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Texas Instruments (TXN) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Texas Instruments (TXN - Free Report) closed at $139.68, marking a -0.68% move from the previous day. This change lagged the S&P 500's daily loss of 0.46%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 1.25%.

Coming into today, shares of the chipmaker had gained 0.95% in the past month. In that same time, the Computer and Technology sector gained 2.23%, while the S&P 500 gained 1%.

Investors will be hoping for strength from TXN as it approaches its next earnings release. On that day, TXN is projected to report earnings of $1.25 per share, which would represent 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.05 per share and revenue of $13.26 billion, which would represent changes of -3.63% and -7.8%, respectively, from the prior year.

Any recent changes to analyst estimates for TXN should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TXN is currently a Zacks Rank #1 (Strong Buy).

Investors should also note TXN's current valuation metrics, including its Forward P/E ratio of 27.84. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 27.84.

Meanwhile, TXN's PEG ratio is currently 2.98. 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. 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 industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 24% 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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