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Intel (INTC) Gains But Lags Market: What You Should Know

Zacks Equity Research
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Intel (INTC) closed at $48.75 in the latest trading session, marking a +0.35% move from the prior day. This move lagged the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, added 0.99%.

Heading into today, shares of the world's largest chipmaker had gained 0.98% over the past month, lagging the Computer and Technology sector's gain of 3.63% and the S&P 500's gain of 3.01% in that time.

Wall Street will be looking for positivity from INTC as it approaches its next earnings report date. This is expected to be October 25, 2018. In that report, analysts expect INTC to post earnings of $1.15 per share. This would mark year-over-year growth of 13.86%. Meanwhile, our latest consensus estimate is calling for revenue of $18.10 billion, up 12.1% from the prior-year quarter.

INTC's full-year Zacks Consensus Estimates are calling for earnings of $4.15 per share and revenue of $69.50 billion. These results would represent year-over-year changes of +19.94% and +10.73%, respectively.

It is also important to note the recent changes to analyst estimates for INTC. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. INTC is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, INTC currently has a Forward P/E ratio of 11.69. This valuation marks a discount compared to its industry's average Forward P/E of 12.5.

Investors should also note that INTC has a PEG ratio of 1.39 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. The Semiconductor - General industry currently had an average PEG ratio of 1.77 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 35% 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.

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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