Intel (INTC) closed the most recent trading day at $55.52, moving -0.56% from the previous trading session. This change was narrower than the S&P 500's 3.17% loss on the day. Elsewhere, the Dow lost 3.77%, while the tech-heavy Nasdaq lost 2.28%.
Coming into today, shares of the world's largest chipmaker had lost 16.01% in the past month. In that same time, the Computer and Technology sector lost 7.24%, while the S&P 500 lost 8.05%.
Wall Street will be looking for positivity from INTC as it approaches its next earnings report date. The company is expected to report EPS of $1.31, up 47.19% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.01 billion, up 18.34% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.99 per share and revenue of $73.55 billion. These totals would mark changes of +2.46% and +2.2%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for INTC. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. INTC is currently a Zacks Rank #2 (Buy).
In terms of valuation, INTC is currently trading at a Forward P/E ratio of 11.2. This valuation marks a discount compared to its industry's average Forward P/E of 19.6.
Also, we should mention that INTC has a PEG ratio of 1.49. 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 was holding an average PEG ratio of 2.47 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% 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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