Headquartered in Santa Clara, California, Intel (INTC) is among the largest microprocessor designers and manufacturers in the world. I am bullish on the stock.
There’s no denying it: technology stocks are unloved in 2022’s first quarter. Whether it’s rational or not, Intel stock got swept up in a rotation out of technology and into so-called “value plays.”
Yet, an argument could be made that Intel stock is a great value. Tech stocks tend to be lumped into the “growth” category, but pigeonholing Intel could prove to be a costly mistake for today’s investors.
So, is it possible for a company to provide growth and value at the same time? Intel is, once again, breaking the mold and proving that the world’s best tech companies never really go out of style.
Startling Stats
Sure, there are technology stocks that flew too fast and too far during the euphoric recovery from COVID-19. Intel stock certainly bounced back quickly, but this doesn’t mean that the shares are overpriced.
Consider this: on a trailing 12-month basis, Intel’s price-to-earnings ratio is 10. This should put an end to the argument that tech stocks are all overvalued.
Not only that, but Intel stock is ideal for dividend collectors. Currently, Intel offers a generous forward annual dividend yield of over 3%. This is basically the icing on the cake for income-focused investors.
Also, Intel stock’s 52-week range is $46.30 to $68.49. As of right now, Intel stock is much closer to the bottom of the range than the top.
So, why not “play the range” with Intel stock now? This buy-low, sell-high strategy has worked many times in the past with Intel, and it’s not likely to fail this year, in my opinion.
Great Finish to a Great Year
Amid a global chip shortage, there will still be skeptics who doubt that Intel will thrive in 2022.
The best response to the naysayers is to present undeniable data points. Intel’s fourth-quarter 2021 financial results paint a clear picture of a chipmaker in a slow but steady growth mode.
For instance, Intel posted Q4 2021 GAAP revenue of $20.5 billion, which beat the company’s October guidance by $1.2 billion. That results also represents a 3% year-over-year (YoY) improvement.
Turning to the bottom-line results, Intel posted GAAP fourth-quarter earnings per share (EPS) of $1.13 during Q4 2021. This result exceeded Intel’s October quarterly EPS guidance by 35 cents.
Looking ahead, Intel expects to generate first-quarter 2022 revenue of around $18.3 billion, which would allow the company’s forward momentum to continue.
“Q4 represented a great finish to a great year. We exceeded top-line quarterly guidance by over $1 billion and delivered the best quarterly and full-year revenue in the company’s history,” Intel CEO Pat Gelsinger commented as the results were released.
Wall Street’s Take
Turning to Wall Street, INTC stock has a Hold consensus rating, based on six Buys, nine Holds, and five Sells assigned in the past three months. The average Intel price target is $55.11, implying 12.5% upside potential.
The Takeaway
Intel stock might only be a Hold, according to the analysts, but you’re certainly free to buy the shares if you like Intel’s ideal mix of growth and value.
Granted, there’s a chip shortage going on, and this has turned some investors against companies like Intel.
Yet, the quarterly data is irrefutable. So, whether you’re seeking share-price appreciation or robust dividend payments – or maybe even both – I believe Intel stock is a rare tech-market opportunity today.
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