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Is Intel (INTC) Stock Undervalued Right Now?

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Zacks Equity Research
·3 min read
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Intel (INTC) is a stock many investors are watching right now. INTC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 13.31, which compares to its industry's average of 21.97. Over the last 12 months, INTC's Forward P/E has been as high as 14.18 and as low as 8.93, with a median of 11.03.

We also note that INTC holds a PEG ratio of 1.78. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. INTC's industry currently sports an average PEG of 2.65. Over the past 52 weeks, INTC's PEG has been as high as 1.89 and as low as 1.19, with a median of 1.47.

We should also highlight that INTC has a P/B ratio of 3.43. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.48. Over the past year, INTC's P/B has been as high as 3.79 and as low as 2.42, with a median of 2.96.

Finally, investors should note that INTC has a P/CF ratio of 7.70. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.03. Within the past 12 months, INTC's P/CF has been as high as 9.39 and as low as 5.44, with a median of 6.87.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Intel is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, INTC feels like a great value stock at the moment.

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Zacks Investment Research