Back to top

Image: Bigstock

Intel (INTC) Stock Dips While Market Gains: Key Facts

Read MoreHide Full Article

The latest trading session saw Intel (INTC - Free Report) ending at $22.39, denoting a -1.32% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.01%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.08%.

Prior to today's trading, shares of the world's largest chipmaker had gained 12.89% over the past month. This has outpaced the Computer and Technology sector's gain of 1.03% and the S&P 500's gain of 1.21% in that time.

The investment community will be paying close attention to the earnings performance of Intel in its upcoming release. The company is forecasted to report an EPS of -$0.03, showcasing a 107.32% downward movement from the corresponding quarter of the prior 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.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.27 per share and revenue of $52.18 billion, which would represent changes of -74.29% and -3.77%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Intel. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.46% downward. Intel is currently a Zacks Rank #4 (Sell).

From a valuation perspective, Intel is currently exchanging hands at a Forward P/E ratio of 84.45. This valuation marks a premium compared to its industry's average Forward P/E of 25.71.

Meanwhile, INTC's PEG ratio is currently 5.39. 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. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 3.93.

The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 155, placing it within the bottom 39% of over 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


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


Intel Corporation (INTC) - free report >>

Published in