Intel (INTC) closed at $51.54 in the latest trading session, marking a -0.21% move from the prior day. This move was narrower than the S&P 500’s daily loss of 0.66%. Meanwhile, the Dow lost 0.29%, and the Nasdaq, a tech-heavy index, lost 1.25%.
Coming into today, shares of the world’s largest chipmaker had gained 2.77% in the past month. In that same time, the Computer and Technology sector gained 3.38%, while the S&P 500 gained 3.42%.
Investors will be hoping for strength from INTC as it approaches its next earnings release. On that day, INTC is projected to report earnings of $1.10 per share, which would represent a year-over-year decline of 27.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.44 billion, down 13.7% from the year-ago period.
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 such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. INTC is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, INTC is holding a Forward P/E ratio of 11.08. Its industry sports an average Forward P/E of 25.62, so we one might conclude that INTC is trading at a discount comparatively.
Also, we should mention that INTC has a PEG ratio of 1.48. 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. INTC’s industry had an average PEG ratio of 3.05 as of yesterday’s close.
The Semiconductor – General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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