In the latest trading session, Intel (INTC) closed at $21.08, marking a -1.91% move from the previous day. This move lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 0.51%.
The world's largest chipmaker's stock has climbed by 4.57% in the past month, exceeding the Computer and Technology sector's gain of 2.98% and the S&P 500's gain of 0.45%.
The investment community will be closely monitoring the performance of Intel in its forthcoming earnings report. The company is forecasted to report an EPS of $0.01, showcasing a 50% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $11.87 billion, showing a 7.53% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.29 per share and a revenue of $50.8 billion, indicating changes of +323.08% and -4.33%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Intel. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Intel is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Intel is presently being traded at a Forward P/E ratio of 73.31. Its industry sports an average Forward P/E of 35.75, 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 7. 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. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 2.52.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 164, placing it within the bottom 34% of over 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.
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Intel Corporation (INTC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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