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Are Investors Undervaluing Intel (INTC) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice 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 has a Forward P/E ratio of 12.36. This compares to its industry's average Forward P/E of 17.28. INTC's Forward P/E has been as high as 12.86 and as low as 9.55, with a median of 11.06, all within the past year.
Investors should also note that INTC holds a PEG ratio of 1.65. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. INTC's PEG compares to its industry's average PEG of 2.24. Over the past 52 weeks, INTC's PEG has been as high as 1.68 and as low as 1.13, with a median of 1.41.
Another notable valuation metric for INTC is its P/B ratio of 3.41. 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. This stock's P/B looks solid versus its industry's average P/B of 4.60. Within the past 52 weeks, INTC's P/B has been as high as 3.58 and as low as 2.64, with a median of 3.
Finally, investors should note that INTC has a P/CF ratio of 8.69. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.55. Within the past 12 months, INTC's P/CF has been as high as 9.75 and as low as 6.59, with a median of 7.74.
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.
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Are Investors Undervaluing Intel (INTC) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice 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 has a Forward P/E ratio of 12.36. This compares to its industry's average Forward P/E of 17.28. INTC's Forward P/E has been as high as 12.86 and as low as 9.55, with a median of 11.06, all within the past year.
Investors should also note that INTC holds a PEG ratio of 1.65. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. INTC's PEG compares to its industry's average PEG of 2.24. Over the past 52 weeks, INTC's PEG has been as high as 1.68 and as low as 1.13, with a median of 1.41.
Another notable valuation metric for INTC is its P/B ratio of 3.41. 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. This stock's P/B looks solid versus its industry's average P/B of 4.60. Within the past 52 weeks, INTC's P/B has been as high as 3.58 and as low as 2.64, with a median of 3.
Finally, investors should note that INTC has a P/CF ratio of 8.69. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.55. Within the past 12 months, INTC's P/CF has been as high as 9.75 and as low as 6.59, with a median of 7.74.
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.