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

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The most recent trading session ended with Intel (INTC - Free Report) standing at $34.46, reflecting a -0.09% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.28% gain on the day. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.4%.

The the stock of world's largest chipmaker has risen by 13.27% in the past month, leading the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78%.

Investors will be eagerly watching for the performance of Intel in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 1, 2024. In that report, analysts expect Intel to post earnings of $0.10 per share. This would mark a year-over-year decline of 23.08%. Our most recent consensus estimate is calling for quarterly revenue of $12.96 billion, up 0.09% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $1.05 per share and a revenue of $55.69 billion, demonstrating changes of 0% and +2.69%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Intel. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Intel presently features a Zacks Rank of #4 (Sell).

In the context of valuation, Intel is at present trading with a Forward P/E ratio of 32.87. This valuation marks a premium compared to its industry's average Forward P/E of 31.56.

It's also important to note that INTC currently trades at a PEG ratio of 1.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. INTC's industry had an average PEG ratio of 2.7 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 108, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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