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Texas Instruments (TXN) Stock Sinks As Market Gains: What You Should Know
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Texas Instruments (TXN - Free Report) closed the most recent trading day at $196.39, moving -1.33% from the previous trading session. This move lagged the S&P 500's daily gain of 0.31%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.48%.
Coming into today, shares of the chipmaker had gained 4.32% in the past month. In that same time, the Computer and Technology sector lost 0.76%, while the S&P 500 lost 0.04%.
Investors will be hoping for strength from Texas Instruments as it approaches its next earnings release. On that day, Texas Instruments is projected to report earnings of $1.95 per share, which would represent year-over-year growth of 8.33%. Our most recent consensus estimate is calling for quarterly revenue of $4.44 billion, up 8.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.94 per share and revenue of $17.95 billion. These totals would mark changes of +33% and +24.09%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Texas Instruments is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Texas Instruments's current valuation metrics, including its Forward P/E ratio of 25.07. Its industry sports an average Forward P/E of 21.88, so we one might conclude that Texas Instruments is trading at a premium comparatively.
We can also see that TXN currently has a PEG ratio of 2.69. 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 3.3 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 54, putting it in the top 22% 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.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.
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Texas Instruments (TXN) Stock Sinks As Market Gains: What You Should Know
Texas Instruments (TXN - Free Report) closed the most recent trading day at $196.39, moving -1.33% from the previous trading session. This move lagged the S&P 500's daily gain of 0.31%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.48%.
Coming into today, shares of the chipmaker had gained 4.32% in the past month. In that same time, the Computer and Technology sector lost 0.76%, while the S&P 500 lost 0.04%.
Investors will be hoping for strength from Texas Instruments as it approaches its next earnings release. On that day, Texas Instruments is projected to report earnings of $1.95 per share, which would represent year-over-year growth of 8.33%. Our most recent consensus estimate is calling for quarterly revenue of $4.44 billion, up 8.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.94 per share and revenue of $17.95 billion. These totals would mark changes of +33% and +24.09%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Texas Instruments is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Texas Instruments's current valuation metrics, including its Forward P/E ratio of 25.07. Its industry sports an average Forward P/E of 21.88, so we one might conclude that Texas Instruments is trading at a premium comparatively.
We can also see that TXN currently has a PEG ratio of 2.69. 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 3.3 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 54, putting it in the top 22% 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.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.