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

Zacks Equity Research
Chevron (CVX) closed the most recent trading day at $122.89, moving -0.16% from the previous trading session.

Intel (INTC) closed the most recent trading day at $53.48, moving -1.64% from the previous trading session. This change lagged the S&P 500's 0.09% loss on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq lost 0.16%.

Coming into today, shares of the world's largest chipmaker had gained 7.73% in the past month. In that same time, the Computer and Technology sector gained 4.21%, while the S&P 500 gained 2.35%.

Wall Street will be looking for positivity from INTC as it approaches its next earnings report date. In that report, analysts expect INTC to post earnings of $0.87 per share. This would mark no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.01 billion, down 0.33% from the year-ago period.

INTC's full-year Zacks Consensus Estimates are calling for earnings of $4.50 per share and revenue of $70.71 billion. These results would represent year-over-year changes of -1.75% and -0.19%, respectively.

Investors might also notice recent changes to analyst estimates for INTC. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. INTC currently has a Zacks Rank of #3 (Hold).

Investors should also note INTC's current valuation metrics, including its Forward P/E ratio of 12.07. For comparison, its industry has an average Forward P/E of 17.54, which means INTC is trading at a discount to the group.

Meanwhile, INTC's PEG ratio is currently 1.43. 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 was holding an average PEG ratio of 2.26 at yesterday's closing price.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 13% 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.

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


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