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Intel (INTC) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Intel (INTC) closed at $27.64, marking a -0.22% move from the previous day. This move lagged the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Coming into today, shares of the world's largest chipmaker had lost 8.76% in the past month. In that same time, the Computer and Technology sector lost 4.64%, while the S&P 500 lost 3.29%.

Intel will be looking to display strength as it nears its next earnings release. In that report, analysts expect Intel to post earnings of $0.34 per share. This would mark a year-over-year decline of 80.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.53 billion, down 19.07% from the year-ago period.

INTC's full-year Zacks Consensus Estimates are calling for earnings of $2.24 per share and revenue of $66.15 billion. These results would represent year-over-year changes of -59.05% and -15.22%, respectively.

Any recent changes to analyst estimates for Intel should also be noted by investors. Recent revisions tend to reflect the latest 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 has moved 0.99% lower. Intel is currently a Zacks Rank #5 (Strong Sell).

Investors should also note Intel's current valuation metrics, including its Forward P/E ratio of 12.35. Its industry sports an average Forward P/E of 9.23, so we one might conclude that Intel is trading at a premium comparatively.

Investors should also note that INTC has a PEG ratio of 1.65 right now. 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 1.83 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 233, putting it in the bottom 8% 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.

To follow INTC in the coming trading sessions, be sure to utilize Zacks.com.


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