Do Not Buy Intel Stock Ahead of Earnings Due to Stretched Valuation and Volatility

5 days ago

Parkev Tatevosian, CFA

"So, to answer the question, should investors buy Intel stock going into the earnings release? I don't see any urgency to do that. And especially when you combine the fact that the earnings release and the trading days following the earnings release tend to bring the most volatility to a stock price, with the additional volatility surrounding an earnings release coupled with the fact that the valuation already looks stretched, I would say no. I wouldn't be buying Intel stock ahead of the earnings release. I would wait for the figures to come out. Take some time to digest the financial figures and the updates from management."

The speaker advises against buying Intel stock before the earnings release, citing the heightened volatility typically seen post-earnings along with a stretched valuation relative to his intrinsic value calculation. He suggests waiting for the earnings figures and management updates to drive a more informed decision.

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