Why the Market Dipped But Intel (INTC) Gained Today

Intel (INTC) closed the most recent trading day at $44.87, moving +1.98% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.11%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.41%.

Shares of the world's largest chipmaker witnessed a gain of 1.59% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.42% and underperforming the S&P 500's gain of 2.7%.

Investors will be eagerly watching for the performance of Intel in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.13, marking a 425% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $12.76 billion, indicating an 8.92% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.32 per share and a revenue of $57.77 billion, signifying shifts of +25.71% and +6.54%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Intel. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.66% decrease. Currently, Intel is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Intel is currently being traded at a Forward P/E ratio of 33.29. This represents a premium compared to its industry's average Forward P/E of 29.95.

Also, we should mention that INTC has a PEG ratio of 2.22. 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 2.65 as trading concluded yesterday.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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