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Texas Instruments (TXN) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Texas Instruments (TXN - Free Report) closed at $149.10, marking a +0.38% move from the previous day. This move outpaced the S&P 500's daily gain of 0.16%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq added 0.48%.
Heading into today, shares of the chipmaker had lost 11.46% over the past month, lagging the Computer and Technology sector's loss of 8.85% and the S&P 500's loss of 6.79% in that time.
Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. On that day, Texas Instruments is projected to report earnings of $2.11 per share, which would represent year-over-year growth of 2.93%. Our most recent consensus estimate is calling for quarterly revenue of $4.53 billion, down 1.09% from the year-ago period.
TXN's full-year Zacks Consensus Estimates are calling for earnings of $8.78 per share and revenue of $18.97 billion. These results would represent year-over-year changes of +6.3% and +3.42%, respectively.
Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. Recent revisions tend to reflect the latest 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. 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.
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 0.5% higher. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Texas Instruments has a Forward P/E ratio of 16.91 right now. For comparison, its industry has an average Forward P/E of 9.12, which means Texas Instruments is trading at a premium to the group.
It is also worth noting that TXN currently has a PEG ratio of 1.81. 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 1.79 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% 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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Texas Instruments (TXN) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Texas Instruments (TXN - Free Report) closed at $149.10, marking a +0.38% move from the previous day. This move outpaced the S&P 500's daily gain of 0.16%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq added 0.48%.
Heading into today, shares of the chipmaker had lost 11.46% over the past month, lagging the Computer and Technology sector's loss of 8.85% and the S&P 500's loss of 6.79% in that time.
Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. On that day, Texas Instruments is projected to report earnings of $2.11 per share, which would represent year-over-year growth of 2.93%. Our most recent consensus estimate is calling for quarterly revenue of $4.53 billion, down 1.09% from the year-ago period.
TXN's full-year Zacks Consensus Estimates are calling for earnings of $8.78 per share and revenue of $18.97 billion. These results would represent year-over-year changes of +6.3% and +3.42%, respectively.
Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. Recent revisions tend to reflect the latest 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. 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.
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 0.5% higher. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Texas Instruments has a Forward P/E ratio of 16.91 right now. For comparison, its industry has an average Forward P/E of 9.12, which means Texas Instruments is trading at a premium to the group.
It is also worth noting that TXN currently has a PEG ratio of 1.81. 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 1.79 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% 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.