Intel (INTC) closed the most recent trading day at $37.20, moving -0.03% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 0.45%. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Prior to today’s trading, shares of the world’s largest chipmaker had lost 1.9% over the past month. This has was narrower than the Computer and Technology sector’s loss of 2.03% and lagged the S&P 500’s loss of 1.89% in that time.
Wall Street will be looking for positivity from Intel as it approaches its next earnings report date. This is expected to be July 28, 2022. The company is expected to report EPS of $0.74, down 42.19% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.97 billion, down 8.47% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.48 per share and revenue of $75.23 billion, which would represent changes of -36.38% and -3.58%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Intel. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.49% lower. Intel is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that Intel has a Forward P/E ratio of 10.68 right now. Its industry sports an average Forward P/E of 10.02, so we one might conclude that Intel is trading at a premium comparatively.
It is also worth noting that INTC currently has a PEG ratio of 1.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Semiconductor – General stocks are, on average, holding a PEG ratio of 1.89 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 197, which puts it in the bottom 22% 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.
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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