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Intel (INTC) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Intel (INTC - Free Report) closed at $50.92, marking a +1.64% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.17%.

Prior to today's trading, shares of the world's largest chipmaker had gained 6.21% over the past month. This has outpaced the Computer and Technology sector's gain of 5.65% and the S&P 500's gain of 4.92% in that time.

Investors will be hoping for strength from INTC as it approaches its next earnings release. On that day, INTC is projected to report earnings of $1.24 per share, which would represent a year-over-year decline of 11.43%. Our most recent consensus estimate is calling for quarterly revenue of $18.04 billion, down 5.87% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.38 per share and revenue of $69.37 billion, which would represent changes of -4.37% and -2.08%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for INTC. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. INTC is currently a Zacks Rank #3 (Hold).

In terms of valuation, INTC is currently trading at a Forward P/E ratio of 11.43. Its industry sports an average Forward P/E of 18.09, so we one might conclude that INTC is trading at a discount comparatively.

Meanwhile, INTC's PEG ratio is currently 1.52. 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. The Semiconductor - General industry currently had an average PEG ratio of 1.94 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 107, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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


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