U.S. Markets open in 1 hr 56 mins

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

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Intel (INTC) closed the most recent trading day at $43.34, moving -0.12% from the previous trading session. This change lagged the S&P 500's daily gain of 0.31%. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 0.14%.

Heading into today, shares of the world's largest chipmaker had lost 2.05% over the past month, outpacing the Computer and Technology sector's loss of 3.62% and lagging the S&P 500's loss of 1.38% in that time.

Wall Street will be looking for positivity from Intel as it approaches its next earnings report date. 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 $18.02 billion, down 8.2% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.53 per share and revenue of $75.55 billion. These totals would mark changes of -35.47% and -3.17%, respectively, from last year.

Any recent changes to analyst estimates for Intel should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Intel is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Intel has a Forward P/E ratio of 12.3 right now. This represents a premium compared to its industry's average Forward P/E of 11.89.

It is also worth noting that INTC currently has a PEG ratio of 1.64. 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. The Semiconductor - General industry currently had an average PEG ratio of 2.1 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 160, putting it in the bottom 37% 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Intel Corporation (INTC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.