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Intel (INTC) Rises Higher Than Market: Key Facts

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Intel (INTC - Free Report) closed at $21.15 in the latest trading session, marking a +1.81% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.7%. Elsewhere, the Dow saw an upswing of 1.26%, while the tech-heavy Nasdaq appreciated by 2.51%.

Shares of the world's largest chipmaker witnessed a loss of 2.99% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 1.45% and the S&P 500's gain of 1.27%.

Market participants will be closely following the financial results of Intel in its upcoming release. In that report, analysts expect Intel to post earnings of -$0.03 per share. This would mark a year-over-year decline of 107.32%. Our most recent consensus estimate is calling for quarterly revenue of $13.01 billion, down 8.1% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.27 per share and revenue of $52.19 billion, which would represent changes of -74.29% and -3.75%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Intel. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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. The Zacks Consensus EPS estimate has moved 20.26% lower within the past month. Currently, Intel is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, Intel is presently trading at a Forward P/E ratio of 76.74. This signifies a premium in comparison to the average Forward P/E of 21.09 for its industry.

It is also worth noting that INTC currently has a PEG ratio of 4.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. INTC's industry had an average PEG ratio of 3.86 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 178, this industry ranks in the bottom 30% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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