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Intel (INTC) Beats Stock Market Upswing: What Investors Need to Know

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Intel (INTC - Free Report) ended the recent trading session at $23.92, demonstrating a +1.61% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.6%.

Coming into today, shares of the world's largest chipmaker had gained 20.04% in the past month. In that same time, the Computer and Technology sector gained 0.91%, while the S&P 500 gained 1.71%.

The investment community will be closely monitoring the performance of Intel in its forthcoming earnings report. It is anticipated that the company will report an EPS of -$0.03, marking a 107.32% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $13.01 billion, indicating an 8.1% decrease compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.27 per share and a revenue of $52.18 billion, indicating changes of -74.29% and -3.77%, respectively, from the former year.

Any recent changes to analyst estimates for Intel should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.32% downward. Intel is currently a Zacks Rank #3 (Hold).

In the context of valuation, Intel is at present trading with a Forward P/E ratio of 87.62. This signifies a premium in comparison to the average Forward P/E of 20.65 for its industry.

Also, we should mention that INTC has a PEG ratio of 5.6. 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. The Semiconductor - General was holding an average PEG ratio of 3.92 at yesterday's closing price.

The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 181, placing it within the bottom 29% of over 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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