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Intc Stock

The stock price of Intel Corporation has fallen 20% from its high earlier in the year. However, the company's fundamentals remain strong as it has exceeded analyst earnings estimates. At a price of 11 times projected 2018 earnings, the stock is now cheap relative to its growth potential. While the stock seems fairly valued currently, Intel is anticipated to increase profits significantly in the next few years. This recent price drop provides a potential buying opportunity for long term investors willing to do more research on the company's prospects.

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33 views4 pages

Intc Stock

The stock price of Intel Corporation has fallen 20% from its high earlier in the year. However, the company's fundamentals remain strong as it has exceeded analyst earnings estimates. At a price of 11 times projected 2018 earnings, the stock is now cheap relative to its growth potential. While the stock seems fairly valued currently, Intel is anticipated to increase profits significantly in the next few years. This recent price drop provides a potential buying opportunity for long term investors willing to do more research on the company's prospects.

Uploaded by

kennedy othoro
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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INTEL CORPORATION 1

INTEL CORPORATION

By [Name]

Course

Professor’s Name

Institution

Location of Institution

Date

Stock: Intel Corporation NASDAQ: INT


INTEL CORPORATION 2

From its highs accomplished earlier in the year, the stock of Intel is down by

twenty percent (Kempf et al. 2013 pp.62-78). The elementary reputation surrounding

the corporation is quite strong irrespective of its recent correction. Intel is trading at

just eleven times projected earnings of this year. By surpassing estimates of the

analysts, it has shown success. Now, it is relatively cheap. The recent fall in the price

of the share is likely a comparatively fit correction which has established a purchasing

in its stock. The stock has dropped by about twenty percent since topping out in June

at $ 57. Over the past one year, Intel is still up by a magnificent twenty-eight percent

despite the recent correction. Substantially, over the same time frame, it is more than

16% return of the S&P 500. Furthermore, as the corporation trades at just eleven

times 2018 projected earning, the stock is incredibly cheap now. Moreover, Intel is

likely to expand its earnings per share in 2019 and it offers a stable dividend (Kempf

et al. 2013 pp.62-78). In the recent months, the organization has also indicated a keen

capability to surpass the estimates of the analysts.

The recent correction therefore has likely established a significant buying

opportunities in the shares of Intel. The stock could increase significantly into 2019

and beyond (Kempf et al. 2013 pp.62-78). Over the last few months, the stock of the

firm received much attention from a considerable movement of price, at one point,

increasing to $55.54 and reducing to the lows of $ 44.93. The high volatility level

provides the investor the opportunity to enter into the stock, and possibly purchase at

artificially low prices.


INTEL CORPORATION 3

At the moment and according to my model of valuation, the stock seems fairly

valued. Before purchasing the shares, the investor looking for growth in his or her

portfolio could want to put into considerations the company prospects. At a cheap

price, a more compelling thesis of investment would be high potential for growth. The

future seems brighter for Intel with profits anticipated increase by 56.2% over the next

couples of years (Kempf et al. 2013 pp.62-78). It seems like greater cash flows are on

the cards for stock that need to feed into a higher valuation of share. Given that Intel

is trading around its fair value, now may not be the most appropriate time to purchase.

Nevertheless, for the business, the optimistic prospects are encouraging. This implies

that in order to take advantage of the next drop in price, it is worth digging deeper into

other aspects like its balance sheet strength.

Bibliography

Kempf, K.G., Erhun, F., Hertzler, E.F., Rosenberg, T.R. and Peng, C., 2013.

Optimizing capital investment decisions at Intel Corporation. Interfaces, 43(1),

pp.62-78.

Should You Think About Buying Intel Corporation (NASDAQ:INTC ...

https://simplywall.st/stocks/.../nasdaq.../intel/.../should-you-think-about-buying-intel-

c...
INTEL CORPORATION 4

Intel: Too Cheap To Ignore - Intel Corporation (NASDAQ:INTC ...

https://seekingalpha.com/article/4207836-intel-cheap-ignore

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