In the latest trading session, Intel (INTC - Free Report) closed at $57.70, marking a -0.16% move from the previous day. This change lagged the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.91%.
Heading into today, shares of the world's largest chipmaker had lost 0.03% over the past month, lagging the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 2.64% in that time.
Wall Street will be looking for positivity from INTC as it approaches its next earnings report date. On that day, INTC is projected to report earnings of $1.25 per share, which would represent a year-over-year decline of 2.34%. Meanwhile, our latest consensus estimate is calling for revenue of $19.20 billion, up 2.93% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.61 per share and revenue of $70.96 billion. These totals would mark changes of +0.66% and +0.16%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for INTC. These recent revisions tend to reflect the evolving nature of short-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. The Zacks Consensus EPS estimate remained stagnant within the past month. INTC is currently a Zacks Rank #2 (Buy).
Investors should also note INTC's current valuation metrics, including its Forward P/E ratio of 12.54. For comparison, its industry has an average Forward P/E of 23.68, which means INTC is trading at a discount to the group.
It is also worth noting that INTC currently has a PEG ratio of 1.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.05 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.