Texas Instruments (TXN) Dips More Than Broader Markets: What You Should Know
Texas Instruments (TXN) closed at $190.27 in the latest trading session, marking a -1.54% move from the prior day. This move lagged the S&P 500's daily loss of 0.75%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, lost 0.23%.
Prior to today's trading, shares of the chipmaker had gained 2.12% over the past month. This has outpaced the Computer and Technology sector's loss of 2.28% and the S&P 500's loss of 0.13% in that time.
Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. On that day, Texas Instruments is projected to report earnings of $1.95 per share, which would represent year-over-year growth of 8.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.44 billion, up 8.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.94 per share and revenue of $17.95 billion. These totals would mark changes of +33% and +24.09%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 24.34. Its industry sports an average Forward P/E of 20.64, so we one might conclude that Texas Instruments is trading at a premium comparatively.
Investors should also note that TXN has a PEG ratio of 2.61 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor - General stocks are, on average, holding a PEG ratio of 3 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
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