Back to top

Image: Bigstock

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

Read MoreHide Full Article

Intel (INTC - Free Report) closed the most recent trading day at $59.85, moving +0.39% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.3%.

Coming into today, shares of the world's largest chipmaker had gained 3.4% in the past month. In that same time, the Computer and Technology sector gained 3.51%, while the S&P 500 gained 2.69%.

INTC will be looking to display strength as it nears its next earnings release, which is expected to be January 23, 2020. The company is expected to report EPS of $1.23, down 3.91% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.20 billion, up 2.93% from the year-ago period.

It is also important to note the recent changes to analyst estimates for INTC. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. INTC is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that INTC has a Forward P/E ratio of 12.93 right now. For comparison, its industry has an average Forward P/E of 24.85, which means INTC is trading at a discount to the group.

Meanwhile, INTC's PEG ratio is currently 1.72. 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 2.45 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 43, which puts it in the top 17% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Intel Corporation (INTC) - free report >>

Published in