Intel (INTC) Stock Up, Argus: Attractive After Q2 Earnings Selloff

Intel (INTC) reported 2016 second quarter earnings this week leading to a massive stock selloff, but Argus Research says the company is an attractive buy.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Iintel (INTC) - Get Report  closed up 1.14% to $34.66 this afternoon after analysts at Argus Research argued that the stock is an attractive buy after a post-earnings selloff earlier this week.

For the 2016 second quarter, the company reported earnings of 59 cents a share vs. estimates of 53 cents and revenue of $13.5 billion, just missing estimates of $13.55 billion.

A selloff of the stock followed its earnings release, prompting Argus to reiterate a "buy" rating and $41 price target in a note cited by Barron's.

The firm noted that the decline after earnings discounts near-term challenges for the company's Data Center business and does not credit its improved Client business mix.

"Intel shares appear attractive based on historical comparable valuations and our more forward-looking discounted cash flow model," the firm said.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated the stock as a "buy" with a ratings score of B+.

The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, solid stock price performance, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. TheStreet Ratings feels its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: INTC

Loading ...