Intel (INTC) Gains But Lags Market: What You Should Know
Intel (INTC) closed at $58.61 in the latest trading session, marking a +0.51% move from the prior day. The stock lagged the S&P 500's daily gain of 0.78%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 1.44%.
Heading into today, shares of the world's largest chipmaker had lost 7.5% over the past month, lagging the Computer and Technology sector's gain of 4.97% and the S&P 500's loss of 1.32% in that time.
INTC will be looking to display strength as it nears its next earnings release, which is expected to be July 23, 2020. The company is expected to report EPS of $1.10, up 3.77% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.51 billion, up 12.17% from the year-ago period.
INTC's full-year Zacks Consensus Estimates are calling for earnings of $4.81 per share and revenue of $73.94 billion. These results would represent year-over-year changes of -1.23% and +2.75%, respectively.
Any recent changes to analyst estimates for INTC should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. INTC is currently a Zacks Rank #3 (Hold).
Investors should also note INTC's current valuation metrics, including its Forward P/E ratio of 12.12. For comparison, its industry has an average Forward P/E of 35.17, which means INTC is trading at a discount to the group.
Also, we should mention that INTC has a PEG ratio of 1.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - General was holding an average PEG ratio of 3.21 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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