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Texas Instruments (TXN) Gains But Lags Market: What You Should Know
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Texas Instruments (TXN - Free Report) closed at $151.51 in the latest trading session, marking a +0.34% move from the prior day. The stock lagged the S&P 500's daily gain of 1.14%. At the same time, the Dow added 1.12%, and the tech-heavy Nasdaq gained 0.05%.
Texas Instruments will be looking to display strength as it nears 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.11 billion, up 10.16% from the year-ago period.
TXN's full-year Zacks Consensus Estimates are calling for earnings of $9.35 per share and revenue of $20.08 billion. These results would represent year-over-year changes of +13.2% and +9.44%, respectively.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 16.15. Its industry sports an average Forward P/E of 8.89, 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 1.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TXN's industry had an average PEG ratio of 1.69 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 207, which puts it in the bottom 18% 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.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.
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Texas Instruments (TXN) Gains But Lags Market: What You Should Know
Texas Instruments (TXN - Free Report) closed at $151.51 in the latest trading session, marking a +0.34% move from the prior day. The stock lagged the S&P 500's daily gain of 1.14%. At the same time, the Dow added 1.12%, and the tech-heavy Nasdaq gained 0.05%.
Texas Instruments will be looking to display strength as it nears 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.11 billion, up 10.16% from the year-ago period.
TXN's full-year Zacks Consensus Estimates are calling for earnings of $9.35 per share and revenue of $20.08 billion. These results would represent year-over-year changes of +13.2% and +9.44%, respectively.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 16.15. Its industry sports an average Forward P/E of 8.89, 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 1.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TXN's industry had an average PEG ratio of 1.69 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 207, which puts it in the bottom 18% 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.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.