Posted 2/18/2024, 2:05:38 PM
Intel Stock Drops Despite Profitability Efforts Amid Broader Tech Woes
- Intel's share price has dropped 9.6% recently due to negative market sentiment, despite mixed financials
- Intel's return on equity (ROE) is only 1.5%, much lower than the industry average of 15%, indicating low profitability
- Intel's earnings have shrunk 27% over the past 5 years while the industry has grown earnings by 27%
- Intel retains 71% of its profits, which would normally indicate potential for earnings growth, but earnings have still declined
- Analysts forecast Intel's ROE to rise to 8.8% over the next 3 years, which may improve earnings growth prospects