Intel (INTC) closed the most recent trading day at $36.05, moving -3.39% from the previous trading session. This change lagged the S&P 500's daily loss of 1.16%. Elsewhere, the Dow saw a downswing of 0.47%, while the tech-heavy Nasdaq depreciated by 1.81%.
The world's largest chipmaker's shares have seen an increase of 8.68% over the last month, surpassing the Computer and Technology sector's gain of 1% and the S&P 500's gain of 1.03%.
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 $0.08, marking a 38.46% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $13.38 billion, showing a 6.2% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.32 per share and revenue of $52.4 billion, indicating changes of +346.15% and -1.32%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Intel. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 1.8% higher. At present, Intel boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Intel has a Forward P/E ratio of 115.24 right now. This indicates a premium in contrast to its industry's Forward P/E of 35.41.
Meanwhile, INTC's PEG ratio is currently 12.42. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 4.5.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 15, which puts it in the top 7% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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