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2 Pros Debate: Is Intel A Compelling Buy Or Value Trap?

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2 Pros Debate: Is Intel A Compelling Buy Or Value Trap?

Intel Corporation (NASDAQ: INTC) shares are up more than 9 percent since the start of 2019, and the stock's recent momentum has at least one pro expecting the stock to move above its 52-week high of $57.60.

What Happened

The semiconductor space as a whole looks appealing, but Intel's stock chart stands out as being attractive, Craig Johnson, Piper Jaffray's senior technical research analyst, said during a Monday CNBC "Trading Nation" segment. Taking a step back and looking at Intel's performance since the start of 2014 shows a long-term uptrend pattern, he said. 

Analysts at Morgan Stanley said Friday that Intel's stock could see upside to $64 per share. Intel's return to prior highs implies the stock is already "two-thirds of the way there," Johnson said. Given the market's strength, Intel's stock should "push through" to new highs, Johnson said.

Mark Tepper: Beware The Value Trap

Intel's stock is "cheap for a reason," Strategic Wealth Partners' Mark Tepper responded.

His reasoning: Intel's competitors within the most important segment — the data center — are "eating their lunch." The segment accounts for around 33 percent of Intel's total revenue and boasts higher margins, so weaker sales in the all-important segment make the stock a "value trap," Tepper said. 

"If they're not crushing it in the data center group, I have very little interest in the computing side of the business." 

Related Links:

Morgan Stanley Turns Bullish On Intel, Cites CEO Changeover

Susquehanna Downgrades Intel, Questions Management's Guidance

Latest Ratings for INTC

DateFirmActionFromTo
Apr 2019Wells FargoDowngradesOutperformMarket Perform
Apr 2019NomuraInitiates Coverage OnBuy
Feb 2019Deutsche BankMaintainsBuyBuy

View More Analyst Ratings for INTC
View the Latest Analyst Ratings

Posted-In: CNBC Craig Johnson Mark Tepper Piper JaffrayAnalyst Color Analyst Ratings Tech Media Best of Benzinga

 

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Latest Ratings

StockFirmActionPT
TBKPiperJaffrayDowngrades0.0
RCIScotiabankDowngrades0.0
AGENB. Riley FBRInitiates Coverage On5.0
DTILGoldman SachsInitiates Coverage On24.0
SCPiperJaffrayDowngrades24.0
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