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

Zacks Equity Research

Intel (INTC) closed the most recent trading day at $47.41, moving +1.15% from the previous trading session. This change outpaced the S&P 500's 0.06% gain on the day. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq lost 0.13%.

Prior to today's trading, shares of the world's largest chipmaker had lost 5.31% over the past month. This has lagged the Computer and Technology sector's loss of 4.41% and the S&P 500's loss of 2.95% in that time.

Investors will be hoping for strength from INTC as it approaches its next earnings release. The company is expected to report EPS of $1.24, down 11.43% from the prior-year quarter. 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 $4.37 per share and revenue of $69.37 billion. These results would represent year-over-year changes of -4.59% and -2.08%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 remained stagnant 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 10.73. This valuation marks a discount compared to its industry's average Forward P/E of 16.85.

Investors should also note that INTC has a PEG ratio of 1.43 right now. 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 industry currently had an average PEG ratio of 1.86 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 112, putting it in the top 44% 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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