Intel INTC shares have largely been disappointing in 2024, unable to fully join the semiconductor trade and down more than 50%. Quarterly results have added fuel to the fire sale, with the stock unable to find any meaningful traction post-earnings.
Below is a chart illustrating the YTD performance of Intel shares relative to the S&P 500, with its quarterly releases illustrated by the circled arrows.
Image Source: Zacks Investment Research
Given the steep decline from highs, could it finally be time to go on the offensive and pick up some shares? Let’s take a closer look.
Intel Maintains Bearish Outlook
Currently, Intel carries a Zacks Rank #4 (Sell), indicating bearish earnings estimate revisions from analysts. Expectations for its current fiscal year have been notably negative, with the $0.27 Zacks Consensus EPS estimate down 85% over the last year.
The negative revisions, caused by unfavorable quarterly results, bode poorly for near-term share performance.
Image Source: Zacks Investment Research
Still, it’s worth noting that CEO Pat Gelsinger remains confident, buying 12.5k shares at a total transaction value of roughly $250k in early August following the latest quarterly print. He noted that second-half trends are more challenging than anticipated but still expects the company to restrengthen its position in the market.
Cost-cutting measures have also been a huge focus for the company over recent periods after margin pressures, as we can see in the chart below. In fact, Intel announced a $10 billion cost-savings target earlier in August.
Please note that the chart below is on a trailing twelve-month basis.
Image Source: Zacks Investment Research
Are Intel Shares a Buy?
Investors should stay on the sidelines until positive earnings estimate revisions roll in, which would signal a meaningful change in sentiment. Earnings expectations for its upcoming release expected on October 24th have already been slashed, with the company now expected to post a loss of -$0.03 per share.
Image Source: Zacks Investment Research
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
It’s worth noting that INTC shares have been red-hot over the last month, gaining nearly 20%. While the positive price action has been inspiring, the bulk of the move has likely been fueled by a short squeeze following rumors of buyouts.
For those seeking semiconductor exposure, there are many more positive stories, a list that obviously includes beloved AI-favorite Nvidia NVDA. Nvidia currently sports a Zacks Rank #2 (Buy), with its earnings outlook shifting higher across the board following unbelievable quarterly results.
And concerning the top line, Nvidia’s sales are forecasted to more than double in its current fiscal year.
Image Source: Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
