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Stocks (from 20) agement is reinvesting its earnings effi-
ciently.”
perpetual CPU rival AMD. Despite bring-
ing in record results for Q421 and full year
2021, the stock has been relatively slug-
gish.
Fundamentals “look good”
In a February 3 “Simply Wall Street” re-
port in Yahoo!/Finance, the headline
shouts: “Intel’s “Fundamentals look pretty
strong. Could the Market be wrong about
the stock?” Intel’s diversification includes Mobileye maker of Advanced Driv-
er Assistance Systems. This is a fleet of Mobileye’s self-driving
cards in Israel. (Intel)
The Yahoo! report was issued two weeks
before the company’s Q421 earnings. Who owns Intel stock?
Yahoo notes that “stock prices are usually According to Wall Street Zen, Intel is
driven by a company’s financial perfor- owned by 61.96% institutional sharehold-
mance over the long term, which in this ers, 5.24% Intel insiders and 32.80%
case looks quite promising.” retail investors.
Focusing on Intel’s Return on Equity Gordon Moore is the largest individual Intel
(ROE), Yahoo says, “To start with, Intel’s shareholder, owning 172.99M shares repre-
ROE looks acceptable. On comparing it senting 4.25% of the company. His shares
with the average industry ROE of 16% the are valued at $7.79B.
company’s ROE looks pretty remarkable.
CNBC “Mad Money” forecaster Jim Cramer
“This certainly adds some context to In- says, “A new CEO is rebuilding it. They will
tel’s decent 13% net income growth seen not make the playoffs this or next year. In-
over the past five years.” stead, pick NVIDIA or AMD.”
Income growth matches industry Split opinion
“As a next step, we compared Intel’s net In the past year, according to StockChase,
income growth with the industry and found 29 stock analysts published opinions about
that the company has a similar growth INTC-Q. 15 analysts recommended to BUY
figure when compared with the industry the stock. 14 analysts recommended to
average growth rate of 16% in the same SELL the stock.
period.”
MarketWatch reported on February 18 re-
Intel has a three-year median payout ratio ported, “Wall Street analysts have been un-
of 27%, according to Yahoo! “This implies happy with Intel’s declining gross margins
that it retains the remaining 73% of its of late, as Gelsinger cuts into profit to build
profits.” out manufacturing capacity.
It also suggests that its dividend is well “With its forecasts Thursday (2/17/22), In-
covered, and “given the decent growth tel executives admitted it will be years until
seen by the company, it looks like man- the investment pays off, though they
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