Wednesday, April 6, 2011

Time to Buy Intel (INTC)?

With the energy sector and commodity stocks attracting a lot of attention lately, some companies in the tech sector have been trading at low valuations, offering what appears to be good buying opportunities, like with Intel (NASDAQ:INTC).

Earnings estimates for Intel are just over $2 a share in 2011, so the PE ratio is approximately 11 on them at this time.

Add to that the dividend the company offers of 72 cents annually, and you get another nice perk. That's a yield of 3.4 percent.

Intel shares have been trading in a range between $17.60 to $24.37 over the past 52 weeks. The 50 day moving average is $21.03 and the 200 day moving average is $20.23.

Because Intel's shares have been under pressure recently and are trading below the 50 and 200 day moving averages, buying incrementally in order to take advantage of expected dips would be a good strategy.

Intel was trading at $19.83, gaining $0.12, or 0.63 percent, as of 1:39 PM EDT.

No comments: