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Intel (INTC) Gains But Lags Market: What You Should Know

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Intel (INTC - Free Report) closed at $46.36 in the latest trading session, marking a +0.37% move from the prior day. This change lagged the S&P 500's 0.86% gain on the day. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq added 0.38%.

Coming into today, shares of the world's largest chipmaker had lost 5.46% in the past month. In that same time, the Computer and Technology sector lost 5.08%, while the S&P 500 lost 7.55%.

Wall Street will be looking for positivity from INTC as it approaches its next earnings report date. This is expected to be January 24, 2019. On that day, INTC is projected to report earnings of $1.22 per share, which would represent year-over-year growth of 12.96%. Our most recent consensus estimate is calling for quarterly revenue of $19.01 billion, up 11.48% from the year-ago period.

INTC's full-year Zacks Consensus Estimates are calling for earnings of $4.53 per share and revenue of $71.20 billion. These results would represent year-over-year changes of +30.92% and +13.45%, respectively.

Investors should also note any recent changes to analyst estimates for INTC. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. INTC is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, INTC is holding a Forward P/E ratio of 10.2. For comparison, its industry has an average Forward P/E of 12.13, which means INTC is trading at a discount to the group.

Investors should also note that INTC has a PEG ratio of 1.21 right now. 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. The Semiconductor - General industry currently had an average PEG ratio of 1.72 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.




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