Here's How to Play Intel Stock Now

The PC market meltdown over the past year hasn't been kind to holders of Intel (NASDAQ: INTC  ) stock, which is down more than 8% since last summer versus a better than 20% gain for the S&P 500.

You know what, though? It could be worse. Intel shares are up more than seven percentage points on the S&P year to date thanks long-overdue gains in the market for mobile chips. The latest example: Samsung, which recently signed on to use Intel's Haswell chipset in future versions of its Galaxy Tab.

But investing is also a game best played in context. How does Intel stock compare to peers Advanced Micro Devices (NYSE: AMD  ) and Texas Instruments (NASDAQ: TXN  ) ? Here's what the numbers say:

Key Statistics
Intel
AMD
Texas Instruments

Current share price

$25.47

$4.09

$36.12

Shares outstanding

4.97 billion

714.5 million

1.11 billion

Market cap

$126.6 billion

$2.9 billion

$40.1 billion

Trailing P/E ratio

12.73

Not available

22.37

PEG ratio

1.21

(1.37)

2.71

Gross margin

60.3%

33.7%

49.3%

Cash from operations

$20.19 billion

($600 million)

$3.33 billion

Sources: S&P Capital IQ and Yahoo! Finance.

And here's what Fools say, going by the data available in our CAPS investor intelligence database:

CAPS Category
Intel
AMD
Texas Instruments

CAPS stars (out of 5)

*****

**

***

Number of CAPS ratings

10,059

3,800

1,659

Bullish CAPS ratings

9,437

3,127

1,530

Bearish CAPS ratings

622

673

129

Bull ratio

93.8%

82.3%

92.2%

Source: Motley Fool CAPS.

Intel gets Fools' highest rating, and for good reason, writes CAPS All-Star chitownjester:

These guys aren't dumb. [They] [w]ill figure out new business models to offset declining PC sales and further take advantage of [the] mobile revolution. Ultrabook gambit failed but too much horsepower and resources -- they will recover. One key driver will be cloud/server. And when the #1 PC (Mac!) runs on your kit, you're doing something right.

Verdict: Intel stock is a buy
Intel has has run dry in the mobile market for so long that it sometimes seems it'll never catch up to all the various ARM Holdings licensees. And yet, looking at Intel's margin and cash flow advantages, I have to believe Haswell's success was inevitable, and that more successes are likely on the way. I'm picking Intel to beat the market over the next year in my CAPS portfolio as a result.

Where do you stand? Let us know what you think of Haswell's prospects versus competitors, and whether you'd buy, sell, or short Intel stock at current prices, using the comments box below.

Don't count your chips just yet
Just how big is Intel's opportunity? In this premium research report on Intel, a Motley Fool analyst explains all of the key topics investors should understand before investing a dime in the chip giant. Click here now to learn more.


Read/Post Comments (3) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 20, 2013, at 10:23 PM, techy46 wrote:

    Kind of funny - PC's Dead and Ultrabook failed but Intel's kicking ass. Gee, maybe everyone will figure out that the PC's Mobile and it really doesn't matter what size screen or OS you want - they're all available with Intel Atom (Silvermont) and iCore (Haswell) Inside. You can take that to the bank and cash it.

  • Report this Comment On June 21, 2013, at 9:24 AM, roguesisland wrote:

    Will you people STOP! with the regurgitated, rehashed, untruthful BS about Intel.

    Bunch of clowns who couldn't research and or offer biased [truthful] material about the company if it meant your livelihood.

    That' where We stand.

    Educate, Really?; Amuse, read Educate; Enrich, untruthful.

  • Report this Comment On June 21, 2013, at 1:19 PM, TMFMileHigh wrote:

    @roguesisland,

    >>Will you people STOP! with the regurgitated, rehashed, untruthful BS about Intel.

    Those are all published reports and verifiable numbers. You are welcome to offer your own case, however. Feel free to lay it out below.

    Thanks for writing and Foolish best,

    Tim

    --

    TMFMileHigh in CAPS and on the boards

    @milehighfool on Twitter

    http://about.me/timbeyers

    http://timbeyers.me

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