Dr. Joe Duarte, technical expert and editor of In the Money Options, chose Texas Instruments (TXN) as his top investment idea for 2019. The stock has since risen 21.4%. Here's his latest update on the chip stock.
I am reiterating my buy rating on Texas Instruments. It remains a premier company in the semiconductor sector; a fact that is especially impressive during a period of time when the industry cycle is on the down side and there is a high level of pressure on tech companies as a result of the U.S.-China trade war.
More from Joe Duarte: Roll with the Market Trend, But Remember that it Will End Badly
Moreover the stock is up nearly 29 percent for the year and is within a few points from its high for the year as many of its competitors recently made new lows, which shows that investors remain interested in owning the shares, as evidenced by aggressive buying on the dips all year.
The company continues to grow its main metric, free cash flow, continues to buy back its shares, and continues to invest in the industrial and automotive sector which is nearly 60% of its book of business while increasing its commitment to R&D due to its deep pockets and its economies of scales such as owning its own factories while expanding its manufacturing capacity further.
Buy Texas Instruments — but exercise caution in the near term due to the potential for major market disruptions due to the economic cycle, the geopolitical situation, and the U.S.-China trade war.
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