Intel (INTC) closed the most recent trading day at $43.10, moving -5.27% from the previous trading session. This change lagged the S&P 500's 0.94% loss on the day. At the same time, the Dow lost 0.83%, and the tech-heavy Nasdaq lost 1.02%.
Heading into today, shares of the world's largest chipmaker had lost 6.78% over the past month, lagging the Computer and Technology sector's loss of 4.34% and the S&P 500's loss of 1.3%.
The upcoming earnings release of Intel will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0, reflecting a 100% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $12.26 billion, indicating a 3.24% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $0.49 per share and a revenue of $53.79 billion, demonstrating changes of +16.67% and +1.77%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Intel. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 12.88% downward. Right now, Intel possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Intel is holding a Forward P/E ratio of 93.56. Its industry sports an average Forward P/E of 32.28, so one might conclude that Intel is trading at a premium comparatively.
It's also important to note that INTC currently trades at a PEG ratio of 2.22. 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 industry had an average PEG ratio of 1.9 as trading concluded yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 35% 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.
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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