Intel (INTC) closed at $50.92 in the latest trading session, marking a -0.2% move from the prior day. This change was narrower than the S&P 500’s daily loss of 0.24%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, lost 0.58%.
Coming into today, shares of the world’s largest chipmaker had gained 11.42% in the past month. In that same time, the Computer and Technology sector gained 5.16%, while the S&P 500 gained 4.96%.
INTC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.24, down 11.43% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.04 billion, down 5.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.38 per share and revenue of $69.37 billion. These totals would mark changes of -4.37% and -2.08%, respectively, from last year.
Any recent changes to analyst estimates for INTC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. INTC is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, INTC is currently trading at a Forward P/E ratio of 11.64. This represents a discount compared to its industry’s average Forward P/E of 18.98.
We can also see that INTC currently has a PEG ratio of 1.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Semiconductor – General industry currently had an average PEG ratio of 1.96 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 196, putting it in the bottom 24% of all 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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