Intel Corporation (NASDAQ:INTC) â€” This designer and manufacturer of digital technology platforms was last reviewed by me on Nov. 16 when I recommended it as a buy â€śunder $35â€ť with a trading target at $40.
Despite several successful trades during the year, the highest price since the last review occurred on Jan. 27 at $38.45, where it â€śdouble-toppedâ€ť with the Oct. 5 high at $38.31.
Despite â€śperiods of lumpiness,â€ť higher cloud investments, growth within â€śthe Internet of Thingsâ€ť and increased demand for more powerful memory chips should benefit Intel.
The companyâ€™s recent agreement to purchase MBLY, a leader in the research and development of advanced driver assistance systems, should help Intel cut prices while offering superior autonomous driving platforms.
Standard & Poorâ€™s anticipates that Intelâ€™s cash flow will accelerate, which will enable it to raise its dividend and repurchase shares.
The target for INTC is $41 and is based on a multiple of 13.9X 2018 EPS estimate of $2.94, up from EPS of $2.80 est. for 2017. INTCâ€™s current dividend is $1.04, providing an annualized dividend yield of 2.95%.
For the last year, INTCâ€™s stock has advanced along a bullish support line. In November 2016 that line began to run coincident with the stockâ€™s 200-day moving average. As noted above, the stock â€śdouble-toppedâ€ť at about $38 in January and fell below the support line last week.
However, on Wednesday it reversed up, with a CBR buy signal from my internal proprietary indicator. However, in order to confirm the reversal, it must regain the 200-day moving average now at $35.41. Thus, buy INTC at about $35 with a trading target of $41. A stop-loss order should be placed under the â€śCBR Buyâ€ť at $34.60.
– Sam Collins, Trade of the Day
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Source: Investor Place