Intel has risen by more than 231% to around $50 a share in the eight years since our quantitative model upgraded the stock to a "Buy" from a "Hold" on October 7, 2010.
Quant Ratings evaluates thousands of stocks on a daily basis using a quantitative model that combines fundamental analysis of a firm's latest financial statements with technical analysis of a stock's price moves. You can check out Quant Ratings here.
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If you prefer exchange-traded funds to holding individual stocks, you may want to consider funds with a large percentage of holdings concentrated in Intel stock. 21 exchange-traded funds have Intel as a significant holding with more than 3% of fund assets invested in this giant chipmaker. The three of the four funds with the highest percentage of their assets in Intel are buy rated: First Trust Nasdaq Semiconductor (FTXL) rated as B+ with 7.3%, iShares PHLX Semiconductor ETF (SOXX) rated A+ with 7.3%, and J Hancock Multifactor Technology (JHMT) rated A+ with 4.9%.
Below is an excerpt from Quant Ratings' latest analysis of Intel:
Recently, TheStreet Quant 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' author. TheStreet Quant Ratings has this to say about the recommendation:
We rate INTEL CORP. as a buy with a ratings score of B+. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, attractive valuation levels and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the analysis by TheStreet Quant Ratings goes as follows:
Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Semiconductors & Semiconductor Equipment industry average. The net income increased by 78.3% when compared to the same quarter one year prior, rising from $2,808.00 million to $5,006.00 million.
Despite its growing revenue, the company underperformed as compared with the industry average of 16.8%. Since the same quarter one year prior, revenue rose by 14.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
Net operating cash flow has significantly increased by 57.48% to $7,413.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 46.48%.
You can view the full analysis from the report here: INTC
-- Reported by Kevin Baker in Palm Beach Gardens, FL