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Intel (INTC) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, Intel (INTC - Free Report) closed at $22.31, marking a -1.54% move from the previous day. This change lagged the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 0.28%.

Shares of the world's largest chipmaker witnessed a gain of 5.54% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.88% and the S&P 500's gain of 3.48%.

The investment community will be closely monitoring the performance of Intel in its forthcoming earnings report. The company is scheduled to release its earnings on October 31, 2024. 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.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.27 per share and a revenue of $52.18 billion, indicating changes of -74.29% and -3.78%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Intel. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.75% decrease. Intel is currently sporting a Zacks Rank of #4 (Sell).

From a valuation perspective, Intel is currently exchanging hands at a Forward P/E ratio of 84.76. This represents a premium compared to its industry's average Forward P/E of 24.35.

Meanwhile, INTC's PEG ratio is currently 6.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor - General stocks are, on average, holding a PEG ratio of 3.83 based on yesterday's closing prices.

The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 183, this industry ranks in the bottom 28% of all industries, numbering over 250.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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