Intel Stock is Down 30% This Year: Why it May Be Time to Cut Losses on INTC

Intel Corporation (INTC) shareholders have been battered and bruised in both the short and long term. The stock is down more than 30% through 2024 thus far. Looking back even further, the stock has tumbled 41% in the past 5 years. 

So, is it time to sell INTC and move on? We’re here to help you find out. 

It’s fair to look at stock price performance merely as a correlation to business performance. However, investor sentiment plays a big role in defining a stock’s success as well. And the sentiment surrounding INTC has been negative for quite some time. 

We can see this in comparing the company’s EPS to its stock performance. Earnings have fallen more than 57% each year since 2021. Over that same period, the stock has actually only fallen 17% – showing that investors have more or less been willing to weather the storm. That may not be the case much longer, though.

It’s also important to factor in the shareholder dividends in assessing the total gain – or in this case, loss – for investors. The TSR is an indication of the total return generated by a stock, factoring in spin-offs or discounted capital raisings in addition to the dividends themselves. Intel’s TSR is -37%, far lower than the 17% investors have lost just on their positions alone.

All this being said, there is some reason to believe that the business is stabilizing after a tumultuous few years. But, we found a few things in the VectorVest stock analysis software that you may want to see if you’re wondering if it’s time to cut losses or not.

INTC Has Fair Upside Potential and Safety With Poor Timing

VectorVest helps you win more trades with less work by telling you what to buy, when to buy it, and when to sell it. It’s all based on a proprietary stock rating system that delivers clear, actionable insights in 3 simple ratings: relative value (RV), relative safety (RS), and relative timing (RT).

Each sits on its own scale of 0.00-2.00 with 1.00 being the average, making interpretation quick and easy. You’re even offered a buy, sell, or hold recommendation based on the overall VST rating for a stock. As for INTC, here’s what we found:

• Fair Upside Potential: The RV rating is a comparison between a stock’s long-term price appreciation potential (forecasted 3 years out), AAA corporate bond rates, and risk. It offers far superior insights than the standard comparison of price to value alone. The RV rating of 1.01 is deemed fair for INTC. However, the stock is overvalued at its current price with a current value of just $28/share.
• Fair Safety: The RS rating is a risk indicator computed from an analysis of the company’s financial consistency & predictability, debt-to-equity ratio, business longevity, sales volume, price volatility, and other factors. The RS rating of 0.99 is just below the average but deemed fair nonetheless.
• Poor Timing: The RT rating is based on the direction, dynamics, and magnitude of the stock’s price movement day over day, week over week, quarter over quarter, and year over year. INTC has a poor RT rating of 0.56 right now.

The overall VST rating of 0.86 is a ways below the average for INTC, but it’s still considered fair. That being said, VectorVest rates this stock a SELL right now - get a free stock analysis today and make your next move with complete confidence and clarity!

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VectorVest advocates buying safe, undervalued stocks, rising in price. INTC has been hit hard over the past few years, and it doesn’t look to be turning around any time soon. The stock still has fair upside potential and safety, but its timing is poor.

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