Intel (INTC) closed the most recent trading day at $26.79, moving -0.48% from the previous trading session. This change was narrower than the S&P 500’s 0.9% loss on the day. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.27%.
Coming into today, shares of the world’s largest chipmaker had lost 9.88% in the past month. In that same time, the Computer and Technology sector lost 4.11%, while the S&P 500 lost 2.66%.
Wall Street will be looking for positivity from Intel as it approaches its next earnings report date. In that report, analysts expect Intel to post earnings of $0.20 per share. This would mark a year-over-year decline of 81.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.5 billion, down 25.76% from the year-ago period.
INTC’s full-year Zacks Consensus Estimates are calling for earnings of $1.95 per share and revenue of $63.51 billion. These results would represent year-over-year changes of -64.35% and -18.6%, respectively.
Any recent changes to analyst estimates for Intel should also be noted by investors. These revisions help to show the ever-changing nature of 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. Within the past 30 days, our consensus EPS projection has moved 0.2% higher. Intel is currently a Zacks Rank #3 (Hold).
In terms of valuation, Intel is currently trading at a Forward P/E ratio of 13.77. Its industry sports an average Forward P/E of 13.77, so we one might conclude that Intel is trading at a no noticeable deviation comparatively.
It is also worth noting that INTC currently has a PEG ratio of 1.84. 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. The Semiconductor – General was holding an average PEG ratio of 1.91 at yesterday’s closing price.
The Semiconductor – General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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