Texas Instruments (TXN) Increases Despite Market Slip: Here's What You Need to Know
In the latest market close, Texas Instruments (TXN) reached $172.52, with a +0.81% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.65%. On the other hand, the Dow registered a loss of 0.49%, and the technology-centric Nasdaq decreased by 0.96%.
The chipmaker's stock has climbed by 6.49% in the past month, exceeding the Computer and Technology sector's gain of 2.19% and the S&P 500's gain of 3.27%.
Market participants will be closely following the financial results of Texas Instruments in its upcoming release. The company is forecasted to report an EPS of $1.06, showcasing a 42.7% downward movement from the corresponding quarter of the prior 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 entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.17 per share and a revenue of $15.91 billion, representing changes of -26.87% and -9.19%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.18% lower within the past month. Currently, Texas Instruments is carrying a Zacks Rank of #5 (Strong Sell).
Investors should also note Texas Instruments's current valuation metrics, including its Forward P/E ratio of 33.13. This indicates a premium in contrast to its industry's Forward P/E of 29.44.
We can additionally observe that TXN currently boasts a PEG ratio of 3.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - General industry had an average PEG ratio of 2.6 as trading concluded yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 210, finds itself in the bottom 17% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
