Got this analysis of Intel by clicking on:
vectorvest.com
Stock Analysis of Intel
Thank you for requesting an analysis of Intel from VectorVest ProGraphics. The ticker symbol for
Intel is INTC . INTC is traded on the NASDAQ and options are available on this stock.
PRICE: INTC closed on 07/06/1998 at $73.5 per share.
VALUE: INTC has a Value of $64.9 per share. Value is the foundation of the VectorVest system.
It is a measure of what a stock is currently worth. Value is based upon earnings, earnings growth rate,
dividend payments, dividend growth rate, and financial performance. Current interest and inflation
rates also play an important role in the computation of Value. When interest and/or inflation rates
decrease, Value goes up. When interest rates and inflation increase, Value goes down. Sooner or later
a stock's Price and Value always converge.
RV (Relative Value): INTC has an RV of 0.96. On a scale of 0.00 to 2.00, an RV of 0.96 is fair.
RV reflects the long-term price appreciation potential of the stock compared to an alternative
investment in AAA Corporate Bonds. Stocks with RV ratings above 1.00 have attractive upside
potential. A stock will have an RV greater than 1.00 when its Value is greater than Price, and its
Relative Safety (see below) and forecasted earnings growth rate are above average. In some cases,
however, a stock's RV will be above 1.00 even though its Value is well below Price. This happens
when a stock has an exemplary record of financial performance and an above average earnings
growth rate. In this case, the stock is currently selling at a premium, and the investor is banking on
future earnings growth to drive the stock's price higher. This information is very useful not only in
knowing whether or not a stock has favorable price appreciation potential, but it also solves the riddle
of whether to buy high growth, high P/E, or low growth, low P/E stocks.
We believe that RV ratings above 1.00 are required to consistently achieve above average capital
gains in the stock market.
RS (Relative Safety): INTC has an RS rating of 1.09. On a scale of 0.00 to 2.00, an RS of 1.09 is
fair. VectorVest looks at safety from the viewpoint of an equity investor (one who is buying stock of a
company) rather than that of a purchaser of debt (one who is lending money to the company). From
this perspective, consistency of financial and operating performance, stock price appreciation history,
and price volatility are the key factors used in the evaluation of Relative Safety (RS). Debt to equity
ratio, capitalization, sales volume, business longevity and other factors are also considered, but to a
lesser degree.
VectorVest favors steady, predictable performers. All stocks are rated on a scale of 0.00 to 2.00. A
stock with an RS greater than 1.00 is safer and more predictable than the average of all stocks. A
stock with an RS less than 1.00 is less predictable and riskier than the average stock.
RT (Relative Timing): INTC has an RT rating of 0.95. On a scale of 0.00 to 2.00, an RT of 0.95
is fair. RT is a fast, responsive, short-term price trend indicator. It analyzes the direction, magnitude,
and dynamics of a stock's price behavior over the last 13 weeks; then reflects and projects the
short-term price performance of the stock. Once a stock's Price has established a strong trend, it is
expected to continue that trend for the short-term. If the trend dissipates, RT will gravitate towards
1.00. Should the price change dramatically, RT will notice the crucial turning point. When warranted, it
will explode from a Price low and dive from a Price high.
All stocks are rated on a scale of 0.00 to 2.00. If RT is above 1.00,the stock's Price is in an uptrend.
Below 1.00, the stock's Price is in a downtrend.
VST-Vector (VST): INTC has a VST-Vector rating of 1. On a scale of 0.00 to 2.00, an VST of 1
is fair. VST-Vector solves the dilemma of balancing Value, Safety and Timing. Stocks with high RV
values often have low RS values, or stocks withlow RV and RS values have high RT's. How can we
find the stocks with the best combinations of Value, Safety, and Timing?
The classic vector formula (square root of the sum of the squares) handles this problem. It combines a
set of forces into a single indicator for ranking every stock in the VectorVest database. Stocks with
the highest VST-Vector have the best combinations of Value, Safety and Timing. These are the ones
to own for above average capital application.
GRT (Growth Rate): INTC has a GRT of 9 % per year. This is fair. GRT stands for forecasted
Earnings Growth Rate in percent per year. GRT is updated each week for every stock. Watch GRT
trends very carefully. If the GRT trend is up, the stock's Price will likely rise. If the GRT trend is
down, the stock's Price will increase more slowly, cease to increase, or subsequently fall.
Recommendation (REC): INTC has a Hold recommendation. REC reflects the cumulative
effect of all the VectorVest parameters working together. These parameters are designed to help
investors buy safe, undervalued stocks which are rising in price, and to avoid or sell risky, overvalued
stocks which are falling in price.
VectorVest is tuned to give an "H" or "B" signal when a stock's price is approximately 10% above a
recent low, and an "S" signal when the stock's price is approximately 10% below a recent high. High
RV, RS stocks are favored toward receiving "B" REC's, and sheltered from receiving "S" RECs.
STOP-PRICE: INTC has a Stop-Price of 70.30 per share. This is 3.20 or 4.4% belowits current
closing Price. VectorVest analyzes over 6,000 stocks each day for Value, Safety and Timing, and
calculates a Stop-Price for each stock. These Stop-Prices are based upon 13 week moving averages
of closing prices, and are fine-tuned according to each stock's fundamentals.
In the VectorVest system, a stock gets a "B" or an "H" recommendation if its price is above its
Stop-Price, and an "S" recommendation if its price is below its Stop-Price.
DIV (Dividend): INTC pays an annual dividend of 0.12 per share. VectorVest focuses on annual,
regular, cash dividends indicated by the most recent disbursement. Special distributions, one-time
payments, stock dividends, etc., generally are not included in Dividend (DIV).
DY (Dividend Yield): INTC has a DY of 0.2percent. This is belowthe current market average of
1.2 percent. DY equals 100 x (DIV/PRICE), and is expressed as a percentage.
EY (Earnings Yield): INTC has an EY of 5.03%. This is above the current market average of
4.99%. EY equals 100 x (EARNINGS PER SHARE/PRICE), and is expressed as a percentage.
EPS (Earnings Per Share): INTC has an EPS of $3.7 per share. EPS stands for leading 12
months Earnings Per Share. VectorVest determines this forecast from a combination of recent
earnings performance and traditional fiscal and/or calendar year earnings forecasts.
P/E (Price to Earnings Ratio): INTC has a P/E ratio of 19.87. This ratio is computed daily
based upon Price and EPS. P/E = Price/EPS.
GPE (Growth to P/E Ratio): INTC has a GPE of 0.45. This ratio suggests that This ratio
suggests that INTC is overvalued. Growth to P/E ratio is a popular measure of stock valuation which
compares Earnings Growth Rate (GRT) to Price Earnings ratio (P/E). A stock is considered to be
undervalued when GPE is greater than 1.00, and vice-versa. VectorVest believes that RV is a much
better indicator of long-term value. The RV of 0.96 forINTC is fair.
DS (Dividend Safety): INTC has a DS of 76. On a scale of 0 to 99, a DS of 76 is excellent. DS
is defined as the assurance that regular cash dividends will be declared and paid at current or at higher
rates for the foreseeable future. Stocks with DS values above 50 on a scale of 0 to 99 areabove
average in safety.
RISK (Dividend Risk): INTC has a Dividend Risk of Low. All stocks in the VectorVest system
that pay dividends are classified as having Low, Medium or High Dividend Risk (RISK). Stocks with
DS values above 50 are above average in safety. These stocks are classified as having LOW or
MEDIUM RISK. Stocks with DS values below 50 are below average in safety and are classified as
having HIGH Risk.
DG (Dividend Growth): INTC has a DG of 12 percent per year. Dividend Growth is a subtle yet
important indicator of a company's historical financial performance and the board's current outlook on
the future use of funds.
YSG-VECTOR (Yield-Safety-Growth Vector): INTC has a YSG-Vector of 1.01. On a
scale of 0.00 to 2.00, an YSG-Vector rating of 1.01 is fair. VectorVest combines Dividend YIELD,
SAFETY and GROWTH into a single parameter. YSG-Vector allows direct comparison of all
dividend paying stocks. Stocks with the highest YSG-Vector values have the best combinations of
Dividend Yield, Safety and Growth. These are the stocks to buy for above average current income
and long-term growth.
VOL(100)s: INTC traded 8886500 shares on 07/06/1998.
AVG VOL(100)s: INTC has an Average Volume of 15048040. Average Volume is 50 day
moving average of daily volume as computed by VectorVest.
% VOL: INTC had a Volume change of -41% from its 50 day moving average volume.
OPEN: INTC opened trading at $73per share on 07/06/1998.
HIGH: INTC traded at a high of $73.9per share on 07/06/1998.
LOW: INTC traded at a low of $72.3 per share on 07/06/1998.
CLOSE: INTC Closed trading at $73.5 per share on 07/06/1998.
% PRC: INTC showed a Price change of 0.3% from the prior day's closing price.
INDUSTRY: INTC has been assigned to the Electronic (Semicndtr Mfg) Group. VectorVest
classifies stocks into over 190 Industry Groups and 50 Business Sectors.
INTC has about average safety with about average upside potential. It reflects a stock which is likely
to give about average, relatively consistent returns over the long term.
The basic strategy of VectorVest is to buy low risk, high reward stocks. We suggest that Prudent
investors buy enough high Relative Value, high Relative Safety stocks to keep the overall RV and RS
ratings of their portfolios above 1.00. As you do this, you'll find that your risk will go down and your
investment performance will improve. Not a bad combination.
Thank you for your interest in VectorVest ProGraphics. |
