5 Best Value Stocks to Buy for the Next Decade

2. Intel Corporation (NASDAQ:INTC)

PE Ratio: 7.75

Number of Hedge Fund Holders: 104

Intel Corporation (NASDAQ:INTC) is an American technology company.

Tech stocks such as Intel Corporation (NASDAQ:INTC) have taken a beating in the recent past due to recessionary fears and supply-chain-related challenges. Intel Corporation (NASDAQ:INTC) maintains a strong market position, as seen by its gross margin of 44.8% and return on equity of 8.8% as of Q2 2022. A strong market presence offers Intel Corporation (NASDAQ:INTC) leverage with its suppliers, giving the company the potential to overcome temporary supply-chain obstacles.

With a PE ratio of 7.75x, analysts think Intel Corporation (NASDAQ:INTC) is trading at a discount of nearly 29% to its fair value. Furthermore, Intel Corporation (NASDAQ:INTC) is a top-tier dividend stock, as seen by the firm’s forward dividend yield of 4.02% as of August 16.

O’Keefe Stevens Advisory Inc. presented its insights on Intel Corporation (NASDAQ:INTC) in its Q1 2022 investor letter:

“Intel announced they are removing stock-based compensation from non-GAAP earnings in 2022 to report results aligning with semiconductor peers. This may seem like a reasonable thing to do as comparability between peers becomes easier. On the other hand, what exactly is the point of adjusted earnings? It is not to conform to some industry norm or because the management teams need to make performance metrics. The point of adjusting earnings is to present results in a light that more closely reflects the actual underlying performance of the business. That is, backing out expenses that might be one-time in nature, such as legal or fire expenses. First off, share-based compensation is an actual expense. Decreasing my ownership stake in a company without receiving any compensation is not free. If a company paid its employees in all stock, would they add back the entire SBC? What a margin profile that would be. Second, should a company be worried about reporting results similar to other companies? Every company is unique. Management should not waste time determining what expenses should be excluded. Run the business, don’t worry about adjusting the numbers.”