Intel Corporation (NASDAQ:INTC)’s stock has had a banner 52 weeks, rising more than 50% over the last year to begin the day at $34.23. Those gains are no fluke, and according to TheStreet Ratings team, the stock is poised to continue rising even further, achieving a rating score of A+ and a “Buy” rating from them.
What makes Intel Corporation (NASDAQ:INTC) so attractive? There are a few key points their analysis lists as determing factors in why Intel Corporation (NASDAQ:INTC) should continue to trend upwards for the foreseeable future. Firstly is their massive earnings growth, a 40% surge to $2.8 billion from a year ago. That growth has greatly exceeded the growth during that same timespan of both the S&P 500 Index, and the semiconductor industry as a whole.
Revenue was also up by 8%, which actually underperformed the overall industry, though their $13.8 billion in revenue and earnings per share of $0.55 during the last quarter did exceed analysts’ expectation. Their low debt-to-equity ratio of 0.22, and quick ratio of 1.75 were also cited as positives working in Intel Corporation (NASDAQ:INTC)’s favor, providing them flexibility.
If there’s one glaring weakness in Intel Corporation (NASDAQ:INTC)’s revenue, it’s their mobile division. The revenue from that division has dropped 83% from a year ago, to just $53 million, showing the chipmaker still hasn’t figured out how to get meaningfully involved in the mobile arena.
On the other hand, they’re doing a better job of getting in early on one of the next big industry trends, the “Internet of Things”; revenue from that division was up 24% to $539 million in the last quarter. Growth in that sector will be important, as despite the 6% uptick in PC revenue during the last quarter, it’s unlikely that division will maintain sustained growth over a long period of time, and the PC division still represents the bulk of Intel’s revenue; $8.7 billion in the last quarter. IDC has reported that the Internet of Things could be an $8.9 trillion industry by 2020.