Why Intel Is Leading the Dow Today

The Dow Jones Industrial Average isn't going anywhere today, but Intel is another story.

Apr 3, 2014 at 3:30PM

Stock markets are moving sideways today, and with 30 minutes left in trading, the Dow Jones Industrial Average (DJINDICES:^DJI) sits at breakeven for the day.

Today's economic data showed that seasonally adjusted jobless claims rose 16,000 last week to 326,000, in the range we've been in for well over a year. The trade deficit also rose 7.7% in February to $42.3 billion, which economists worry could impact GDP growth.

But the bigger factor putting investors on edge is tomorrow's jobs report. Briefing.com forecasts that in March, the economy added 185,000 jobs in March and the unemployment rate came to 6.6%. An hour before trading begins tomorrow morning, the Department of Labor will release last month's employment numbers, and that could drive trading for the day.

Intel leads the Dow today
There aren't many big movers on the Dow today, but one is Intel (NASDAQ:INTC), up 1.8% late in trading. The catalyst was an upgrade from analysts at Piper Jaffray, who upped the stock to an overweight rating.

Intc Wearable Image

Intel's growth hinges on wearable devices like this one. Image courtesy of Intel.

Stocks can often move up or down based on analyst predictions, but what investors should take notice of is the improving sentiment in the PC and mobile-device markets. The analyst projects that first-quarter notebook and direct-server shipments will show year over year declines, which is a positive in a struggling PC market.

The real upside at Intel is in mobile devices and an emerging number of wearables. Intel's 14 nanometer line of processors will come out later this year, and if it can gain any sort of traction in mobiles or wearables, it will mean pure upside for Intel in a market where it has trailed competitors by a wide margin.

With Intel trading at 14 times trailing earnings and paying a 3.5% dividend yield, I still think there's great value in the stock. Strong earnings power in existing businesses and over $20 billion in cash mean the downside for the stock is limited, and the upside is winning contracts for new products that will be launched in the next year.

In a market that looks overvalued in a lot of ways, Intel provides good upside potential with value that traditional investors should love.

Boost your 2014 returns with The Motley Fool's top stock
Intel is a good buy today and if you want another hot tip we have just the stock for you. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Travis Hoium manages an account that owns shares of Intel. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers