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Texas Instruments (TXN) Gains As Market Dips: What You Should Know
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Texas Instruments (TXN - Free Report) closed the most recent trading day at $168.75, moving +0.64% from the previous trading session. This change outpaced the S&P 500's 0.45% loss on the day. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 3.58%.
Coming into today, shares of the chipmaker had lost 4.88% in the past month. In that same time, the Computer and Technology sector gained 7.46%, while the S&P 500 gained 5.01%.
Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. In that report, analysts expect Texas Instruments to post earnings of $1.76 per share. This would mark a year-over-year decline of 28.16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.36 billion, down 16.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.48 per share and revenue of $17.93 billion, which would represent changes of -20.34% and -10.49%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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. Over the past month, the Zacks Consensus EPS estimate 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 22.41. Its industry sports an average Forward P/E of 22.41, so we one might conclude that Texas Instruments is trading at a no noticeable deviation comparatively.
Also, we should mention that TXN has a PEG ratio of 2.4. 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. The Semiconductor - General industry currently had an average PEG ratio of 2.4 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 115, which puts it in the top 46% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Texas Instruments (TXN) Gains As Market Dips: What You Should Know
Texas Instruments (TXN - Free Report) closed the most recent trading day at $168.75, moving +0.64% from the previous trading session. This change outpaced the S&P 500's 0.45% loss on the day. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 3.58%.
Coming into today, shares of the chipmaker had lost 4.88% in the past month. In that same time, the Computer and Technology sector gained 7.46%, while the S&P 500 gained 5.01%.
Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. In that report, analysts expect Texas Instruments to post earnings of $1.76 per share. This would mark a year-over-year decline of 28.16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.36 billion, down 16.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.48 per share and revenue of $17.93 billion, which would represent changes of -20.34% and -10.49%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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. Over the past month, the Zacks Consensus EPS estimate 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 22.41. Its industry sports an average Forward P/E of 22.41, so we one might conclude that Texas Instruments is trading at a no noticeable deviation comparatively.
Also, we should mention that TXN has a PEG ratio of 2.4. 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. The Semiconductor - General industry currently had an average PEG ratio of 2.4 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 115, which puts it in the top 46% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.