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Intel (INTC) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest close session, Intel (INTC - Free Report) was down 2.9% at $34.47. This change lagged the S&P 500's 0.26% gain on the day. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.48%.

Prior to today's trading, shares of the world's largest chipmaker had gained 45.79% outpaced the Computer and Technology sector's gain of 7.4% and the S&P 500's gain of 2.87%.

Market participants will be closely following the financial results of Intel in its upcoming release. On that day, Intel is projected to report earnings of $0 per share, which would represent year-over-year growth of 100%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.12 billion, down 1.26% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.15 per share and revenue of $52.2 billion, indicating changes of +215.38% and -1.69%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Intel. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Intel is currently sporting a Zacks Rank of #4 (Sell).

From a valuation perspective, Intel is currently exchanging hands at a Forward P/E ratio of 244.83. This denotes a premium relative to the industry average Forward P/E of 40.05.

We can additionally observe that INTC currently boasts a PEG ratio of 34.29. 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 4.65 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 67, this industry ranks in the top 28% of all industries, numbering over 250.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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