Benzinga - by Zacks, Benzinga Contributor.
Intel (NASDAQ: INTC) ended the recent trading session at $36.31, demonstrating a +1.74% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 1.2%. Elsewhere, the Dow saw a downswing of 0.65%, while the tech-heavy Nasdaq depreciated by 1.79%.
The the stock of world's largest chipmaker has fallen by 16.3% in the past month, lagging the Computer and Technology sector's loss of 0.51% and the S&P 500's loss of 0.85%.
The investment community will be closely monitoring the performance of Intel in its forthcoming earnings report. The company is scheduled to release its earnings on April 25, 2024. On that day, Intel is projected to report earnings of $0.13 per share, which would represent year-over-year growth of 425%. Meanwhile, our latest consensus estimate is calling for revenue of $12.76 billion, up 8.93% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.30 per share and a revenue of $57.77 billion, representing changes of +23.81% and +6.53%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Intel. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.66% lower. As of now, Intel holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Intel is holding a Forward P/E ratio of 27.48. This signifies a premium in comparison to the average Forward P/E of 24.67 for its industry.
Also, we should mention that INTC has a PEG ratio of 1.5. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Semiconductor - General industry stood at 2.11 at the close of the market yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To read this article on Zacks.com click here.