Intel Corporation (INTC) Set to Make Waves in Mobile

Valuations and Metrics

Looking at valuations, Intel stock certainly has plenty of room to rise. The stock trades at only 12.57 times trailing earnings, substantially lower than Qualcomm’s 17.82 and ARM’s 69.37. On the other hand, the operating margin of 25%, while solid, is under that of the competitors mentioned here. The return on equity of around 21% is pretty good, and the company has plenty of cash to keep investing in product development and manufacturing equipment with about $17.16 billion on the books.

The Bottom Line

Although slow to catch on to the mobile computing market, Intel finally seems to have made the leap with the introduction of several new chips. Reportedly, these chips are both more powerful and more power efficient than competing models, and they should see incorporation in a range of devices. This development may finally be the catalyst Intel needs to break out to the upside, after years of lackluster performance. Additionally, the stock has plenty of upside looking at its current valuation.

The article Intel Set to Make Waves in Mobile originally appeared on Fool.com and is written by Daniel James.

Daniel James has no position in any stocks mentioned. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel and Qualcomm. Daniel is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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