Buy Today: Intel Corp's Buy Recommendation Reiterated

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- Intel (Nasdaq: INTC) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, revenue growth, largely solid financial position with reasonable debt levels by most measures, 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 ratings report include:
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.0%. Since the same quarter one year prior, revenues slightly increased by 2.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although INTC's debt-to-equity ratio of 0.23 is very low, it is currently higher than that of the industry average. To add to this, INTC has a quick ratio of 1.74, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has slightly increased to $6,162.00 million or 2.25% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -8.40%.

Intel Corporation designs, manufactures, and sells integrated digital technology platforms worldwide. The company operates through PC Client Group, Data Center Group, Other Intel Architecture, Software and Services, and All Other segments. Intel has a market cap of $125.8 billion and is part of the technology sector and electronics industry. The company has a P/E ratio of 14.00, below the S&P 500 P/E ratio of 18.00. Shares are down 3.2% year to date as of the close of trading on Thursday.

You can view the full Intel Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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