This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Intel Into Earnings Is a Strong Buy

NEW YORK ( TheStreet) -- Buy-and-hold investors have crushed it with Intel (INTC - Get Report). Granted, if you bought during the dot-com bubble during 2000, your portfolio may still be upside down, but maybe not depending on your use of option hedging and dividend reinvestment strategies.

Investors from $28+ in 2012 are enjoying a fat and rising dividend while waiting for capital gains. For investors considering adding more shares or entering a new position, right now is an exciting time.

The earnings release is this week, and you can exploit elevated option premium to enhance your entry while at the same time lowering your risk.

First, let's look at what we are expecting with earnings, then the competitive landscape and finally, ideas on maximizing your edge.

INTC Chart INTC data by YCharts

Background: Intel designs, manufactures and sells integrated digital technology platforms primarily in the Asia-Pacific, the Americas, Europe, and Japan.

52-Week Range: $19.23 to $29.27

Price to Book: 2.2

Intel is forecast to record lower fourth-quarter earnings after the market closes on Jan. 17.

The consensus estimate is currently 45 cents a share, a drop of 19 cents (29.7%) from 64 cents during the equivalent quarter last year. Estimates from analysts range from a low of 36 cents per share, up to the highest estimate of 50 cents per share. Expected revenue and earnings pressure is the primary catalyst causing the share price to fall out of bed during in the second half of 2012.

TheStreet'sRobert Weinstein writes about Intel in Buy and Forget These 5 Dividend Stocks in 2013 .

Twenty-six out of 49 analysts covering Intel now rate the company a hold, while 16 recommend buying and 7 recommend selling.

Seven out of 49 analysts now rate Intel a strong buy down from 8 analysts a month ago. Analysts are increasingly negative; the number of analysts issuing a sell recommendation compared to a month ago has increased.

Based on the last month price action, the analysts that downgraded Intel couldn't have timed it more wrong.

Investing rule: Never blindly, in isolation, follow analysts. They often upgrade at peaks, and downgrade at bottoms. They are human too.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMD $1.77 3.51%
INTC $28.60 2.80%
NVDA $22.21 3.01%
QCOM $55.86 1.53%
TXN $47.35 2.18%

Markets

Chart of I:DJI
DOW 16,351.38 +293.03 1.82%
S&P 500 1,948.86 +35.01 1.83%
NASDAQ 4,749.9790 +113.8740 2.46%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs