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Texas Instruments (TXN) Stock Moves -0.16%: What You Should Know

Zacks Equity Research
·3 mins read

Texas Instruments (TXN) closed the most recent trading day at $143.85, moving -0.16% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.4%. Meanwhile, the Dow lost 1.34%, and the Nasdaq, a tech-heavy index, lost 1.57%.

Heading into today, shares of the chipmaker had gained 2.57% over the past month, outpacing the Computer and Technology sector's loss of 0.17% and the S&P 500's loss of 0.46% in that time.

Wall Street will be looking for positivity from TXN as it approaches its next earnings report date. This is expected to be October 20, 2020. In that report, analysts expect TXN to post earnings of $1.25 per share. This would mark a year-over-year decline of 16.11%. Our most recent consensus estimate is calling for quarterly revenue of $3.41 billion, down 9.5% from the year-ago period.

TXN's full-year Zacks Consensus Estimates are calling for earnings of $5.05 per share and revenue of $13.26 billion. These results would represent year-over-year changes of -3.63% and -7.8%, respectively.

Any recent changes to analyst estimates for TXN should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. TXN is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that TXN has a Forward P/E ratio of 28.52 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 28.52.

Also, we should mention that TXN has a PEG ratio of 3.06. 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 was holding an average PEG ratio of 3.02 at yesterday's closing price.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 244, putting it in the bottom 4% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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