Intel (INTC) Advances While Market Declines: Some Information for Investors
Intel (INTC) closed the most recent trading day at $41.99, moving +0.38% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.28%. Meanwhile, the Dow experienced a drop of 0.08%, and the technology-dominated Nasdaq saw a decrease of 0.42%.
Coming into today, shares of the world's largest chipmaker had lost 2.7% in the past month. In that same time, the Computer and Technology sector gained 3.64%, while the S&P 500 gained 2.67%.
The upcoming earnings release of Intel will be of great interest to investors. In that report, analysts expect Intel to post earnings of $0.13 per share. This would mark year-over-year growth of 425%. Our most recent consensus estimate is calling for quarterly revenue of $12.76 billion, up 8.92% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.32 per share and revenue of $57.77 billion. These totals would mark changes of +25.71% and +6.54%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Intel. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.21% lower. As of now, Intel holds a Zacks Rank of #3 (Hold).
With respect to valuation, Intel is currently being traded at a Forward P/E ratio of 31.64. For comparison, its industry has an average Forward P/E of 29.64, which means Intel is trading at a premium to the group.
It is also worth noting that INTC currently has a PEG ratio of 2.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 2.47.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 25, this industry ranks in the top 10% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Intel Corporation (INTC) : Free Stock Analysis Report
