In the latest trading session, Intel (INTC) closed at $53.40, marking a -0.32% move from the previous day. This change was narrower than the S&P 500’s 0.46% loss on the day.
Coming into today, shares of the world’s largest chipmaker had lost 1.05% in the past month. In that same time, the Computer and Technology sector gained 3.42%, while the S&P 500 gained 1.93%.
Wall Street will be looking for positivity from INTC as it approaches its next earnings report date. The company is expected to report EPS of $1.11, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.4 billion, up 0.36% from the year-ago period.
INTC’s full-year Zacks Consensus Estimates are calling for earnings of $4.79 per share and revenue of $74.3 billion. These results would represent year-over-year changes of -9.62% and -4.58%, respectively.
Investors should also note any recent changes to analyst estimates for INTC. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 a Zacks Rank #3 (Hold).
Digging into valuation, INTC currently has a Forward P/E ratio of 11.18. For comparison, its industry has an average Forward P/E of 22.67, which means INTC is trading at a discount to the group.
We can also see that INTC currently has a PEG ratio of 1.49. 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. Semiconductor – General stocks are, on average, holding a PEG ratio of 2.57 based on yesterday’s closing prices.
The Semiconductor – General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 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.
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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