In the latest close session, Intel (INTC) was up +1.35% at $22.50. The stock outperformed the S&P 500, which registered a daily gain of 0.8%. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.97%.
Coming into today, shares of the world's largest chipmaker had gained 8.98% in the past month. In that same time, the Computer and Technology sector gained 8.5%, while the S&P 500 gained 5.12%.
Analysts and investors alike will be keeping a close eye on the performance of Intel in its upcoming earnings disclosure. The company is expected to report EPS of $0.01, down 50% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $11.87 billion, showing a 7.53% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.28 per share and revenue of $50.8 billion, which would represent changes of +315.38% and -4.33%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Intel. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.8% decrease. Intel is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Intel is holding a Forward P/E ratio of 78.46. This represents a premium compared to its industry average Forward P/E of 37.02.
It is also worth noting that INTC currently has a PEG ratio of 7.49. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Semiconductor - General industry had an average PEG ratio of 2.61 as trading concluded yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 189, positioning it in the bottom 24% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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
