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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 at $157.29 in the latest trading session, marking a -1.66% move from the prior day. This move lagged the S&P 500's daily loss of 1.37%. Elsewhere, the Dow lost 1.29%, while the tech-heavy Nasdaq lost 1.87%.

Heading into today, shares of the chipmaker had lost 5.82% over the past month, lagging the Computer and Technology sector's loss of 4.68% and the S&P 500's loss of 4.93% 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 24, 2023. On that day, Texas Instruments is projected to report earnings of $1.82 per share, which would represent 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 help to show the ever-changing nature of near-term business trends. 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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. Texas Instruments is currently a Zacks Rank #3 (Hold).

Investors should also note Texas Instruments's current valuation metrics, including its Forward P/E ratio of 21.82. Its industry sports an average Forward P/E of 18.78, 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 2.34 right now. 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 2.73 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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