Intel Corp. (Nasdaq: INTC) – Intel is one of the largest semiconductor manufacturer in the world based on sales and market cap. The company and Samsung are in a close race in both categories for the top spot. Intel is based in Santa Clara, California and was founded in 1968.
Intel has seen earnings grow at a rate of 17% per year for the last three years and in the latest quarter the company reported earnings growth of 44%.
Analysts are predicting earnings growth of 20% for 2018 as a whole.
The company’s profitability measures are really strong with a return on equity of 24.8%, a profit margin of 34.4%, and an operating margin of 30.9%.
The sales growth hasn’t been as strong as the earnings growth, but over the last three years the company has grown sales by 6% per year and by 15% in the latest quarter.
Intel’s weekly chart shows that the stock has found support at its 52-week moving average after a recent pullback. The company guided earnings higher on June 21, but slipped after its actual earnings report on July 26. The weekly stochastic readings and 10-week RSI are the lowest they have been since last July. The stock rallied nicely after that temporary pullback and subsequent reversal.
Suggested strategy: Buy INTC with a maximum entry price of $51. I would set a target of at least $75 over the next 12 months (for a potential return of 50%-plus from current prices). I would suggest a stop loss at the $45 level.
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