Back to top

Image: Bigstock

Is Intel (INTC) Stock Undervalued Right Now?

Read MoreHide Full Article

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Intel (INTC - Free Report) . INTC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.91, while its industry has an average P/E of 21.87. INTC's Forward P/E has been as high as 13.50 and as low as 8.93, with a median of 11.03, all within the past year.

INTC is also sporting a PEG ratio of 1.59. 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. INTC's PEG compares to its industry's average PEG of 2.64. Within the past year, INTC's PEG has been as high as 1.80 and as low as 1.19, with a median of 1.47.

We should also highlight that INTC has a P/B ratio of 2.97. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. INTC's current P/B looks attractive when compared to its industry's average P/B of 5.48. Over the past 12 months, INTC's P/B has been as high as 3.73 and as low as 2.42, with a median of 2.89.

Finally, we should also recognize that INTC has a P/CF ratio of 7.35. 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. INTC's P/CF compares to its industry's average P/CF of 12.03. Over the past 52 weeks, INTC's P/CF has been as high as 9.26 and as low as 5.44, with a median of 6.86.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Intel Corporation (INTC) - free report >>

Published in