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

Zacks Equity Research

Intel (INTC) closed at $52.65 in the latest trading session, marking a +1.96% move from the prior day. The stock outpaced the S&P 500's daily gain of 1%.

Heading into today, shares of the world's largest chipmaker had lost 1.07% over the past month, lagging the Computer and Technology sector's loss of 0.45% and outpacing the S&P 500's loss of 1.22% in that time.

INTC will be looking to display strength as it nears its next earnings release, which is expected to be October 24, 2019. In that report, analysts expect INTC to post earnings of $1.24 per share. This would mark a year-over-year decline of 11.43%. Our most recent consensus estimate is calling for quarterly revenue of $18.04 billion, down 5.87% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.38 per share and revenue of $69.37 billion, which would represent changes of -4.37% and -2.08%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for INTC. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. INTC is currently a Zacks Rank #3 (Hold).

Looking at its valuation, INTC is holding a Forward P/E ratio of 11.78. For comparison, its industry has an average Forward P/E of 19.63, which means INTC is trading at a discount to the group.

It is also worth noting that INTC currently has a PEG ratio of 1.57. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 27% 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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