Intel (INTC) Outpaces Stock Market Gains: What You Should Know
Intel (INTC) closed the most recent trading day at $36.69, moving +0.96% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.16%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq added 0.49%.
Coming into today, shares of the world's largest chipmaker had lost 16.15% in the past month. In that same time, the Computer and Technology sector lost 8.85%, while the S&P 500 lost 6.79%.
Wall Street will be looking for positivity from Intel as it approaches its next earnings report date. In that report, analysts expect Intel to post earnings of $0.74 per share. This would mark a year-over-year decline of 42.19%. Meanwhile, our latest consensus estimate is calling for revenue of $17.98 billion, down 8.41% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.48 per share and revenue of $75.43 billion, which would represent changes of -36.38% and -3.33%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Intel. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 1.22% lower. Intel is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Intel currently has a Forward P/E ratio of 10.43. For comparison, its industry has an average Forward P/E of 9.12, which means Intel is trading at a premium to the group.
Investors should also note that INTC has a PEG ratio of 1.39 right now. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.79 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 38% 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.
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