Let's hope for that $21+ this week.
But the $25 seems very likely to me given the strong possibility that Intel will surprise even the most bullish estimates. I'm expecting about $1 EPS this year not counting the fraudulent EU fine, and north of $1.35 for next year. The growth would suggest about 35% year over year. That is huge!
Let's see where Intel's numbers are at now.
Currently, the average estimates call for a .65 for this year which really should be .90 since the $1.5 billion EU fine was counted also. And another $1.21 for next year which is a little over 5 quarters away. These numbers in my view are very conservative and expect less than Intel than what they actually can deliver given their most recent history of surprises. Yet that would still be a growh of 34% year over year. I'm expecting the continued positive earnings surprises to push Intel's actual earnings to over $1 a share for 2009 and guidance to have to be revised to around $1.35 to $1.4 for next year. Again, that would be a huge growth, in excess of 35% year over year, but this time the base number would be much higher also. This type of growth will at least command a 20 forward PE, which by the end of this year will be a more current PE. That means Intel could trade at $27 to $28 by end of this year. So $21 this week and $25+ after Q3 conference call is very much possible. Intel will finally gain respect they had before after explosive earnings surprise in Q3.
I agree. This stock can't be held down below $20 much longer given its earnings strength and very encouraging guidance. Both the earnings and guidance gave a very huge upward surprise during Q2 earnings call and to top it off, they recently updated their guidance with yet again, another huge upward revision. The average estimates currently are low enough to allow Intel to give another huge earnings surprise to the upside in Q3. That should finally give us a 10% pop following the surprise.