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Texas Instruments (TXN) Exceeds Market Returns: Some Facts to Consider
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In the latest trading session, Texas Instruments (TXN - Free Report) closed at $159.97, marking a +1.87% move from the previous day. This change outpaced the S&P 500's 0.39% gain on the day. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.2%.
The chipmaker's shares have seen an increase of 6.69% over the last month, surpassing the Computer and Technology sector's gain of 5.97% and the S&P 500's gain of 5.28%.
The upcoming earnings release of Texas Instruments will be of great interest to investors. The company is forecasted to report an EPS of $1.46, showcasing a 31.46% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $4.11 billion, down 11.92% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.04 per share and a revenue of $17.56 billion, indicating changes of -25.03% and -12.35%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments currently has a Zacks Rank of #4 (Sell).
In the context of valuation, Texas Instruments is at present trading with a Forward P/E ratio of 22.3. Its industry sports an average Forward P/E of 19.5, so one might conclude that Texas Instruments is trading at a premium comparatively.
We can also see that TXN currently has a PEG ratio of 2.48. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Semiconductor - General industry stood at 2.67 at the close of the market yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 39, placing it within the top 16% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Exceeds Market Returns: Some Facts to Consider
In the latest trading session, Texas Instruments (TXN - Free Report) closed at $159.97, marking a +1.87% move from the previous day. This change outpaced the S&P 500's 0.39% gain on the day. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.2%.
The chipmaker's shares have seen an increase of 6.69% over the last month, surpassing the Computer and Technology sector's gain of 5.97% and the S&P 500's gain of 5.28%.
The upcoming earnings release of Texas Instruments will be of great interest to investors. The company is forecasted to report an EPS of $1.46, showcasing a 31.46% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $4.11 billion, down 11.92% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.04 per share and a revenue of $17.56 billion, indicating changes of -25.03% and -12.35%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments currently has a Zacks Rank of #4 (Sell).
In the context of valuation, Texas Instruments is at present trading with a Forward P/E ratio of 22.3. Its industry sports an average Forward P/E of 19.5, so one might conclude that Texas Instruments is trading at a premium comparatively.
We can also see that TXN currently has a PEG ratio of 2.48. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Semiconductor - General industry stood at 2.67 at the close of the market yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 39, placing it within the top 16% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.