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

In the latest trading session, Intel (INTC) closed at $26.97, marking a -2% move from the previous day. This change lagged the S&P 500's 1.03% loss on the day. Elsewhere, the Dow lost 1.11%, while the tech-heavy Nasdaq lost 0.12%.

Heading into today, shares of the world's largest chipmaker had lost 17.51% over the past month, lagging the Computer and Technology sector's loss of 13.11% and the S&P 500's loss of 10.4% in that time.

Wall Street will be looking for positivity from Intel as it approaches its next earnings report date. The company is expected to report EPS of $0.34, down 80.12% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.57 billion, down 18.89% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.24 per share and revenue of $66.2 billion. These totals would mark changes of -59.05% and -15.16%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Intel. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.93% lower. Intel is currently a Zacks Rank #5 (Strong Sell).

Looking at its valuation, Intel is holding a Forward P/E ratio of 12.26. This represents a premium compared to its industry's average Forward P/E of 10.83.

We can also see that INTC currently has a PEG ratio of 1.63. 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. The Semiconductor - General industry currently had an average PEG ratio of 1.78 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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