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

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In the latest trading session, Intel (INTC) closed at $36.97, marking a -0.99% move from the previous day. This change lagged the S&P 500's 0.22% gain on the day. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.22%.

Coming into today, shares of the world's largest chipmaker had lost 11.24% in the past month. In that same time, the Computer and Technology sector lost 9.55%, while the S&P 500 lost 10.02%.

Intel will be looking to display strength as it nears its next earnings release. In that report, analysts expect Intel to post earnings of $0.70 per share. This would mark a year-over-year decline of 45.31%. Meanwhile, our latest consensus estimate is calling for revenue of $17.98 billion, down 8.42% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.50 per share and revenue of $75.38 billion, which would represent changes of -36.01% and -3.4%, respectively, from the prior year.

Any recent changes to analyst estimates for Intel should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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. Within the past 30 days, our consensus EPS projection has moved 0.73% lower. Intel currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Intel currently has a Forward P/E ratio of 10.56. This represents a premium compared to its industry's average Forward P/E of 9.96.

It is also worth noting that INTC currently has a PEG ratio of 1.41. 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 1.81 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% 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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