GM,
regarding Intel, though I don't own it, it is interesting to take a closer look at this semi leader.
FY97, ending december, Intel earned $3.87. FY98 is going to be a terrible year at $3.35. With all the recent good news, FY99 is currently estimated at $4.06. If we forget the bad current yr, Intel is expected to grow from $3.87 in 97 to $4.06 in 99. This is a huge 4.9% gain over a span of 2 years.
At today's price of around 122, Intel is trading at a forward PE of 30, using the $4.06 estimate for FY99. During the past 5 yr, which were pretty good years for Intel, the stock traded at an average PE of 17.9. The growth rate going forward, per Zacks, is 19.96.
It is interesting that with all the information available on a real time basis via the web for free, investors seem to ignore this advantage but rather choose to follow the headlines.
Ramsey |
