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

Zacks Equity Research

Intel (INTC) closed at $50.12 in the latest trading session, marking a +0.4% move from the prior day. This move outpaced the S&P 500's daily gain of 0.02%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.17%.

Heading into today, shares of the world's largest chipmaker had gained 6.9% over the past month, outpacing the Computer and Technology sector's gain of 6.42% and the S&P 500's gain of 4.82% in that time.

Investors will be hoping for strength from INTC as it approaches its next earnings release, which is expected to be July 25, 2019. In that report, analysts expect INTC to post earnings of $0.88 per share. This would mark a year-over-year decline of 15.38%. Our most recent consensus estimate is calling for quarterly revenue of $15.60 billion, down 8.02% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.23 per share and revenue of $68.51 billion, which would represent changes of -7.64% and -3.3%, respectively, from the prior year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. The Zacks Consensus EPS estimate has moved 0.45% lower within the past month. INTC is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note INTC's current valuation metrics, including its Forward P/E ratio of 11.81. This represents a discount compared to its industry's average Forward P/E of 16.29.

We can also see 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. The Semiconductor - General industry currently had an average PEG ratio of 1.92 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 218, putting it in the bottom 15% 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.

To follow INTC in the coming trading sessions, be sure to utilize Zacks.com.


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