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
TheStreet Open House

Intel Stock Starts Countdown to Launch

Stocks in this article: INTCTSMADITXN

NEW YORK ( TheStreet) -- Intel (INTC) has been trailing the semiconductor industry for the past year, experiencing hard times even in this good market.

Revenue and earnings haven't been disappointing but have been in line with analysts' expectations. They feel that the stock price is depressed and if they are right, investors coming in at this level could see an annual total return in the 19%-to-21% range over the next five years.

Let's look at how depressed the stock really is.

During the past year while the stock was down 21% the market as measured by the Value Line Arithmetic Index was up a solid 15% as this graph provided by Barchart shows:

Fundamental factors: Intel is huge with a market cap of $105 billion. The price-to-earnings ratio is a reasonable 9.88 and the dividend yield of 4.24% is about 45% of projected earnings. This year revenue is expected to be up 1.40% and up again next year by 4.50%.

Earnings are estimated to be down 8.90% this year due to heavy research and development expenses but up again by 8.20% next year, possibly continuing to improve for the next five years at an annual rate of 12.33%. The financial strength is A++ and TheStreet considers this a B- stock.

Technical factors: Due to the downward momentum the stock gets a 67% technical sell indicator from Barchart but recently the Trend Spotter has issued a hold signal.

The stock is trading above its 20- and 50-day moving averages but still below its 100-day moving average. The price was down 3.30% for the month and 20.40% for the year. The relative strength index was a neutral 49.89 and Barchart computes a technical support level at 20.97.

The stock recently traded at 21.15 slightly above its 50-day moving average of 21.05.

Investor sentiment: Sentiment is getting stronger with both the professional and individual investor. Thirty-seven Wall Street brokerage firms have assigned 49 analysts to predict the numbers and they gave six strong buy, 10 buy, 25 hold, seven under perform and just one sell recommendation to clients.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,380.41 +263.17 1.63%
S&P 500 1,886.76 +24.00 1.29%
NASDAQ 4,258.4380 +41.0480 0.97%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs