Intel (INTC) Gains As Market Dips: What You Should Know
Intel (INTC) closed at $46.91 in the latest trading session, marking a +0.55% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.35%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq gained 0.08%.
Heading into today, shares of the world's largest chipmaker had lost 0.68% over the past month, lagging the Computer and Technology sector's gain of 1.48% and the S&P 500's gain of 2.47% in that time.
Wall Street will be looking for positivity from INTC as it approaches its next earnings report date. This is expected to be October 25, 2018. The company is expected to report EPS of $1.15, up 13.86% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $18.10 billion, up 12.1% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.15 per share and revenue of $69.50 billion, which would represent changes of +19.94% and +10.73%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for INTC. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. INTC is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, INTC is currently trading at a Forward P/E ratio of 11.23. Its industry sports an average Forward P/E of 11.96, so we one might conclude that INTC is trading at a discount comparatively.
Also, we should mention that INTC has a PEG ratio of 1.33. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.69 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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