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

Zacks Equity Research
Celanese (CE) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Intel (INTC) closed the most recent trading day at $47.44, moving +0.47% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.7%. At the same time, the Dow added 0.42%, and the tech-heavy Nasdaq gained 1.26%.

Prior to today's trading, shares of the world's largest chipmaker had lost 2.38% over the past month. This has was narrower than the Computer and Technology sector's loss of 4.86% and the S&P 500's loss of 6.13% in that time.

Investors will be hoping for strength from INTC as it approaches its next earnings release, which is expected to be January 24, 2019. In that report, analysts expect INTC to post earnings of $1.22 per share. This would mark year-over-year growth of 12.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.01 billion, up 11.48% from the year-ago period.

Investors might also notice 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.08% lower. 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 10.34. This represents a discount compared to its industry's average Forward P/E of 12.2.

It is also worth noting that INTC currently has a PEG ratio of 1.23. 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 1.76 at yesterday's closing price.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 239, which puts it in the bottom 6% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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