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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 $159.95, marking a +0.59% move from the previous day. This change outpaced the S&P 500's 0.01% gain on the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.67%.
Heading into today, shares of the chipmaker had lost 6.37% over the past month, lagging the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.45% in that time.
Texas Instruments will be looking to display strength as it nears its next earnings release. In that report, analysts expect Texas Instruments to post earnings of $1.82 per share. This would mark a year-over-year decline of 25.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.57 billion, down 12.86% from the year-ago period.
TXN's full-year Zacks Consensus Estimates are calling for earnings of $7.33 per share and revenue of $18.03 billion. These results would represent year-over-year changes of -21.94% and -9.96%, respectively.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% lower. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Texas Instruments's current valuation metrics, including its Forward P/E ratio of 21.7. Its industry sports an average Forward P/E of 21.26, so we one might conclude that Texas Instruments is trading at a premium comparatively.
Investors should also note that TXN has a PEG ratio of 2.32 right now. 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 2.67 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 34, which puts it in the top 14% 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 $159.95, marking a +0.59% move from the previous day. This change outpaced the S&P 500's 0.01% gain on the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.67%.
Heading into today, shares of the chipmaker had lost 6.37% over the past month, lagging the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.45% in that time.
Texas Instruments will be looking to display strength as it nears its next earnings release. In that report, analysts expect Texas Instruments to post earnings of $1.82 per share. This would mark a year-over-year decline of 25.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.57 billion, down 12.86% from the year-ago period.
TXN's full-year Zacks Consensus Estimates are calling for earnings of $7.33 per share and revenue of $18.03 billion. These results would represent year-over-year changes of -21.94% and -9.96%, respectively.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% lower. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Texas Instruments's current valuation metrics, including its Forward P/E ratio of 21.7. Its industry sports an average Forward P/E of 21.26, so we one might conclude that Texas Instruments is trading at a premium comparatively.
Investors should also note that TXN has a PEG ratio of 2.32 right now. 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 2.67 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 34, which puts it in the top 14% 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.