Intel (INTC) ended the recent trading session at $131.72, demonstrating a +2.65% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.18%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 2.07%.
The stock of world's largest chipmaker has risen by 11.89% in the past month, leading the Computer and Technology sector's loss of 5.33% and the S&P 500's loss of 2.9%.
Investors will be eagerly watching for the performance of Intel in its upcoming earnings disclosure. The company is expected to report EPS of $0.21, up 310% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $14.39 billion, indicating a 11.9% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.06 per share and revenue of $58.07 billion. These totals would mark changes of +152.38% and +9.87%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Intel. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.09% rise in the Zacks Consensus EPS estimate. Right now, Intel possesses a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Intel has a Forward P/E ratio of 121.63 right now. This expresses a premium compared to the average Forward P/E of 60.91 of its industry.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 3, this industry ranks in the top 2% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
