Intel (NASDAQ: INTC) might initially seem like an attractive investment for value-oriented income investors. The chipmaker's stock trades at just 10 times forward earnings and pays a forward dividend yield of 2.7%.
Intel's insider sentiment has also improved since Pat Gelsinger took over as its new CEO in February. Over the past 12 months, Intel's insiders bought nearly twice as many shares as they sold. But during that period, Intel's stock rose just 5% as the S&P 500 advanced nearly 30%. AMD's (NASDAQ: AMD) stock skyrocketed more than 50%. Intel's low valuation and high yield might limit its downside potential, but four red flags could also prevent it from outperforming the market.
Image source: Intel.
Source Fool.com