Intel Stock Ready to Shine Again

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Intel Corp. (NASDAQ:INTC) — This is the world’s largest semiconductor chip maker, but for two years the stock traded in a flat band from about $20 to $24. That trend came to end in October with the introduction of Ultrabooks, Windows 8 and tablets, which are all incremental drivers. These products provide the company with a new growth opportunity, according to Credit Suisse analysts.

Intel reported better-than-expected Q4 earnings and reported $2.39 for 2011. Earnings estimates for 2012 have been raised to $2.60, and to $2.85 in 2013. At under 10 times 2012 earnings, Intel’s fundamental price target has been raised to $35 from $32.

Technically the stock broke from its two-year consolidation in October and formed a new bull channel with support at its 50-day moving average and support line, both at $25. A recent rush to buy technology stocks has driven INTC to an “overbought” area. But a retracement back to within its new bull channel would provide an excellent buying opportunity. The technical target for INTC is $36, and the stock has a dividend yield of over 3%.

Trade of the Day – Intel Corp. (NASDAQ:INTC)
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Article printed from InvestorPlace Media, https://investorplace.com/2012/02/trade-of-the-day-intel-corp-nasdaq-intc-2/.

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