Dow Stock Hits 20-Year High Ahead of Quarterly Report

Intel is due to report earnings after the close tomorrow

Managing Editor
Jan 22, 2020 at 3:50 PM
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Joining the busy earnings slate this week is Dow name Intel Corporation (NASDAQ:INTC). The company is scheduled to report after the close tomorrow, Jan. 23. Below we will take a look at how INTC has been faring on the charts, and what the options market is pricing in for post-earnings moves. At last check, the equity is up 3% at $62.28, and earlier touched a 20-year high of $62.48.

Since early October, INTC has seen a healthy leg of support at the 40-day moving average, a trendline that has captured multiple pullbacks as recently as mid-December. Today's lift looks to be an extension off yesterday's slew of bull notes, which included an upgrade to "hold" from "underperform" at Jefferies. Year-over-year, Intel stock is up 29%.

Daily INTC with 40MA

Digging into Intel's earnings history, the stock has closed lower the day after reporting in five of the past eight quarters. During this time frame, Intel stock has averaged a 5.8% swing, regardless of direction. This time around, the options market is estimating larger-than-usual, 7.8% move for Friday's trading.

Analysts have been leaning pessimistic for the tech name. Coming into today, 18 covering analysts sport a "hold" or worse rating, while the stock's average 12-month price target comes in 6% below current trading levels

Lastly, the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.16 sits in the 92nd percentile of its annual range. This means short-term speculators are more put-heavy than usual.

 

 

 

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