Written by Norman Isaac Mwambazi

Intel outperforms stock market gains: What you should know

Intel Corporation (INTC), the world’s biggest chipmaker has been registering positives lately and its stock is now worth paying attention …

Intel Corporation (INTC), the world’s biggest chipmaker has been registering positives lately and its stock is now worth paying attention to (not that it wasn’t before). The company closed Thursday, December 3, 2020, at $51.99, moving +1.95% from the previous trading session.

This move outpaced the benchmark S&P 500’s daily gain of 0.88%, the Dow Jones’ 0.83%, and the tech-heavy Nasdaq’s 0.7%.

Heading into Friday, December 4, 2020, Intel’s shares had gained 11.62% over the past month, outpacing the Computer and Technology sector’s gain of 11.11% and the S&P 500’s gain of 9.12% in that time.

Wall Street will be looking for positivity from INTC as it approaches its next earnings report date. On that day, INTC is projected to report earnings of $1.10 per share, which would represent a year-over-year decline of 27.63%. Our most recent consensus estimate is calling for quarterly revenue of $17.44 billion, down 13.7% from the year-ago period.

Zacks Equity Research, an investment research firm focusing on stock research, analysis and recommendations estimates that Intel’s full-year Earnings Per Share (EPS) will be $4.89 and revenue of $75.33 billion. These results would represent year-over-year changes of +0.41% and +4.67%, respectively.

Investors should also note any recent changes to analyst estimates for INTC. 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.

Investors should also note INTC’s current valuation metrics, including its Forward P/E ratio of 10.42. Its industry sports an average Forward P/E of 28.42, so we one might conclude that INTC is trading at a discount comparatively.

Meanwhile, INTC’s PEG ratio is currently 1.39. 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 was holding an average PEG ratio of 3.11 at yesterday’s closing price.