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Intel Stock Underperforms the NASDAQ

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Nov. 25 2015, Updated 1:53 p.m. ET

Overview of Intel’s stock

So far, we’ve seen that Intel (INTC) has taken several technology initiatives, entered into strategic partnerships with Oracle (ORCL) and Hewlett-Packard Enterprise (HPE), acquired Altera (ALTR), and spent on manufacturing to boost growth in the maturing semiconductor space.

All these activities have had both positive and negative impacts on the company’s share price over the year. Let’s see how the company’s stock has performed in the past 52 weeks.

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Intel has a market capitalization of $154.19 billion and has approximately 4.7 billion shares outstanding. The company has a price-to-earnings ratio of 14.56, which is lower than the technology sector’s average of 20.45. Intel’s stock price has underperformed the NASDAQ by 14.6%.

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Share price movement

On November 17, 2015, Intel’s stock closed at $32.64, down 13.9% from its 52-week high of $37.90 and up 31.2% from its 52-week low of $24.87. The stock was trading in its higher range from November 2014 to January 2015. It started a downward trend as a slowdown in PC (personal computer) shipments began offsetting the strong revenue growth the company witnessed in fiscal 2014.

The stock rallied starting in September 2015 and continued as the company witnessed a positive fiscal 3Q15.

Intel’s rival Advanced Micro Devices’ (AMD) stock also reported a downward trend from March 2015 onward. As of November 17, 2015, AMD stock is trading at $1.98, which is at the lower end of its 52-week range of $1.61–$3.37.

Analysts’ ratings

At present, 45 analysts cover Intel’s stock, and their consensus target price for the stock is  $34.67. Of these 45 analysts, 25 have given the stock “buy” ratings, 17 have given it “hold” ratings, and four have given it “sell” ratings.

In fiscal 3Q15, Intel reported EPS (earnings per share) of $0.64, beating analysts’ consensus estimate of $0.59. Analysts expect the company’s EPS to rise to $0.67 in fiscal 4Q15.

ETFs that include Intel’s stock

Intel’s 4.0% market capitalization is held by 88 ETFs. The SPDR S&P 500 ETF (SPY) has the maximum investment of $1.5 billion in Intel’s shares. In terms of holdings, the VanEck Vectors Semiconductor ETF (SMH) has the highest exposure to Intel at 18.3%.

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