Intel (INTC) closed the most recent trading day at $51.99, moving +1.95% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.88%. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 0.7%.
Heading into today, shares of the world’s largest chipmaker had gained 11.62% over the past month, outpacing the Computer and Technology sector’s gain of 11.11% and the S&P 500’s gain of 9.12% in that time.
Wall Street will be looking for positivity from INTC as it approaches its next earnings report date. On that day, INTC is projected to report earnings of $1.10 per share, which would represent a year-over-year decline of 27.63%. Our most recent consensus estimate is calling for quarterly revenue of $17.44 billion, down 13.7% from the year-ago period.
INTC’s full-year Zacks Consensus Estimates are calling for earnings of $4.89 per share and revenue of $75.33 billion. These results would represent year-over-year changes of +0.41% and +4.67%, respectively.
Investors should also note any recent changes to analyst estimates for INTC. Recent revisions tend to reflect the latest near-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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. INTC is currently a Zacks Rank #4 (Sell).
Investors should also note INTC’s current valuation metrics, including its Forward P/E ratio of 10.42. Its industry sports an average Forward P/E of 28.42, so we one might conclude that INTC is trading at a discount comparatively.
Meanwhile, INTC’s PEG ratio is currently 1.39. 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 was holding an average PEG ratio of 3.11 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 126, putting it in the top 50% 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.
