Intel (INTC) Dips More Than Broader Markets: What You Should Know

Intel (INTC) closed the most recent trading day at $44.53, moving -0.78% from the previous trading session. This change lagged the S&P 500's 0.59% loss on the day. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.88%.

Coming into today, shares of the world's largest chipmaker had lost 1.51% in the past month. In that same time, the Computer and Technology sector lost 5.44%, while the S&P 500 lost 4.1%.

Investors will be hoping for strength from INTC as it approaches its next earnings release, which is expected to be October 25, 2018. On that day, INTC is projected to report earnings of $1.15 per share, which would represent year-over-year growth of 13.86%. Meanwhile, our latest consensus estimate is calling for revenue of $18.12 billion, up 12.18% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.16 per share and revenue of $69.51 billion, which would represent changes of +20.23% and +10.75%, respectively, from the prior year.

Any recent changes to analyst estimates for INTC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. INTC is currently a Zacks Rank #3 (Hold).

Looking at its valuation, INTC is holding a Forward P/E ratio of 10.8. This represents a discount compared to its industry's average Forward P/E of 11.85.

It is also worth noting that INTC currently has a PEG ratio of 1.28. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.88 based on yesterday's closing prices.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 236, which puts it in the bottom 7% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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