Intel Corp (INTC) is currently an undervalued stock which is likely to gain as much as 21% through the end of 2018. As of July 31st, the forward price earnings ratio for the company was 12.5 and it is 30% below its peer group of chip makers. Not only this, it is also 40% below the S&P 500 index on a whole.
Based on a lot of different combinations pertaining to multiple expansions and even increased earnings, the speculated target price for the share by the end of 2018 is likely to be $44. Intel had closed at $36.41 per share on Tuesday.
The competitors’ gain – Intel Corporation (NASDAQ:INTC) recently lost their leadership position in semiconductor sales revenue which they had managed to keep for more than a decade to Samsung Electronics. It is Advanced Micro Devices, Inc. (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ: ) that have turned out to be the top competitors for Intel as they have managed to deliver an impressive stock price performance so far.
The second quarter results for Intel Corporation (NASDAQ:INTC) were 22% above the last year’s figure and the revenues have turned up by 9.1% which is quite impressive for a company that has the size of Intel. If you remove Intel Corporation (NASDAQ:INTC) security group from the analysis, you will find that the increase in revenue has turned out to be 14%. The increase in EPS has been really impressive ever since Intel Corporation (NASDAQ:INTC) faced a greater tax rate.
It is likely that Intel Corporation (NASDAQ:INTC) is leveraged well for the future industry trends as the demand for data is likely to be on a rise. It is also likely that Intel is going to enter new markets and expand their available market significantly.