Intel (INTC) closed at $23.62 in the latest trading session, marking a +0.85% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.33% for the day. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.53%.
The world’s largest chipmaker’s stock has dropped by 0.43% in the past month, exceeding the Computer and Technology sector’s loss of 7.14% and the S&P 500’s loss of 4.03%.
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, marking a 100% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.28 billion, down 3.51% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.48 per share and revenue of $53.36 billion, which would represent changes of +469.23% and +0.48%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Intel. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained stagnant. At present, Intel boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Intel is presently trading at a Forward P/E ratio of 48.92. Its industry sports an average Forward P/E of 27.23, so one might conclude that Intel is trading at a premium comparatively.
One should further note that INTC currently holds a PEG ratio of 2.88. 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. The Semiconductor – General was holding an average PEG ratio of 1.95 at yesterday’s closing price.
The Semiconductor – General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 38% echelons of all 250+ industries.
