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Intel (INTC) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Intel (INTC) closed at $53.82, marking a -0.65% move from the previous day. This change lagged the S&P 500's daily loss of 0.29%. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, added 0.07%.

Heading into today, shares of the world's largest chipmaker had gained 5.39% over the past month, outpacing the Computer and Technology sector's gain of 4.76% and the S&P 500's gain of 2.14% in that time.

Investors will be hoping for strength from INTC as it approaches its next earnings release. In that report, analysts expect INTC to post earnings of $0.87 per share. This would mark no growth from the year-ago period. Meanwhile, our latest consensus estimate is calling for revenue of $16.01 billion, down 0.33% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.50 per share and revenue of $70.71 billion. These totals would mark changes of -1.75% and -0.19%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for INTC. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. INTC is currently a Zacks Rank #3 (Hold).

Looking at its valuation, INTC is holding a Forward P/E ratio of 12.03. For comparison, its industry has an average Forward P/E of 18.04, which means INTC is trading at a discount to the group.

It is also worth noting that INTC currently has a PEG ratio of 1.43. 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 2.26 at yesterday's closing price.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 8% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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