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Intel (INTC) Beats Stock Market Upswing: What Investors Need to Know

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In the latest trading session, Intel (INTC - Free Report) closed at $40.02, marking a +1.65% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.62% for the day. Meanwhile, the Dow gained 0.99%, and the Nasdaq, a tech-heavy index, added 0.65%.

Shares of the world's largest chipmaker have depreciated by 2.31% over the course of the past month, underperforming the Computer and Technology sector's loss of 1.47%, and the S&P 500's gain of 0.59%.

The upcoming earnings release of Intel will be of great interest to investors. The company is predicted to post an EPS of $0.08, indicating a 38.46% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $13.38 billion, indicating a 6.2% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.34 per share and revenue of $52.55 billion, indicating changes of +361.54% and 0%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Intel. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. 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 67.37. This represents a premium compared to its industry average Forward P/E of 30.15.

We can also see that INTC currently has a PEG ratio of 7.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - General industry had an average PEG ratio of 3.14 as trading concluded yesterday.

The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 19, placing it within the top 8% of over 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.

To follow INTC in the coming trading sessions, be sure to utilize Zacks.com.


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