NEW YORK (TheStreet) -- Intel (INTC) reported a top- and bottom-line earnings beat for the fourth quarter Thursday, but guidance was below Street expectations for the first quarter. "I don't think you'll get hurt being long Intel here," Guy Adami, managing director of stockmonster.com, said on CNBC's "Fast Money" TV show.
The stock has had a big rally over the past 12 months, but at 15 times 2015 earnings the valuation isn't that bad, he reasoned. Adami is a buyer near $35.
Over the past few years, Intel tends to sell off on earnings, only to rally higher within a few trading sessions, according to Tim Seymour, managing partner of Triogem Asset Management. He acknowledged the PC market remains challenged, but investors can buy the stock on a slightly deeper pullback based on the company's exposure to mobile.
Intel is likely to see growth from the wearable technology market, said Steve Grasso, director of institutional sales at Stuart Frankel. While the stock has generally been viewed as a "safety" play, shares will go down if the broader market sells off.
The company hasn't diversified enough of its business away from the PC market, said Brian Kelly, founder of Brian Kelly Capital. For that reason PC sales will continue to be an impact for Intel. The stock is a sell if it breaks below the $35.26 to $35.50 area.
Investors can consider selling the stock short near current levels, according to Cody Acree, managing director of Ascendiant Capital Markets. He has a sell rating and $24 price target on shares of Intel. Guidance came in light and the company is likely to see continued pricing pressure. When gross margins peak, which they may have in the fourth quarter, the stock price tends to peak as well, he concluded.
Schlumberger (SLB) also reported fourth-quarter earnings. Despite the fact that profits fell more than 80%, the company still topped EPS estimates, earning $1.50 per share in the latest quarter. Schlumberger missed on revenue estimates, raised its dividend and cut its 2015 capital expenditure budget by 25%, to $3 billion from $4 billion.
If oil prices go lower, so will shares of Schlumberger, Grasso reasoned. Many other companies will also have to cut capital expenditures, if they haven't already.