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Intel (INTC) Laps the Stock Market: Here's Why

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Intel (INTC - Free Report) ended the recent trading session at $24.77, demonstrating a +1.35% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.3%. Meanwhile, the Dow experienced a drop of 0.48%, and the technology-dominated Nasdaq saw an increase of 0.03%.

Coming into today, shares of the world's largest chipmaker had gained 12.06% in the past month. In that same time, the Computer and Technology sector gained 3.1%, while the S&P 500 gained 2.09%.

Analysts and investors alike will be keeping a close eye on the performance of Intel in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0, reflecting a 100% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $13.12 billion, showing a 1.26% drop compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.15 per share and revenue of $52.2 billion. These totals would mark changes of +215.38% and -1.69%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Intel. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.22% decrease. Right now, Intel possesses a Zacks Rank of #3 (Hold).

Investors should also note Intel's current valuation metrics, including its Forward P/E ratio of 168.55. This valuation marks a premium compared to its industry average Forward P/E of 37.94.

It is also worth noting that INTC currently has a PEG ratio of 23.61. 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. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 3.7.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% 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.

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


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