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

Zacks Equity Research

Intel (INTC) closed at $60.40 in the latest trading session, marking a +0.5% move from the prior day. This change lagged the S&P 500's 1.9% gain on the day. At the same time, the Dow added 2.05%, and the tech-heavy Nasdaq gained 1.75%.

Wall Street will be looking for positivity from INTC as it approaches its next earnings report date. The company is expected to report EPS of $1.10, up 3.77% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.51 billion, up 12.17% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.81 per share and revenue of $73.85 billion, which would represent changes of -1.23% and +2.62%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for INTC. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.22% lower within the past month. INTC is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that INTC has a Forward P/E ratio of 12.5 right now. This represents a discount compared to its industry's average Forward P/E of 36.76.

Meanwhile, INTC's PEG ratio is currently 1.67. 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 3.04 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 25, which puts it in the top 10% 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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