118.55 -0.13 (-0.11%)
Pre-Market: 9:01AM EDT
|Bid||117.90 x 1000|
|Ask||119.00 x 1400|
|Day's Range||117.54 - 119.05|
|52 Week Range||87.70 - 120.00|
|Beta (3Y Monthly)||1.26|
|PE Ratio (TTM)||21.55|
|Forward Dividend & Yield||3.08 (2.57%)|
|1y Target Est||N/A|
Texas Instruments (TXN) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
(Bloomberg) -- With the U.S. economic expansion getting longer and longer, nervous investors are pouring money into funds tracking the investment factor known as “quality.” It’s a category whose composition has changed.Gone are the days when having a rock-solid balance-sheet meant you made food, sold clothes or built industrial infrastructure. Now, technology firms are king, with chip manufacturers overrunning the list. The rules are the same -- quality denotes a high return on equity, low debt and lots of free cash flow. But the businesses that qualify have evolved.“These tech companies have kind of grown up and they meet the criteria,” said Nick Kalivas, senior equity product strategist for Invesco Ltd.’s ETF business. “They’re still more cyclical than kind of the old-school quality, so that’s a really interesting dynamic that has surfaced.”For bubble-watchers, it’s another example of how much the market has changed since the dot-com days. Agents of volatility back then, computer and software makers now are some of the oldest and most profitable firms around. Their contribution to the S&P 500’s overall earnings has quadrupled in two decades.Smart-beta ETFs that focus on quality stocks have taken in $3 billion in 2019, the best half-year period on record. As investors question the staying power of the bull run and economic cycle, finding companies with sound finances and profitability has become a priority.The $1.5 billion Invesco S&P 500 Quality ETF, which trades under the ticker SPHQ, devotes more of its cash to technology stocks than any other sector. A Bloomberg Portfolio analysis shows the fund’s tech allocation has steadily risen over the past decade, and now the ETF holds just about double the amount of tech stocks it did at the end of 2009.While much of that is in software and services, semiconductor stocks also have a bigger role. For years, Linear Technology Corp. was the lone semiconductor company that met the criteria for inclusion in the Invesco quality fund. Now there are seven, with popular names such as Applied Materials Inc., Intel Corp., Qualcomm Inc. and Texas Instruments Inc. making the cut. Linear was acquired three years ago and no longer exists.But the inclusion of more cyclical stocks also means the quality factor is experiencing a “step up” in risk, Kalivas said. Tech stocks are by nature higher-beta than their predecessors and that could amplify volatility going up and coming down. At the same time, “it’s hard to get fired for having something that returns a lot on equity, has low debt, and generates a lot of cash,” he said.Volatility has been friendly to quality owners in 2019. The Invesco S&P 500 Quality ETF is up 20% year-to-date, outperforming the broader S&P 500 Index, juiced by the 29% gain in technology stocks. Data compiled by Bloomberg shows that among the five stocks with the most influence on SPHQ, three were tech companies.Whether or not the makeover provides support when the stock market is falling is yet to be seen.“If the academic research plays out, that’s exactly what should happen,” Kalivas said. “They should not have that big downside, their ability to generate cash should support them.”To contact the reporter on this story: Sarah Ponczek in New York at email@example.comTo contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Chris NagiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Of the 25 companies with the highest-paid public company CEOs in the region, 10 had some kind of turnover in the chief executive office since June 2018.
Infineon Technologies IFNNY / IFX is a leading broad-based European chipmaker with nice exposure to secular growth drivers in the industrial and automotive chip sectors. Looking at the automotive chip market, vehicles with advanced powertrain technology and safety systems require a variety of sensors and power management chips supplied by companies like Infineon. Similarly, the company's exposure to power management circuits positions it to benefit from trends in the electronics industry toward power conservation, not only in more efficient devices like industrial drives, but also in green energy solutions like solar panels.
During Tuesday night's Mad Money program, Jim Cramer mentioned that Texas Instruments could benefit from a trade truce with China. In this daily bar chart of TXN, below, we can see that prices have stalled a number of times in the $118-$120 area - not just in the past 12 months but since early 2018 (see the weekly chart, below). Price-wise the daily chart looks strong but trading volume has been declining since January, however, the On-Balance-Volume (OBV) line has only stalled in the past two months.
Amazon's user experience isn't all that, lessons from the history of the handheld calculator business, and why business-to-business technology firms don't get the credit they deserve.
Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date. What Happened? The Dow closed at 828.85. Today, the Dow is trading at 26,727 and the S&P 500 is trading at 2,945. What Else Was Going On In The World?
Fiscal 2019 has been an interesting year for Broadcom (AVGO). Its revenue has fallen due to weak demand in the wireless communications market, but its profit margins have risen due to declining costs. While Broadcom is succeeding in improving its margins, profit is falling in dollar terms because of declining revenue.
After reading Texas Instruments Incorporated's (NASDAQ:TXN) most recent earnings announcement (31 March 2019), I found...
When Texas Instruments Incorporated (NASDAQ:TXN) released its most recent earnings update (31 March 2019), I wanted to...
The BAML survey highlighted the fact that investors are very bearish on growth expectations. A net 50% of the respondents expect global growth to weaken over the next 12 months. A record number of investors said that the global economy was in the late cycle.
(Bloomberg) -- Shares of semiconductor companies rallied on Tuesday as optimism that trade tensions between the U.S. and China could be easing pushed investors to look past a growing consensus that an industry rebound is unlikely to occur in the second half of the year.The Philadelphia semiconductor index advanced as much as 5%, compared with a 1.4% increase in the S&P 500 Index. Among notable gainers, Nvidia Corp. rose 6.8% while Micron Technology Inc. jumped 6.8% and Western Digital Corp. added 6.4%. Texas Instruments Inc. gained 4.2% while Intel Corp. rose 4%.The advance came after President Donald Trump said he had a “very good” phone conversation with Chinese President Xi Jinping and that he would hold an “extended meeting” with him at the G-20 meeting. Trump had previously threatened to raise tariffs if Xi didn’t sit with him at next week’s meeting in Japan.Chipmakers have been highly correlated to the trade issue, as the companies derive a hefty percentage of their revenue from China. The country is also a key part of their supply chains. Recently, semiconductor volatility rose after the Trump administration blacklisted Huawei, a major consumer to a number of semiconductor companies. Last week, Broadcom Inc. cut its full-year sales forecast because of trade risks and its Huawei exposure.“Huawei casts a large shadow,” Stifel analysts wrote on Tuesday. “There is no getting around its significance.” Analyst Brian Chin lowered his estimates for a number of semiconductor companies for the second half of the year, saying that the industry’s “malaise” in May was “now too acute to ignore.”That view was echoed by analysts at KeyBanc Capital Markets in a report dated June 17. The firm wrote that “the recent U.S./China trade war escalation, including the Huawei ban, has dashed hopes for a 2H recovery for broad-based semiconductors.” Analyst Weston Twigg added that a trip to Asia “left us more cautious” on the industry, and that there was an “increased risk to forward estimates” as the trade dispute “has led to a meaningful decline in bookings.”Deutsche Bank analysts recently returned from an Asia trip of their own, emerging “more cautious on the semiconductor and semicap sectors” as a result, “especially given that the often promised H2 rebound is looking increasingly optimistic.”Analyst Rob Sanders wrote that trade tensions were “significantly elevating uncertainty surrounding near- and mid-term business conditions,” and that “in most instances, this uncertainty is acting as a headwind to demand.”The escalation in trade-related tensions came at a time when the industry has already been struggling with weak demand and high inventory levels. According to the Semiconductor Industry Association, total semiconductor sales sank 17.7% in April, its most recent month of data.To contact the reporter on this story: Ryan Vlastelica in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Jennifer Bissell-Linsk, Richard RichtmyerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Broadcom (AVGO) presented their second quarter earnings on Thursday after market close, and the call, as described by CNBC's Jim Cramer, was "truly depressing."
Global equities are under pressure on Friday as traders worry about the fallout from the attack on two energy tankers in the Persian Gulf as well as dismal economic data out of China, where industrial output growth slowed to a 17-year low.Semiconductor stocks are getting hit hard, with the pressure beginning over in Europe with names like Infineon, AMS and STMicroelectronics (NYSE:STM) feeling the hurt after Broadcom (NASDAQ:AVGO) cut forward guidance and warned of a demand slowdown due to a tech ban resulting from U.S.-China trade tensions.All eyes are now turning towards the Federal Reserve's next policy announcement on June 19, with hopes high that officials heed the message of the futures market and prepare for interest rate cuts later this year. The promise of easier credit could help juice the market higher as the economic data worldwide becomes more and more disappointing.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe specter for disappointment is extremely high, however, with history reminding us that the majority of prior Fed interest rate cuts come as a recession is already in flight. If so, the selling could well intensify, led by the makers of the silicon "raw materials" of our modern economy: Semiconductors. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 Here are four stocks in the industry to consider selling: Semiconductor Stocks: Intel (INTC)Intel (NASADQ:INTC) shares continue to languish below their 200-day moving average, marking a 22% decline from the late-April high a continuing a long sideways range going back to late 2017. A breakdown below critical support near the $42-a-share level would result in a likely decline back to the 2016-2017 trading range near $34, which would be worth a loss of more than 25% from here.The company will next report results on July 25 after the close. Analysts are looking for earnings of 90 cents per share on revenues of $15.6 billion. When the company last reported on April 25, earnings of 89 cents per share beat estimates by two cents. Nvidia (NVDA)Nvidia (NASDAQ:NVDA) shares are simply unable to get up off the mat, as the onetime momentum sweetheart languishes near its late December lows and remains well below its 50-day and 200-day moving averages. A slowdown in GPU sales, a loss to AMD (NASDAQ:AMD) on upcoming gaming console refreshes from Sony (NYSE:SNE) and Microsoft (NASDAQ:MSFT), and a popping of the bitcoin bubble have all contributed to the downturn. * 7 High-Quality Cheap Stocks to Buy With $10 The company will next report results on Aug. 15 after the close. Analysts are looking for earnings of $1.14 per share on revenues of $2.6 billion. When the company last reported on May 16, earnings of 88 cents per share beat estimates by seven cents on a 31% drop in revenues. Texas Instruments (TXN)Shares of Texas Instruments (NASDAQ:TXN) are rolling down what looks like the right shoulder of a nasty-looking head-and-shoulders reversal pattern bounced by a neckline that coincides with its 200-day moving average. A breakdown here would trace down to a decline back to its late-December lows, worth a loss of roughly 15% from here. Earlier in the month, analysts at Cascend Research noted that demand for power chips in the industrial, automotive, and consumer products area was weakening at a 18%-plus pace year-over-year. This was the worst result in eight years and will weigh on TXN stock's top line results.The company will next report results on July 23 after the close. Analysts are looking for earnings of $1.22 per share on revenues of $3.6 billion. When the company last reported on April 23, earnings of $1.26 beat estimates by nine cents on a 5.1% decline in revenues. Broadcom (AVGO)Broadcom shares are down sharply, nearly 7% as I write this, testing their 200-day moving average average. Management cut its forward guidance as part of its quarterly earnings report, warning that fiscal 2019 results would be dampened by waning demand and ongoing trade tensions. There are a few silver linings, from 10% expected bump in content growth thanks to the 5G wireless rollout to module wins in the upcoming Apple (NASDAQ:AAPL) iPhone 11. * 7 Stocks to Buy for the Coming Recession The company will next report results on Sept. 12 after the close. When the company last reported on June 13, earnings of $5.21 beat estimates by three cents on a 10% rise in revenues.As of this writing, William Roth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post 4 Semiconductor Stocks to Sell appeared first on InvestorPlace.
We at Insider Monkey have gone over 738 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article, we look at what those funds think of Texas Instruments Incorporated (NASDAQ:TXN) based on that […]
The current trade war tensions with China creates a rare buying opportunity for high-quality tech stocks with excellent long-term growth prospects, observes Jim Pearce, growth stock expert and senior editor of Investing Daily's Personal Finance.
Several semiconductor companies saw shares decline in after-hours trading Thursday following Broadcom Inc.'s earnings report, which suggested a second-half rebound for chips looks less likely. Among stocks falling more than 1% immediately after Broadcom reported were Texas Instruments Inc. , Xilinx Inc. , Skyworks Solutions Inc., Qualcomm Inc. , Qorvo Inc. and Nvidia Corp. Larger chip makers like Intel Corp. , Advanced Micro Devices Inc. and Micron Technology Inc. fell by smaller amounts, closer to 0.5%, though action was jagged amid high volume for the extended session. Broadcom cut its fiscal-year forecast in its second-quarter report after trading closed Thursday, and Chief Executive Hock Tan said in a statement that he sees "a broad-based slowdown in the demand environment." "As a result, our customers are actively reducing their inventory levels, and we are taking a conservative stance for the rest of the year," Tan said. Chip companies earlier this year said that a slowdown would reverse by the second half of the year, but returns since then have created doubts about the timeline. Broadcom shares were down about 7% in after-hours trading.
lead semiconductor stocks lower Wednesday after analysts at Evercore ISI cut their target price on the stock and warned that a global recovery in chip memory demand could be delayed until late next year. Evercore analyst C.J. Muse lowered his target on Lam Research by $30 to $195 per share, and reduced his rating to 'in line' from 'outperform', even as it described the group as a "high quality company with superior earnings power through cycles". Evercore cited excess DRAM and NAND inventories, as well as expected cuts in capital spending from major chipmakers, as driving the delayed sector rebound.
The market has managed to back itself away from imminent danger, bouncing back from a relatively serious stumble from a couple of weeks ago. It's too soon to say stocks will be able to remain out of trouble, though. Aside from a lethargic time of year, the wrong headline could still easily up-end it all.Or, perhaps the market will continue to climb.In an uncertain environment like the one we find ourselves in now, sometimes the right strategic move is to simplify. Step into reliable cash cows, accumulate cash from dividends, and wait for a more opportune time to make risky bets.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe $64,000 question is, of course, which dividend stocks? They certainly aren't all built the same. * 7 Dark Horse Stocks Winning the Race in 2019 Here's a run-down of 10 different dividend stocks to buy, from a variety of industries. Investors won't necessarily need all of them to create a more defensive-minded portfolio, though considering more than one might not be a bad idea either. Dividend Stocks to Buy: Microsoft (MSFT)Source: Shutterstock Dividend Yield: 1.4%The 1.4% yield on shares of software giant Microsoft (NASDAQ:MSFT) stock isn't exactly jaw-dropping. But this name is a healthy combination of income of well-shielded growth that could resist marketwide weakness should trouble arise.The key is the ongoing shift in the company's business model. Rather than sell software via a one-time purchase (and hope that customer chooses Microsoft again when it comes time for an upgrade), Microsoft is increasingly looking to "rent" access to wares for a nominal monthly fee. The end result is reliable recurring revenue driven by everything from its Azure cloud-management platform to its office-productivity suites to games played on its Xbox franchise.The company is a bit cryptic when it comes to explaining how much of its business is repeat business, but of last quarter's $30.6 billion in revenue, "commercial cloud" products like Azure, Office 365 and LinkedIn -- which are subscription-based -- generated $9.6 billion in sales. AbbVie (ABBV)Source: Shutterstock Dividend Yield: 5.5%Drugmaker AbbVie (NYSE:ABBV) has been a tough name to own of late. Shares are down 33% from their early 2018 peak, mostly in response to patent woes. The primary U.S. patent on its Humira -- which accounts for more than half of its sales -- has expired, which threatens a huge chunk of its business.That generic threat (in the U.S. anyway) won't materialize until 2023, however. That's when the recently approved biosimilar Hyrimoz, from Novartis (NYSE:NVS) subsidiary Sandoz will become available. * 7 Stocks to Buy for the Coming Recession That clearly puts a countdown timer on ABBV stock and its capacity to pay a dividend, and other Humira-related patents are scheduled to expire in the meantime. It's mostly incorrect to say that Humira sales are on the verge of collapse, though. In turn, the company shouldn't have any trouble supporting its current dividend for the foreseeable future.The yield? A very attractive 5.5%. Waste Management (WM)Source: Shutterstock Dividend Yield: 1.8%When most investors look for dividend stocks to buy, they first and foremost consider utilities, banks and real estate investment trusts, and for good reason. These types of companies are well suited to drive reliable, recurring revenue that's relatively easy to pass along to shareholders.There's an oft-overlooked area, however, that's even more recession-proof than utility companies are. In good times and bad, humans are always going to produce garbage … as in literal trash.Enter Waste Management (NYSE:WM) -- a company that hasn't failed to grow its top line in any quarter since the beginning of 2016, and has never been in any serious dire straits. Income has grown about as consistently, even if never at breakneck speeds.It's anything but sexy, and the present yield of 1.9% isn't exactly thrilling. Given its defensive nature on top of reinvesting the regular income it offers though, WM stock has averaged an annual return of nearly 19% over the course of the past ten years. Exxon Mobil (XOM)Source: Shutterstock Dividend Yield: 4.6%The good news is, the trouble crude oil prices and energy stocks were in back in 2014 and 2015 is in the past. The bad news is, crude prices are stabilizing (more or less) at values that allow all energy companies to thrive.It's a scenario that actually plays into the hand that a huge name like Exxon Mobil (NYSE:XOM) is holding. It has the size and scale smaller players don't, allowing it to acquire opportunities as they arise while simultaneously allowing it safely hunker down when oil prices slide lower. * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% Factor in the stock's dividend yield of 4.6%, and what you're left with is a healthy name that's not locked into the broad market's up and downs. Texas Instruments (TXN)Source: Shutterstock Dividend Yield: 2.7%Any name in the semiconductor business can be viewed as a liability in the wrong environment. If there's any worthy exception to that line of thinking, though, it's Texas Instruments (NASDAQ:TXN).Its advantage? It doesn't make the CPUs and GPUs and other high-performance tech that consumer and corporations have to have when times are good, but are shunned when times are bad. Rather, Texas Instruments makes a wide variety of simple and complex technological solutions, many of which you utilize every day without even realizing it, and most of which you've never heard of.That's not to suggest Texas Instruments is bulletproof, because it isn't. Its business still ebbs and flows. Those ebbs and flows aren't sea-sickening though, and the edge is taken off of any big swing by its respectable current yield of 2.7%. Kraft Heinz (KHC)Source: Mike Mozart via FlickrDividend Yield: 5.3%Kraft Heinz (NASDAQ:KHC) shares are down a stunning 66% for the past year, with most of that rout stemming from accounting issues that delayed the company's full-year filing until just last Friday. The stock's jump in response barely made a dent in the stock's long-term demise.Analysts still aren't exactly impressed either. Though closing the internal probe of accounting concerns and bringing in a new CEO to lead a rebuilding effort is a step in the right direction, Credit Suisse's Robert Moskow still has "concerns about business distractions and the investment we think the company will need to make in management talent, brand-building, and product innovation as it tries to pivot to topline growth." Stifel's Christopher Growe isn't a fan either. * 10 Stocks to Buy That Could Be Takeover Targets Investors looking for reliable income won't find many better dividend stocks to buy, however. Thanks to its long-term pullback, KHC now yields a solid 5.3%, and is still earning more than enough to pay its dividend.It's also earning enough to finally stop lowering its dividend, which is something of a victory in and of itself. Verizon Communications (VZ)Source: Shutterstock Dividend Yield: 4.2%No good list of dividend stocks to buy can afford to not name at least one telecom play. Verizon Communications (NYSE:VZ) gets the nod this time around, sporting a yield of 4.2%.Wall Street isn't a huge fan, for the record. Its consensus rating is somewhere between a "buy" and a "hold" thanks to a slew of downgrades since the latter part of last year, and the average price target of $59.64 is only about three points better than the stock's present price. The overarching theme from the pros is simply not enough bank for the bucks Verizon is being forced to spend not to get ahead, but just hold its place relative to its competitors.Verizon does have an advantage though. While in retrospect its acquisition of Yahoo (and the melding of it with AOL) was ill-advised, rival AT&T (NYSE:T) finds itself now bogged down by its video entertainment ambitions, while Sprint (NYSE:S) and T-Mobile US (NASDAQ:TMUS) have essentially conceded defeat as standalone entities.In short, Verizon remains the best-of-breed in a business that isn't ever going to go away. Altria Group (MO)Source: Peyri Herrera via Flickr (Modified)Dividend Yield: 6.1%The smoking cessation movement has been gaining traction in the United States for years. Yet, it would be wrong to say Americans are giving up vices. The decline of the cigarette market has of course been offset by vaping and even a growing interest in hookas -- yes, hookas -- as alternative forms of self-indulgence. Meanwhile, the nation is increasingly embracing and legalizing cannabis.Altria Group (NYSE:MO) hasn't overlooked this consumer shift. It now owns a significant piece of marijuana play Cronos Group (NASDAQ:CRON), and though it has actually backed out of the vaping business for the time being, in April the company got the FDA's green light to sell so-called IQOS devices. It's a hybrid of e-cigs and traditional cigarettes. * The 10 Best Stocks for 2019 -- So Far Altria's dividend is going to remain protected for the foreseeable future, and with its current yield of 6.1% the stock gives income investors a lot to like. U.S. Bancorp (USB)Source: Shutterstock Dividend Yield: 2.8%Large banks have struggled of late, along with their stocks.Most of that weakness has been merited. Aside from the occasional (albeit temporary) inversions of the yield curve that threaten the profitability of lending activities, most of the mega-banks appear to have trouble managing their sheer size when business isn't exactly booming.Not so with smaller, regional banks like U.S. Bancorp (NYSE:USB). By avoiding the more volatile pieces of the banking market like mezzanine loans to shaky corporations or an investment-banking business that has to underwrite wobbly startups, U.S. Bancorp actually finds itself better positioned for lethargic future than many of its peers. Reliability counts.At the bank stock's current price, its dividend yield is a solid 2.8%. Ford Motor (F)Source: FordDividend Yield: 6.1%Finally, add carmaker Ford Motor (NYSE:F) to your list of dividend stocks to buy if you're looking for reliable income in the near future. Its current yield is an incredible 6.1%.In retrospect, the doubters were technically right. Though predicted years too early, the company did hit the headwind shareholders expected it to. This year's top line is projected to slide a little lower, while next year's should be flat.Nevertheless, Ford never imploded the way the stock's multiyear, 50% drubbing suggested was in the cards. The company's still making a ton of money, and still passing a bunch of it along to investors. Namely, it's earned $1.30 per share last year, but only paid 59 cents worth of dividends. There's more than a little wiggle room. * 7 Dark Horse Stocks Winning the Race in 2019 Better yet, now that Ford is (finally) regrouping and rethinking the future of mobility, a rekindled wave of demand for its next-generation vehicles could already be brewing.As of this writing, James Brumley held a long position in Ford and AT&T. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Dark Horse Stocks Winning the Race in 2019 * 6 Chinese Stocks to Sell That Are Suffering From a Digital Ad Slowdown * 4 Technology Stocks Blasting Higher Compare Brokers The post 10 Smart Dividend Stocks for the Rest of the Year appeared first on InvestorPlace.
Attractive stocks have exceptional fundamentals. In the case of Texas Instruments Incorporated (NASDAQ:TXN), there's...
Even if trade conflicts ease, chip stock are likely to fall further as memory prices plunge, according to several Street bears.