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Shares of Intel Corporation remained positive for the current year as stocks were seen rallying 10%, which gave up most of its year-to-date gains after reporting financial earnings earlier this month.

Intel’s third-quarter earnings report turned into positive after posting record profits. Earnings per share (EPS) stood at 80 cents, adjusted earnings have beaten analysts’ earnings forecast of 8 cents, marking a big beat.  

The company’s sales also topped analysts’ estimates, citing a top line of approximately 9% to $15.8 billion. Analysts are expecting a $15.6 billion revenue.

However, the tech giant’s previous record is quite interesting, but the market would not be convinced with past performance. Hence, the most significant aspect in the market is the future earnings, and the company left investors surprised on this basis.

The company posted its quarterly revenue and stood at $15.7 billion, suggesting below analysts’ expectations, while the sales settled at start-up costs for next-generation manufacturing capabilities.    

It seemed that these potentials are likely lifting the capital expenditures, as well as leveraging investments to boost future profits, which the company is aiming for. Apparently, the market doesn’t seem to witness opportunities in the company after shares declined 7% in the wake of the earnings report on October 18.  

Intel Corporation Shares Rally

Intel Corporation stocks rose 0.37% during the course of Monday’s session as shares stood nearly at $34.87. The company’s stock reached a trading volume of approximately 19.19 million shares, with a simple moving average 50 of -4.32% and a simple moving average 200 of 6.86%.

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Given this appreciation, its market value stood at 165.82 billion, with shares settling at one-year high at $38.36 and the one-year at $27.24.   

Analysts’ Recommendation

The tech giant currently has a mean rating of 2.20, in which 17 analysts affirmed a “Buy” rating on the stock, 9 gave an “Outperform” rating and 12 issued a “Hold” rating.       

Meanwhile, the mean price objective of the stock hit $40.19, while the highest price objective stood at $46.00 and low price objective is $33.00. The mean price objective is measured by the consensus estimate of 34 analysts.  

The quarterly mean revenue forecast settled at $15.73 billion for the month ending December 16, issued by 31 analysts, while the average sales forecast for the year ending December 16 posted $58.79 billion, affirmed by 30 analysts.  

Current Stance of Intel Corporation’s Stocks

The chart below illustrates Intel Corp. stock’s movement after reporting its financial earnings for the fourth quarter.

Given a bearish tone on the company’s stock, it was shown that the stock significantly declined on October 19, which surpassed two support lines in a downward movement. In essence, the stock tried to break out on the downside at support 35.83 and continued with consecutive declines until today’s trade.     

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Conclusion

As the current stance of Intel Corp.’s stocks is in a bearish tone, we conclude that investors’ weren’t convinced enough with the earnings results of the company despite posting above level analysts’ estimate.

Moreover, market participants should still wait on the sidelines until a supporting candle shows up.  

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