Intel (INTC) closed the most recent trading day at $53.83, moving -0.09% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.55%, while the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the world's largest chipmaker had gained 9.05% in the past month. In that same time, the Computer and Technology sector gained 8.45%, while the S&P 500 gained 5.91%.
Wall Street will be looking for positivity from INTC as it approaches its next earnings report date. This is expected to be October 22, 2020. In that report, analysts expect INTC to post earnings of $1.10 per share. This would mark a year-over-year decline of 22.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.21 billion, down 5.13% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.86 per share and revenue of $75.09 billion, which would represent changes of -0.21% and +4.34%, respectively, from the prior year.
It is also important to note the 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 remained stagnant within the past month. INTC currently has a Zacks Rank of #3 (Hold).
In terms of valuation, INTC is currently trading at a Forward P/E ratio of 11.09. This valuation marks a discount compared to its industry's average Forward P/E of 30.66.
Meanwhile, INTC's PEG ratio is currently 1.48. 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 was holding an average PEG ratio of 3.2 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 243, which puts it in the bottom 4% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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