Intel (INTC) Rises Higher Than Market: Key Facts

In the latest market close, Intel (INTC) reached $19.20, with a +0.26% movement compared to the previous day. This change outpaced the S&P 500’s 0.16% gain on the day. Meanwhile, the Dow experienced a rise of 0.86%, and the technology-dominated Nasdaq saw a decrease of 0.38%.

The world’s largest chipmaker’s shares have seen a decrease of 5.85% over the last month, not keeping up with the Computer and Technology sector’s loss of 1.29% and the S&P 500’s loss of 2.2%.

The investment community will be paying close attention to the earnings performance of Intel in its upcoming release. The company is slated to reveal its earnings on January 30, 2025. The company is expected to report EPS of $0.12, down 77.78% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.77 billion, down 10.61% from the prior-year quarter.

Investors should also pay attention to any latest changes in analyst estimates for Intel. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.14% lower within the past month. As of now, Intel holds a Zacks Rank of #3 (Hold).

In the context of valuation, Intel is at present trading with a Forward P/E ratio of 20.71. This indicates a discount in contrast to its industry’s Forward P/E of 23.93.

Meanwhile, INTC’s PEG ratio is currently 1.94. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Semiconductor – General industry had an average PEG ratio of 3.05 as trading concluded yesterday.

The Semiconductor – General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 37% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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