Intel (INTC) ended the recent trading session at $28.76, demonstrating a -2.77% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.44%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq increased by 0.7%.
The world's largest chipmaker's shares have seen an increase of 19.27% over the last month, surpassing the Computer and Technology sector's gain of 9.59% and the S&P 500's gain of 4.03%.
Market participants will be closely following the financial results of Intel in its upcoming release. It is anticipated that the company will report an EPS of $0, marking a 100% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $13.12 billion, down 1.26% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.15 per share and revenue of $52.2 billion, which would represent changes of +215.38% and -1.69%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Intel. 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 business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Intel holds a Zacks Rank of #3 (Hold).
In terms of valuation, Intel is currently trading at a Forward P/E ratio of 204. This valuation marks a premium compared to its industry average Forward P/E of 39.71.
It's also important to note that INTC currently trades at a PEG ratio of 28.57. 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. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 4.59.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Intel Corporation (INTC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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