Intel: You can only be amazed

Price return on Intel disappoints

Compared to the average annual performance of stocks in the same sector (“information technology”), Intel is down more than 96 percent, with a return of -38.02 percent. The “semiconductor and semiconductor equipment” sector comes in at a median return over the past 12 months of 44.07 percent. Again, Intel is well below that at 82.08 percent. This performance of the stock over the past year leads to a “sell” rating in this category.

How is Intel doing on dividends?

Intel pays out a dividend yield of 4.92 percent compared to the semiconductor and semiconductor equipment industry average based on current prices, 9.78 percentage points lower than the 14.71 percent average. The yield is thus lower, leading to a “Sell” rating.

Intel does not convince investors

One of the soft factors in the assessment of a share is the long-term observation of communication in the network. From this point of view, the Intel share has given the following picture for the past few monthsThe intensity of discussion, which is shown primarily by the frequency of word contributions, has produced only weak activity on the net in this regard. Intel therefore receives a “Sell” rating for this factor. The so-called rate of change in sentiment experienced a negative change during this period. This is equivalent to a “Sell” rating. This makes Intel a “Sell” stock overall.

What do technical analysts say?

From the last 200 trading days, the average closing price for Intel stock is calculated at $38.12. The closing price on the last trading day was USD 29.34 (-23.03 percent difference) and we therefore assign a “Sell” rating from a chart perspective. In addition to the 200-day moving average, the 50-day moving average is also often analyzed as part of the chart technique. This is currently USD 27.78, so the last closing price is above it (+5.62 percent). This means that on this shorter-term analysis basis, a different rating for Intel emerges, and the stock receives a “buy” rating. Intel thus receives an overall “hold” rating for the simple chart technique.

What do analysts recommend?

On a long-term basis, analysts rate Intel stock as a “hold” stock. For from a total of 18 analysts, these ratings were3 Buy, 13 Hold, 8 Sell. In a second view, the rating of the analysts for the past month is also interesting. The following picture emerged0 Buy, 3 Hold, 0 Sell. Thus, the latest analyses lead to an overall rating of “Hold”. On average, the analysts expect a price target of 33.85 USD. This results in an expectation of 15.36 percent, as the closing price is currently USD 29.34, which corresponds to a “Buy” rating. Based on all analyst estimates, we therefore assign a “Hold” rating.

Is the fundamental valuation attractive?

Intel is undervalued compared to the industry average (semiconductor and semiconductor equipment) in our view. The stock trades at a price-to-earnings (P/E) ratio of 15.61, giving it an 80 percent gap over the industry P/E of 77.29. This results in a “buy” recommendation on a fundamental basis.

What signals can investors take from the RSI?

For stocks, technical analysis also looks at the ratio of upward and downward movements of a price over time and records this for a 7-day period in the Relative Strength Index. Based on this so-called RSI, Intel is currently neither overbought nor oversold with a value of 67.79. Therefore, the rating for this signal is “Hold”. If the relative movement is extended to 25 days (RSI25), this results in a value of 39.94 for the stock, which is considered a signal that the stock is neither overbought nor oversold. Accordingly, the rating on this basis is “Hold”. Overall, this results in a rating of “Hold” for the RSI.