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Intel (INTC) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Intel (INTC) closed at $53.01 in the latest trading session, marking a +0.42% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.29%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.3%.

Prior to today's trading, shares of the world's largest chipmaker had gained 15.09% over the past month. This has outpaced the Computer and Technology sector's gain of 3.47% and the S&P 500's gain of 2.99% in that time.

INTC will be looking to display strength as it nears its next earnings release. On that day, INTC is projected to report earnings of $1.24 per share, which would represent a year-over-year decline of 11.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.04 billion, down 5.87% from the year-ago period.

INTC's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $69.37 billion. These results would represent year-over-year changes of -4.37% and -2.08%, respectively.

Investors should also note any 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. INTC currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, INTC is holding a Forward P/E ratio of 12.04. This represents a discount compared to its industry's average Forward P/E of 19.26.

It is also worth noting that INTC currently has a PEG ratio of 1.61. 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. INTC's industry had an average PEG ratio of 2 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 103, which puts it in the top 41% 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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