Why Intel (INTC) Stock Is Up Today

NEW YORK (TheStreet) -- Shares of Intel Corp.  (INTC) are up 1.24% to $33. as the company provided details of its latest advance in manufacturing technology, a milestone that arrived after a delay of more than six months due to technical problems, the Wall Street Journal reports.

The first chip based on the new production process, called the Intel Core M and based on a design called Broadwell, will be targeted at tablets and other devices that operate without a cooling fan but are as thin as nine millimeters or less.

Intel said the first devices based on the new chip will be on store shelves for the holiday selling season, with more devices from a range of manufacturers available in the first half of 2015.

 

TheStreet Ratings team rates INTEL CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate INTEL CORP (INTC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and reasonable valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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 39.8% when compared to the same quarter one year prior, rising from $2,000.00 million to $2,796.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 8.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Although INTC's debt-to-equity ratio of 0.22 is very low, it is currently higher than that of the industry average. To add to this, INTC has a quick ratio of 1.75, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 41.02% and other important driving factors, this stock has surged by 43.96% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, INTC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • You can view the full analysis from the report here: INTC Ratings Report

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