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Texas Instruments (TXN) Dips More Than Broader Markets: What You Should Know
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Texas Instruments (TXN - Free Report) closed the most recent trading day at $151.55, moving -1.24% from the previous trading session. This move lagged the S&P 500's daily loss of 0.33%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Prior to today's trading, shares of the chipmaker had lost 5.66% over the past month. This has was narrower than the Computer and Technology sector's loss of 14.71% and the S&P 500's loss of 11.67% in that time.
Investors will be hoping for strength from Texas Instruments as it approaches its next earnings release, which is expected to be October 25, 2022. On that day, Texas Instruments is projected to report earnings of $2.37 per share, which would represent year-over-year growth of 14.49%. Our most recent consensus estimate is calling for quarterly revenue of $5.11 billion, up 10.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.35 per share and revenue of $20.08 billion. These totals would mark changes of +13.2% and +9.44%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Texas Instruments is holding a Forward P/E ratio of 16.41. For comparison, its industry has an average Forward P/E of 8.84, 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 1.76. 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. TXN's industry had an average PEG ratio of 1.68 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 222, which puts it in the bottom 12% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Texas Instruments (TXN) Dips More Than Broader Markets: What You Should Know
Texas Instruments (TXN - Free Report) closed the most recent trading day at $151.55, moving -1.24% from the previous trading session. This move lagged the S&P 500's daily loss of 0.33%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Prior to today's trading, shares of the chipmaker had lost 5.66% over the past month. This has was narrower than the Computer and Technology sector's loss of 14.71% and the S&P 500's loss of 11.67% in that time.
Investors will be hoping for strength from Texas Instruments as it approaches its next earnings release, which is expected to be October 25, 2022. On that day, Texas Instruments is projected to report earnings of $2.37 per share, which would represent year-over-year growth of 14.49%. Our most recent consensus estimate is calling for quarterly revenue of $5.11 billion, up 10.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.35 per share and revenue of $20.08 billion. These totals would mark changes of +13.2% and +9.44%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Texas Instruments is holding a Forward P/E ratio of 16.41. For comparison, its industry has an average Forward P/E of 8.84, 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 1.76. 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. TXN's industry had an average PEG ratio of 1.68 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 222, which puts it in the bottom 12% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.