118.00 -0.59 (-0.50%)
After hours: 7:59PM EDT
|Bid||117.69 x 1800|
|Ask||0.00 x 800|
|Day's Range||117.80 - 118.89|
|52 Week Range||80.71 - 118.89|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.30|
|Expense Ratio (net)||0.35%|
Intel (NASDAQ:INTC), a giant within the almost-$500 billion global semiconductor industry, has recently seen a 52-week high at $59.59. INTC stock is expected to release earnings on April 25, after the close.Source: Shutterstock I believe that the relatively strong recent performance of the stock has been based on robust fundamentals, which I expect to continue in the rest of the year. With earnings season in full swing, let us look at the catalysts that are likely to provide tailwinds to INTC stock price. Intel Has Leadership and Robust FundamentalsIn 2018, Intel faced some challenges. At the time, the pain in INTC stock coincided with the sudden resignation of its CEO in June 2018, and Wall Street was not been impressed with how long the process to replace the interim CEO took. Finally in January 2019, the company named Robert Swan as the new CEO.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIts quarterly results released on Jan. 24 showed that Intel missed on revenue and the company gave weak guidance. However, many analysts highlighted that the tech giant was still delivering impressive double-digit growth at around 10% and enjoyed a dominant position in key markets. * 10 High-Yielding Dividend Stocks That Won't Wilt Intel's two largest segments are the client computing group (CCG) and data center group (DCG). Together they contribute almost all of Intel's operating profits.CCG includes Intel's PC and mobile-device chip business. The Central Processing Unit (CPU) is the "compute" in the computer. Intel's CGC segment makes the CPUs. INTC controls nearly three quarters of the CPU market, and Intel processors are the main component in most of the personal computers and servers globally.On the other hand, Intel's DCG segment makes CPUs that are optimized for enterprise-grade hardware, namely for data-center servers. On Apr. 2, the company held its Data-Centric Innovation Day, when it reaffirmed performance leadership in data center products and unveiled its next-gen processors as well as platform technologies.Intel currently holds a 99% share of the data center server market, which has been a consistent growth driver for the company. In 2014, about a third of Intel's revenue was data-centric; now it's half.Many investors believes that Intel's technological innovations will increase its ecosystem in diverse growth segments, including artificial intelligence (AI), 5G and autonomous driving (AD). These emerging sectors all require data in enormous quantities and at extremely high speeds.Although the tech titan is a mature company, Wall Street is seeing further growth opportunities as Intel re-orients itself to rely less on PCs and improves its revenue model to capitalize on the growth of the data business. Intel Stock Offers Strong Dividend Yield and Share BuybackOn March 14, Intel declared a quarterly common stock dividend of 31.5 cents per share, payable on June 1, 2019, to shareholders of record on May 7, 2019. INTC's dividend yield is a respectable 2.15%. Only a handful of established technology companies offer investors stable and growing dividends -- an important reason why Intel stock belongs to a capital-growth portfolio.Intel management has also been rewarding investors with share repurchases. In November 2018, the company announced a $15 billion increase in its stock repurchase program -- another indication of proactive management that aims to deliver higher stock returns for long-term investors. Short-Term Technical Analysis Year-to-date, Intel stock is up over 25%. As a result of the recent impressive run-up in the stock price, short-term technical indicators have become somewhat overextended. Investors who pay attention to short-term oscillators should note that INTC's technical message has also become "overbought."So, following its earnings report, there might be some profit-taking in INTC stock. Furthermore, if the industry or the broader market decline as companies release earnings, the Intel stock price may also be adversely affected. Several of Intel's competitors include Advanced Micro Devices (NASDAQ:AMD), Qualcomm (NASDAQ:QCOM) and NVIDIA (NASDAQ:NVDA) and as the market reacts to news and numbers from any of these companies as well, Intel's share price is likely to become choppy, too.If you already own Intel shares, you might want to hold your position. That said, if you are worried about short-term profit taking, then within the parameters of your portfolio allocation and risk/return profile, you may consider placing a stop loss at about 3%-5% below the current price point, to protect your profits to date.If you are an experienced investor in the options market, you may also consider using a covered call strategy with approximately a two-month time horizon. In that case, you may, for example, buy 100 shares of INTC at a limit price of $58.82 and, at the same time, sell an INTC June 21 $57.50 call option, which currently trades at $3.The $57.50 option is slightly in-the-money, offering downside protection in case of volatility and a decline in Intel stock. This call option would stop trading on June 21, 2019, and expire on June 22.In other words, I would not advocate bottom-picking in case of near-term price weakness. Yet, I find INTC stock to be a compelling buy candidate and by the end of 2020, I'd expect the shares to reach $70. The Bottom Line on INTC StockIntel's first-quarter earnings release will give Wall Street a chance to analyze the company's latest results and assess whether the stock's recent run-up in price can continue the rest of the year.Investors who are interested in INTC stock but do not want to commit all their capital to a single stock may also consider investing in various exchange-traded funds (ETFs) that have Intel as a holding. Examples of such funds include the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH), the iShares PHLX Semiconductor ETF (NASDAQ:SOXX) or the Invesco Dynamic Semiconductors ETF (NYSEARCA:PSI).As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 High-Yielding Dividend Stocks That Won't Wilt * 4 Energy Stocks Soaring as Trump Tightens on Iran * 7 Tech Stocks With Too Much Risk, Not Enough Upside Compare Brokers The post Should Long-Term Investors Buy into Intel's Earnings Results? appeared first on InvestorPlace.
The bull market's rebound has pushed chip stocks to their most overbought levels in fifteen months as measured by the sector's surging relative strength, which could lead to a pullback. Chip stocks' relative strength index (RSI), a key momentum gauge, has risen to as high as 70 for the VanEck Vectors Semiconductor ETF (SMH), a threshold which has historically signaled overbought conditions, per a detailed story in CNBC.
Dalio’s Bridgewater Warns about Peak Margins—Should You Care?Bridgewater AssociatesIn a published report, the world’s largest hedge fund, Bridgewater Associates, warned about peak US (SPY) (DIA) profit margins.As reported by CNBC,
Some of the market's leading ETFs are attracting the attention of short sellers as stocks inch back towards all-time highs amid increasing uncertainty.
Semiconductor ETFs Trade at 52-Week High: Time to Sell?(Continued from Prior Part)Semiconductor ETFs’ price momentum The iShares PHLX Semiconductor ETF (SOXX) and the VanEck Vectors Semiconductor ETF (SMH) hit a new 52-week high on April 17 due to
Semiconductor ETFs Trade at 52-Week High: Time to Sell?SMH hits a new 52-week high The VanEck Vectors Semiconductor ETF (SMH) hit a new 52-week high of $118.83 on April 17, driven by a more-than-20% increase in Qualcomm’s (QCOM) stock and
Could Apple and Qualcomm’s Settlement Mean Upside for Point72?(Continued from Prior Part)QCOM surges on a deal with Apple Qualcomm (QCOM) stock surged 23% on April 16 as Apple (AAPL), which QCOM has had an ongoing legal battle with over license
Could Apple and Qualcomm’s Settlement Mean Upside for Point72?Steve Cohen’s Point72 Management Steve Cohen is a very high-profile investor whose SAC capital returned 30% annually for more than 20 years. In 2012, the firm was found guilty of
These Tech Stocks Could Be Overvalued at Their Current Prices(Continued from Prior Part)TXN’s returns The stock of semiconductor (SMH) company Texas Instruments (TXN) has generated a return of 12.4% in the last 12 months. Since the start of 2019,
How Are Cybersecurity Stocks Trading Compared to Valuations?Stock returns Cybersecurity stocks have generated impressive returns over the last few years. The Prime Cyber Security ETF (HACK) has gained 21% this year and 77% in the last three years.
These Tech Stocks Could Be Overvalued at Their Current PricesMSFT’s returns Technology stocks have had a stellar run in 2019 after burning investors’ cash last year. While the Technology Select Sector SPDR ETF (XLK) has risen 25% this year, the
Are These Tech Stocks Overvalued after Nearing 52-Week Highs?(Continued from Prior Part)Stock returns The stock of semiconductor (SMH) company Analog Devices (ADI) has generated returns of 21% in the last 12 months. The stock, like the broader
Are These Tech Stocks Overvalued after Nearing 52-Week Highs?Accenture stock returns The first three and a half months of 2019 have been really good for tech investors. Several stocks have provided double-digit returns and have bounced back after a
Q1 Earnings: Smaller Chip Companies to Take a Bigger BlowThe semiconductor industry in 2017 and 2018The last two years have been strong for the global semiconductor market with revenue growing 21.6% in 2017 and 13.7% in 2018 on a YoY basis,
The Latest on FAANG Stocks, Walmart, AT&T, and YouTubeThe S&P 500 fell 0.6% on April 9The S&P 500 Index (SPY) fell for the first time in nine sessions on April 9 following more warnings from the International Monetary Fund about the
Why Semiconductor Stocks Fell on April 9Semiconductor stocks fell The tech-heavy NASDAQ Composite Index fell 0.37% in the early trading session on April 9 driven by declines in semiconductor stocks. Seven of NASDAQ’s top 12 decliners were
The chip industry is buzzing hot this year with the PHLX Semiconductor index gaining about 27% and hitting an all-time high. In order to tap the growing trend, investors should bet on ETFs & stocks in this industry.
Semiconductor ETFs Reach All-Time Highs ahead of Q1 Earnings(Continued from Prior Part)SMH and SOXX make new highs The semiconductor sector is set to report its weakest earnings in more than two years. Despite weak earnings expectations,
Semiconductor ETFs Reach All-Time Highs ahead of Q1 EarningsAnalysts downgrade semiconductors The first quarter earnings season is about to start, and the semiconductor sector is expected to report its weakest earnings in two years on the back of
Your First-Quarter Semiconductor Earnings Preview(Continued from Prior Part)The hottest stock in March 2019At a time when most chip companies are reporting weaker-than-expected earnings, Xilinx (XLNX) is beating earnings estimates.Xilinx’s growth
Your First-Quarter Semiconductor Earnings Preview(Continued from Prior Part)Texas Instruments Among the most anticipated earnings for the first quarter are those of Texas Instruments (TXN), a company that supplies analog chips and microcontrollers
Sony Stock Spikes: Has Daniel Loeb’s Third Point Bought a Stake?(Continued from Prior Part)Third Point: Sony should explore other optionsReuters reported that Third Point wants Sony (SNE) to explore options for some of its business units,
Your First-Quarter Semiconductor Earnings PreviewInvestors prepare for weak first-quarter earnings resultsWe’re heading into the first-quarter earnings season, and things look bleak for the entire market. According to FactSet, Wall Street analysts
Semiconductor stocks and exchange traded funds are in rally mode this year. The VanEck Vectors Semiconductor ETF (SMH) , one of the bellwethers among chip ETFs, is up nearly 28% year-to-date. Some market observers believe the rally in chip stocks can continue, particularly if investors remain enthusiastic about 5G.