We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Texas Instruments (TXN) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
Texas Instruments (TXN - Free Report) closed at $177.55 in the latest trading session, marking a -1.29% move from the prior day. This change lagged the S&P 500's daily loss of 0.41%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 4.08%.
Coming into today, shares of the chipmaker had gained 2.36% in the past month. In that same time, the Computer and Technology sector gained 9.46%, while the S&P 500 gained 6.51%.
Texas Instruments will be looking to display strength as it nears its next earnings release, which is expected to be April 25, 2023. The company is expected to report EPS of $1.76, down 25.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.36 billion, down 11.07% from the prior-year quarter.
TXN's full-year Zacks Consensus Estimates are calling for earnings of $7.53 per share and revenue of $18.11 billion. These results would represent year-over-year changes of -19.81% and -9.6%, respectively.
Investors should also note any recent changes to analyst estimates for Texas Instruments. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Texas Instruments currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 23.89. For comparison, its industry has an average Forward P/E of 18.44, 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 2.56. 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. TXN's industry had an average PEG ratio of 3.01 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 166, which puts it in the bottom 35% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Texas Instruments (TXN) Dips More Than Broader Markets: What You Should Know
Texas Instruments (TXN - Free Report) closed at $177.55 in the latest trading session, marking a -1.29% move from the prior day. This change lagged the S&P 500's daily loss of 0.41%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 4.08%.
Coming into today, shares of the chipmaker had gained 2.36% in the past month. In that same time, the Computer and Technology sector gained 9.46%, while the S&P 500 gained 6.51%.
Texas Instruments will be looking to display strength as it nears its next earnings release, which is expected to be April 25, 2023. The company is expected to report EPS of $1.76, down 25.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.36 billion, down 11.07% from the prior-year quarter.
TXN's full-year Zacks Consensus Estimates are calling for earnings of $7.53 per share and revenue of $18.11 billion. These results would represent year-over-year changes of -19.81% and -9.6%, respectively.
Investors should also note any recent changes to analyst estimates for Texas Instruments. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Texas Instruments currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 23.89. For comparison, its industry has an average Forward P/E of 18.44, 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 2.56. 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. TXN's industry had an average PEG ratio of 3.01 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 166, which puts it in the bottom 35% 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.