Intel Stock Drop Looks Sharp, But How Deep Can It Go?
Intel (INTC) stock is down 7.4% in a day. The recent slide reflects renewed concerns around Intel retaining its networking and communications unit, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Intel stands today.
- Size: Intel is a $183 Bil company with $53 Bil in revenue currently trading at $40.50.
- Fundamentals: Last 12 month revenue growth of -1.5% and operating margin of -0.2%.
- Liquidity: Has Debt to Equity ratio of 0.31 and Cash to Assets ratio of 0.15
- Valuation: Intel stock is currently trading at P/E multiple of 764.9 and P/EBIT multiple of 53.0
- Has returned (median) -0.2% within a year following sharp dips since 2010. See INTC Dip Buy Analysis.
These metrics point to a Weak operational performance, alongside Moderate valuation – making the stock Unattractive. For details, see Buy or Sell INTC Stock
That brings us to the key consideration for investors worried about this fall: how resilient is INTC stock if markets turn south? This is where our downturn resilience framework comes in. Suppose INTC stock falls another 20-30% to $28 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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- How Much Track Is Left For INTC Stock?
- What Intel Stock Was Signaling About The AI Data Center’s Real Engine
- What Intel Stock Was Saying Before Its 5x Climb
2022 Inflation Shock
- INTC stock fell 63.3% from a high of $68.26 on 9 April 2021 to $25.04 on 11 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $50.76 on 27 December 2023 , and currently trades at $40.50
| INTC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -63.3% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- INTC stock fell 34.8% from a high of $68.47 on 24 January 2020 to $44.61 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
| INTC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -34.8% | -33.9% |
| Time to Full Recovery | Not Fully Recovered | 148 days |
2018 Correction
- INTC stock fell 26.1% from a high of $58.82 on 22 April 2019 to $43.46 on 3 June 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 26 November 2019
| INTC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -26.1% | -19.8% |
| Time to Full Recovery | 176 days | 120 days |
2008 Global Financial Crisis
- INTC stock fell 56.8% from a high of $27.98 on 6 December 2007 to $12.08 on 23 February 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 26 March 2012
| INTC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -56.8% | -56.8% |
| Time to Full Recovery | 1127 days | 1480 days |
Feeling jittery about INTC stock? Consider portfolio approach.
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