Will Intel Finally Break Out?

Intel-logoWith shares of Intel Corporation (NASDAQ:INTC) trading at around $20.51, is INTC an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

 C = Catalyst for the Stock’s Movement

Have you ever walked beside a river on relatively flat terrain? If you have an appreciation for the outdoors, then the answer will most likely be yes. However, have you ever walked beside a river on relatively flat terrain for years? How about a decade? Of course not. Even those who have traversed the Appalachian Trail would be unable to accomplish such a feat.  But if you have been an investor in Intel for the past decade, then you understand completely. The irony is that Intel has still been a solid investment over that timeframe, which has everything to do with dividend payments. Currently, Intel is yielding 4.50 percent.

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As far as growth is concerned, we have seen quality results on an annual basis, but the future is more important. Intel plans to be more innovative in the PC market going forward. While the PC will always be around because you can accomplish so much on it, the PC isn’t a strong growth area. Intel might as well have plans to make the VCR cool again. Okay, maybe that’s a bit rough. And Intel has a pretty good track record when it comes to accomplishing specific goals. It should also be noted that Intel is about to become a bigger player in the mobile market. New chips for mobile devices will be out next year. Of course, there is tremendous potential for growth in that arena.

In regards to Intel Ultrabooks, if you visit BestBuy’s (NYSE:BBY) website, you will see that the average consumer rating for Intel Ultrabooks is four stars out of five stars. This is a solid yet unspectacular number. Unfortunately, expectations were spectacular.

Now let’s take a look at some important numbers for Intel before forming a conclusion.