Texas Instruments (TXN) Declines More Than Market: Some Information for Investors
Texas Instruments (TXN) closed at $163.88 in the latest trading session, marking a -0.6% move from the prior day. This change lagged the S&P 500's 0.37% loss on the day. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, lost 0.19%.
Coming into today, shares of the chipmaker had lost 1.52% in the past month. In that same time, the Computer and Technology sector gained 1.22%, while the S&P 500 gained 1.56%.
The investment community will be closely monitoring the performance of Texas Instruments in its forthcoming earnings report. The company is scheduled to release its earnings on January 23, 2024. On that day, Texas Instruments is projected to report earnings of $1.46 per share, which would represent a year-over-year decline of 31.46%. Alongside, our most recent consensus estimate is anticipating revenue of $4.11 billion, indicating a 11.92% downward movement from the same quarter last year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.32% downward. Texas Instruments is currently a Zacks Rank #4 (Sell).
With respect to valuation, Texas Instruments is currently being traded at a Forward P/E ratio of 25.22. This expresses a premium compared to the average Forward P/E of 22.69 of its industry.
We can also see that TXN currently has a PEG ratio of 2.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 3.05.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 228, placing it within the bottom 10% of over 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.
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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
