Intel (INTC – Free Report) closed the latest trading day at $24.05, indicating a +1.48% change from the previous session’s end. This move lagged the S&P 500’s daily gain of 2.13%. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 2.61%.
The the stock of world’s largest chipmaker has fallen by 1.78% in the past month, leading the Computer and Technology sector’s loss of 13.29% and the S&P 500’s loss of 9.57%.
Analysts and investors alike will be keeping a close eye on the performance of Intel in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0, showcasing a 100% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.28 billion, indicating a 3.51% decrease compared to the same quarter of the previous year.
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.
Investors should also note any recent changes to analyst estimates for Intel. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 25.95% downward. At present, Intel boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Intel is currently exchanging hands at a Forward P/E ratio of 49.5. For comparison, its industry has an average Forward P/E of 28.12, which means Intel is trading at a premium to the group.
Meanwhile, INTC’s PEG ratio is currently 2.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Semiconductor – General industry had an average PEG ratio of 1.92 as trading concluded yesterday.
The Semiconductor – General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 33, placing it within the top 14% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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