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Texas Instruments (TXN) Outpaces Stock Market Gains: What You Should Know

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Texas Instruments (TXN - Free Report) closed the most recent trading day at $197.50, moving +1.22% from the previous trading session. This change outpaced the S&P 500's 0.85% gain on the day.

Coming into today, shares of the chipmaker had gained 4.72% in the past month. In that same time, the Computer and Technology sector gained 1.96%, while the S&P 500 lost 0.37%.

TXN will be looking to display strength as it nears its next earnings release. On that day, TXN is projected to report earnings of $2.04 per share, which would represent year-over-year growth of 40.69%. Our most recent consensus estimate is calling for quarterly revenue of $4.65 billion, up 21.73% from the year-ago period.

TXN's full-year Zacks Consensus Estimates are calling for earnings of $7.86 per share and revenue of $17.94 billion. These results would represent year-over-year changes of +31.66% and +24.05%, 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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. TXN is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, TXN currently has a Forward P/E ratio of 24.83. Its industry sports an average Forward P/E of 24.6, so we one might conclude that TXN is trading at a premium comparatively.

Meanwhile, TXN's PEG ratio is currently 2.66. 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 currently had an average PEG ratio of 2.66 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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