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

Zacks Equity Research

Intel (INTC) closed at $50.48 in the latest trading session, marking a +1.52% move from the prior day. This move outpaced the S&P 500's daily gain of 0.91%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 1.02%.

Coming into today, shares of the world's largest chipmaker had lost 4.04% in the past month. In that same time, the Computer and Technology sector lost 2.58%, while the S&P 500 lost 2.74%.

INTC will be looking to display strength as it nears its next earnings release, which is expected to be October 24, 2019. 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%. 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 should also note any recent changes to analyst estimates for INTC. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, 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).

In terms of valuation, INTC is currently trading at a Forward P/E ratio of 11.34. For comparison, its industry has an average Forward P/E of 18.63, which means INTC is trading at a discount to the group.

Investors should also note that INTC has a PEG ratio of 1.51 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.92 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 220, which puts it in the bottom 14% 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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