Should You Investigate Intel Corporation (NASDAQ:INTC) At US …
Intel Corporation (NASDAQ:INTC) saw a decent share price growth in the teens level on the NASDAQGS over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain?
Today I will analyse the most recent data on Intel’s outlook and valuation to see if the opportunity still exists. See our latest analysis for Intel
What’s The Opportunity In Intel?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 5.45% above my intrinsic value, which means if you buy Intel today, you’d be paying a relatively fair price for it.
And if you believe that the stock is really worth £27.84, there’s only an insignificant downside when the price falls to its real value. Furthermore, Intel’s low beta implies that the stock is less volatile than the wider market.
What kind of growth will Intel generate?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations.
With profit expected to grow by a double-digit 14% over the next couple of years, the outlook is positive for Intel. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? INTC’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team.
Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor? If you’ve been keeping tabs on INTC, now may not be the most optimal time to buy, given it is trading around its fair value.
However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. With this in mind, we wouldn’t consider investing in a stock unless we had a thorough understanding of the risks. For example – Intel has 3 warning signs we think you should be aware of.
If you are no longer interested in Intel, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
What are the risks and opportunities for Intel?
Intel Corporation designs, develops, manufactures, markets, and sells computing and related products worldwide.
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Rewards
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Price-To-Earnings ratio (15.2x) is below the Semiconductor industry average (17.8x)
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Earnings are forecast to grow 11.52% per year
Risks
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Profit margins (12.7%) are lower than last year (25.5%)
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Large one-off items impacting financial results
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation.
We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
