Pay no attention to the noise, and profit at Intel was really wonderful!

Sometimes, even the best revenue you can get lost in the wide market noise.

This was the case with the chip manufacturer Intel (Nasdaq:INTC) on Friday, April 27. As the company reported very strong double hit-and-raise quarter Thursday, which showed strength in all the right places.

Shares of stock jumped 8% higher in after-hours trading as a result. Stocks carried the momentum into the open on Friday.

But shares of Intel have begun to repay these advances, and actually fell into the Red zone on Friday. To the closing, the shares of the stock fell 0.6%.

Why? The broader market noise. In General, the market opened up much higher thanks to strong reports ink. (Nasdaq:weekly news), Microsoft (Nasdaq:msft) and Intel. But the fact that the post-earnings euphoria has cooled down.

There is nothing wrong with that. The markets were in the big move on Thursday, it feeds mainly on strong earnings from Facebook Inc (indexFB). Thus, a small profit on the weekend, was only natural.

But when it comes to shares of broader market noise should be largely ignored. All this makes drowning out correctly-placed optimism fantastic profit, dragging down stock prices and creating a more immediate buying opportunity for long-term-oriented investors.

Here’s a deeper look:

A quarter of Intel was good

Analyzing the numbers, it’s easy that a quarter from Intel was really good.

PC-to-data-oriented economy plays perfectly. PC-centric revenue grew by an anemic 3%, as expected. Because the PC market is largely saturated.

But that anemic growth rather pointless at this stage in the game. Data-centric revenues soared 25% higher, led by strong growth in all key growth markets (in particular, data centers and Internet of things). Better yet, big data, growth-oriented business now accounts for half of total revenue.

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As such, the profile of growth of Total company begins to resemble the data as growth. Total revenues increased in the quarter of 13%.

The return of strong revenue growth accompanied by a return to operating leverage in the business model. It is a strong leverage (total expenditures declined from 36.6% to 32.4%) and lower tax rate drove a 32% increase in revenue this quarter.

These are big numbers for intc. And they are not going away soon.

In the next quarter, it is expected that revenues will increase by 10%, while revenues should grow by more than 30%. This continued strength in the financial company speaks volumes about the improvement of the secular growth prospects of the company.

Intel Shares Is An Attractive Value Proposition

Obviously, INTC succeeds in the transition from PC-centric business to data centric business.

This means that during today’s high rate of growth may slow down over time, they will not rush much, because INTC is gaining influence several secular growth markets. As these markets become more Mature and grow over the next few years, INTC business will grow.

Intel shares less than 14 times guided earnings for this year. What few does not reflect the 30% plus net profit or exposure to high growth markets such as data centers and Internet of things.

I really think that revenue growth can work about 10% per year over the next 5 years. If so, that would put earnings per share in about 5 years 5.60$. The market-average forward earnings multiple of 16 on these 5.60 $earnings involves a four-year forward target price of around$ 90. Discounted at 10% per year, which equates to fair value for$60.

Plus, the stock Intel has a nice, large 2.3% dividend yield, along with being significantly undervalued in relation to domestic growth prospects. As such, not only on INTC to look attractive, but the risk is also significantly limited.

Bottom line stock INTC

The company had a very good quarter and it looks like the company will keep the accounting really good quarter for the foreseeable future, given the improving growth prospects in critical expensive markets such as data centers and Internet of things.

At current levels, shares of INTC looks cheap given the improving prospects for economic growth.

Thus, the purchase of shares seems to be a smart move.

At the time of this writing, Luke Lango was long shares the events of the week, and FB.

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