenue of $50.8 billion. These results would represent year-over-year changes of +323.08% and -4.33%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Intel. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.93% decrease. At present, Intel boasts a Zacks Rank of #3 (Hold).

Investors should also note Intel's current valuation metrics, including its Forward P/E ratio of 70.86. This indicates a premium in contrast to its industry's Forward P/E of 35.99.

We can also see that INTC currently has a PEG ratio of 6.76. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 2.56.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Intel Corporation (INTC) - free report >>

Published in