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Intel Corp.

Intel Corporation: A Stock on the Rise, But What's Next?

Strategic Insights

— 2 min read

Intel Corporation has been a popular stock on Zacks.com, with shares returning +13.9% over the past month, significantly outperforming the Zacks S&P 500 composite's +1.1% change. Despite the semiconductor industry losing 9% over this period, Intel's stock price has been on an upward trajectory. Revisions to earnings estimates are crucial in determining a company's fair value, and Intel's expected earnings of $0.10 per share for the current quarter, a year-over-year change of -23.1%, are being closely watched.

Key Takeaways:

  • Intel is expected to post earnings of $0.10 per share for the current quarter, representing a year-over-year change of -23.1%.
  • The Zacks Consensus Estimate has changed -10.3% over the last 30 days, with the current fiscal year consensus earnings estimate of $1.03 indicating a year-over-year change of -1.9%.
  • The next fiscal year's consensus earnings estimate of $1.82 indicates a change of +76.3% from the previous year.
  • Intel's revenue growth forecast is crucial for its financial health, with revenues of $12.72 billion in the last reported quarter, representing a year-over-year change of +8.6%.
  • The company has beaten consensus EPS estimates in each of the trailing four quarters, with an EPS surprise of +38.46%.
  • Intel is rated Zacks Rank #4 (Sell) due to the size of the recent change in the consensus estimate and three other factors related to earnings estimates.
  • The company is graded D on valuation, indicating that it is trading at a premium to its peers.

Statistics:

  • Intel's shares have returned +13.9% over the past month, compared to the Zacks S&P 500 composite's +1.1% change.
  • The Zacks Semiconductor - General industry has lost 9% over this period.
  • The current fiscal year consensus earnings estimate of $1.03 indicates a year-over-year change of -1.9%.
  • The next fiscal year's consensus earnings estimate of $1.82 indicates a change of +76.3% from the previous year.
  • Intel's revenues of $12.72 billion in the last reported quarter represented a year-over-year change of +8.6%.
  • The company's EPS surprise has been +38.46% over the last four quarters.

Sources:

  • "Intel Corporation (NASDAQ:INTC)" (Zacks.com)
  • "Revisions to earnings estimates are a priority for Zacks, as they believe the fair value for a company is determined by the present value of its future stream of earnings." (Empirical studies cited in the text)
  • "Empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements." (Empirical studies cited in the text)
  • "The Zacks Rank, a proprietary stock rating tool, offers a more conclusive picture of a stock's price direction in the near term due to the size of the recent change in the consensus estimate and three other factors related to earnings estimates." (Zacks.com)
  • "Intel is graded D on valuation, indicating that it is trading at a premium to its peers." (Zacks.com)

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