Intel (INTC) closed at $23.62 in the latest trading session, marking a +0.85% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.33% for the day. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.53%.
The world's largest chipmaker's stock has dropped by 0.43% in the past month, exceeding the Computer and Technology sector's loss of 7.14% and the S&P 500's loss of 4.03%.
The investment community will be closely monitoring the performance of Intel in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0, marking a 100% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.28 billion, down 3.51% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.48 per share and revenue of $53.36 billion, which would represent changes of +469.23% and +0.48%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Intel. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 remained stagnant. At present, Intel boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Intel is presently trading at a Forward P/E ratio of 48.92. Its industry sports an average Forward P/E of 27.23, so one might conclude that Intel is trading at a premium comparatively.
One should further note that INTC currently holds a PEG ratio of 2.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - General was holding an average PEG ratio of 1.95 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 38% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow INTC in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
