Intel (INTC) has experienced good growth in recent years by diversifying away from PC-centric businesses, especially finding success in businesses related to data centers which grew due to cloud computing and e-commerce build-outs.

However, over ordering by data center operators last year has led to an inventory correction this year. And INTC’s earnings and stock price have suffered. However, now priced at less than 11X this year’s revised earnings per share (EPS) estimates, with a dividend yield of 2.7%, there is a good margin of safety in the stock now. Even though the nature of the business has changed, INTC remains a solid operator with a very strong balance sheet and good cash flow generation. Buy INTC under $48. My target is $55.

If you are an Inner Circle Subscriber following the Model Portfolio, buy INTC for a 5% position in the Value Sector.