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Intel (INTC) Gains But Lags Market: What You Should Know

Intel (INTC) closed the most recent trading day at $31.31, moving +0.58% from the previous trading session. This move lagged the S&P 500's daily gain of 1.45%. At the same time, the Dow added 2.12%, and the tech-heavy Nasdaq gained 5.41%.

Heading into today, shares of the world's largest chipmaker had lost 0.35% over the past month, lagging the Computer and Technology sector's gain of 10.26% and the S&P 500's gain of 1.53% in that time.

Wall Street will be looking for positivity from Intel as it approaches its next earnings report date. In that report, analysts expect Intel to post earnings of -$0.02 per share. This would mark a year-over-year decline of 106.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.99 billion, down 21.72% from the year-ago period.

INTC's full-year Zacks Consensus Estimates are calling for earnings of $0.44 per share and revenue of $51.45 billion. These results would represent year-over-year changes of -76.09% and -18.4%, respectively.

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Investors should also note any recent changes to analyst estimates for Intel. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate has moved 4.02% higher within the past month. Intel is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Intel has a Forward P/E ratio of 71.36 right now. Its industry sports an average Forward P/E of 19.23, so we one might conclude that Intel is trading at a premium comparatively.

It is also worth noting that INTC currently has a PEG ratio of 14.76. 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 2.42 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 169, which puts it in the bottom 33% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Intel Corporation (INTC) : Free Stock Analysis Report

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