This Day On The Street
Continue to site
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 Stock Starts Countdown to Launch

NEW YORK ( TheStreet) -- Intel (INTC - Get Report) 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

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ADI $55.47 -0.40%
INTC $30.04 0.47%
TSM $23.41 -0.38%
TXN $57.20 0.99%
AAPL $92.72 -0.56%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs