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

Buy Intel Ahead of Earnings

Given these new ambitions, I believe it's premature to count Intel out. Along those lines, I still believe that Intel's true growth potential will reside in mobile. This is not to discredit management's goals in entertainment. But I don't believe that Intel's pedigree in home theater can rival what Apple and Google are able to do.

Plus, when you factor in Microsoft's (MSFT) Xbox One and Sony's (SNE) existing dominance in entertainment, Intel's aspirations seem "reaching" -- to put it mildly. With that in mind, I expect management to maintain focus on growing product development and advancing better volumes in its chips business, which should spur Intel's profitability.

[Read: <a target="blank" data-add-tracking="true" href=""><em>5 Best Surf Schools</em></a>]

Though Qualcomm and ARM Holdings may be out of Intel's league at the moment. Intel still has distinct advantages over the likes of NVIDIA (NVDA) and Advanced Micro Devices (AMD). Plus, management has positioned Intel to capitalize on emerging markets. And I believe that this is where investors should begin to focus their attention.

The emerging markets are where most of the company's growth should be in the next few quarters. This is one of the main reasons that I'm bullish on Intel's core capabilities -- namely in areas like security and the cloud. What Intel needs is more time. The company will eventually recapture its magic and prove that is can increase its margins and outperform expectations.

In the meantime, from an investment perspective, I believe that the stock is trading for less than its fair market value, which I have estimated to be right around $32 per share. (Shares were changing hands Tuesday morning at $24.19.) For value investors with patience, the stock is a buy at this level ahead of earnings.

At the time of publication, the author was long AAPL.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Richard Saintvilus is a private investor with an information technology and engineering background and the founder and producer of the investor Web site Saint's Sense. He has been investing and trading for over 15 years. He employs conservative strategies in assessing equities and appraising value while minimizing downside risk. His decisions are based in part on management, growth prospects, return on equity and price-to-earnings as well as macroeconomic factors. He is an investor who seeks opportunities whether on the long or short side and believes in changing positions as information changes.
2 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
ARMH $41.19 0.00%
INTC $30.28 0.00%
QCOM $50.52 0.00%
AAPL $93.74 0.00%
FB $118.00 1.10%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs