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Intel (INTC, $59.22) beats Q1 earnings expectations; but hints at investment weighing on profit outlook
Intel Corp. reported first quarter earnings that surpassed analysts’ expectations. However, the semiconductor & tech behemoth indicated that investments in new manufacturing foundries would likely affect near-term profit margins.
Intel’s earnings came in at $1.39 per share , beating the $1.15 per share expected by analysts. The company’s sales of $18.6 billion, also exceeded analysts’ estimated $17.79 billion.
For the current quarter, Intel expects earnings of $1.05 per share on revenues of around $17.8 billion.
For the full-year, the company projects revenues forecasts of $72.5 billion, gross margins of 56.5% and earnings of $4.60 per share, on the back of work-from-home environment’s boost to PC demand.
Last month, Intel announced that it would invest $20 billion to build two new factories in Arizona.
“Gross margin percent will be lower in the second half of the year predominantly due to increased 7-nanometer start-up costs and industrywide supply constraints impacting client volume and mix," CFO George Davis said. "We expect increased R&D throughout the year as we invest in our road map and IDM 2.0 strategy."
Davis also mentioned that we expect increased demand in data center segment in the second half as both cloud enterprise and government segments returned to growth.
Momentum Indicator for INTC turns negative, indicating new downward trend
INTC saw its Momentum Indicator move below the 0 level on May 16, 2022. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 85 similar instances where the indicator turned negative. In 51 of the 85 cases, the stock moved further down in the following days. The odds of a decline are at 60%.
Current price $42.20 crossed the support line at $42.71 and is trading between $42.71 support and $39.67 support lines. Throughout the month of 04/25/22 - 05/25/22, the price experienced a -10% Downtrend. During the week of 05/18/22 - 05/25/22, the stock fell -0.35%.
INTC moved below its 50-day Moving Average on April 21, 2022 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where INTC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 54%.
The Aroon Indicator for INTC entered a downward trend on May 25, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 40 of 57 cases where INTC's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 70%.
Following a +1.80% 3-day Advance, the price is estimated to grow further. Considering data from situations where INTC advanced for three days, in 197 of 312 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
INTC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 67%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.27.
The Tickeron PE Growth Rating for this company is 73 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 61 (best 1 - 100 worst), indicating fairly steady price growth. INTC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 58 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 64, placing this stock slightly better than average.
The Tickeron SMR rating for this company is 41 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 8 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.673) is normal, around the industry mean (6.631). P/E Ratio (7.008) is within average values for comparable stocks, (46.567). Projected Growth (PEG Ratio) (2.354) is also within normal values, averaging (1.651). Dividend Yield (0.034) settles around the average of (0.020) among similar stocks. P/S Ratio (2.223) is also within normal values, averaging (28.546).
The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
The average market capitalization across the Semiconductors Industry is 20.4B. The market cap for tickers in the group ranges from 13.4K to 453.3B. TSMWF holds the highest valuation in this group at 453.3B. The lowest valued company is CYBL at 13.4K.
The average weekly price growth across all stocks in the Semiconductors Industry was -3.24%. For the same Industry, the average monthly price growth was -5.13%, and the average quarterly price growth was -24.73%. QNCCF experienced the highest price growth at 28.42%, while CYBL experienced the biggest fall at -22.75%.
- 5/25/22 7:32 AM: Intel (INTC, $41.67) was a top loser this week, declining -6.15%. Expect a Downtrend reversal
- 5/12/22 5:38 AM: Intel (INTC, $42.83) was a top loser this week, declining -7.24%. Expect a Downtrend reversal
- 3/29/22 5:17 AM: Intel (INTC, $51.51) was a top weekly gainer, with a +8.69% jump
The average weekly volume growth across all stocks in the Semiconductors Industry was -8.02%. For the same stocks of the Industry, the average monthly volume growth was 21.32% and the average quarterly volume growth was 32.59%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Positive Outlook today, backed by the 15 Indicator. Tickeron has a positive outlook on this group and predicts a further increase by more than 4.00% within the next month with a likelihood of 56%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.02.
45 stocks in the group of tickers confirmed the positive outlook based on the RSI indicator with average odds of 77%.
The most notable companies in this group are Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM), NVIDIA Corp (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO), Intel Corp (NASDAQ:INTC), Texas Instruments (NASDAQ:TXN), Advanced Micro Devices (NASDAQ:AMD), Analog Devices (NASDAQ:ADI), Micron Technology (NASDAQ:MU), NXP Semiconductors NV (NASDAQ:NXPI), Marvell Technology (NASDAQ:MRVL).
The average market capitalization across the group is 24.1B. The market cap for tickers in the group ranges from 0 to 460.6B. TSM holds the highest valuation in this group at 460.6B. The lowest valued company is MMATF at 0.
- 5/25/22 7:32 AM: NVIDIA (NVDA, $161.54) saw a $50.7B market cap decrease this week
- 5/25/22 7:32 AM: Taiwan Semiconductor Manufacturing (TSM, $88.72), market cap dropped by $21.2B
- 5/19/22 8:24 AM: NVIDIA (NVDA, $169.38), market cap dropped by $31.0B
The average weekly price growth across all stocks in the group was 0.37%. For the same group, the average monthly price growth was -3.43%, and the average quarterly price growth was -25.57%. OIIM experienced the highest price growth at 31.13%, while ADN experienced the biggest fall at -16.87%.
- 5/25/22 7:32 AM: Intel (INTC, $41.67) was a top loser this week, declining -6.15%. Expect a Downtrend reversal
- 5/25/22 7:32 AM: ON Semiconductor (ON, $54.5) was a top loser this week, declining -6.84%. Expect a Downtrend reversal
- 5/25/22 7:32 AM: STMicroelectronics (STM, $38.25) was a top loser this week, declining -5.72%. Expect a Downtrend reversal
The average weekly volume growth across all stocks in the group was 18.24%. For the same stocks of the group, the average monthly volume growth was 13.51% and the average quarterly volume growth was 268.38%
- 5/24/22 6:54 AM: The volume for O2Micro International stock increased for one day, resulting in a record-breaking daily growth of 265% of the 65-Day Volume Moving Average
- 5/17/22 6:45 AM: The volume for Infineon Technologies AG stock increased for one day, resulting in a record-breaking daily growth of 276% of the 65-Day Volume Moving Average
- 5/12/22 5:32 AM: The volume for WiSA Technologies stock increased for one day, resulting in a record-breaking daily growth of 311% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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