Texas Instruments (TXN) Beats Stock Market Upswing: What Investors Need to Know
Texas Instruments (TXN) ended the recent trading session at $172.59, demonstrating a +1.54% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.32%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.2%.
Shares of the chipmaker witnessed a gain of 3.6% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.04% and the S&P 500's gain of 5.11%.
The upcoming earnings release of Texas Instruments will be of great interest to investors. It is anticipated that the company will report an EPS of $1.06, marking a 42.7% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $3.61 billion, down 17.65% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.17 per share and revenue of $15.91 billion, which would represent changes of -26.87% and -9.19%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.18% lower. Texas Instruments is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that Texas Instruments has a Forward P/E ratio of 32.91 right now. This signifies a premium in comparison to the average Forward P/E of 29.44 for its industry.
Investors should also note that TXN has a PEG ratio of 3.66 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 2.52.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 153, positioning it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
