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Here's Why Intel (INTC) Fell More Than Broader Market
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In the latest close session, Intel (INTC - Free Report) was down 5.67% at $116.03. This change lagged the S&P 500's daily loss of 0.77%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.92%.
Prior to today's trading, shares of the world's largest chipmaker had gained 37.48% outpaced the Computer and Technology sector's gain of 6.26% and the S&P 500's gain of 0.96%.
The investment community will be paying close attention to the earnings performance of Intel in its upcoming release. In that report, analysts expect Intel to post earnings of $0.39 per share. This would mark year-over-year growth of 69.57%. Our most recent consensus estimate is calling for quarterly revenue of $16.36 billion, up 19.84% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.5 per share and a revenue of $62.25 billion, representing changes of +257.14% and +17.78%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Intel. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.55% higher. Intel is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Intel is presently trading at a Forward P/E ratio of 82.03. This represents a premium compared to its industry average Forward P/E of 38.49.
It's also important to note that INTC currently trades at a PEG ratio of 9.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. INTC's industry had an average PEG ratio of 1.74 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Here's Why Intel (INTC) Fell More Than Broader Market
In the latest close session, Intel (INTC - Free Report) was down 5.67% at $116.03. This change lagged the S&P 500's daily loss of 0.77%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.92%.
Prior to today's trading, shares of the world's largest chipmaker had gained 37.48% outpaced the Computer and Technology sector's gain of 6.26% and the S&P 500's gain of 0.96%.
The investment community will be paying close attention to the earnings performance of Intel in its upcoming release. In that report, analysts expect Intel to post earnings of $0.39 per share. This would mark year-over-year growth of 69.57%. Our most recent consensus estimate is calling for quarterly revenue of $16.36 billion, up 19.84% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.5 per share and a revenue of $62.25 billion, representing changes of +257.14% and +17.78%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Intel. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.55% higher. Intel is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Intel is presently trading at a Forward P/E ratio of 82.03. This represents a premium compared to its industry average Forward P/E of 38.49.
It's also important to note that INTC currently trades at a PEG ratio of 9.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. INTC's industry had an average PEG ratio of 1.74 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.