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Texas Instruments (TXN) Registers a Bigger Fall Than the Market: Important Facts to Note
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Texas Instruments (TXN - Free Report) closed the latest trading day at $199.99, indicating a -1.78% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.88%. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw a decrease of 1.95%.
Prior to today's trading, shares of the chipmaker had gained 2.33% over the past month. This has lagged the Computer and Technology sector's gain of 9.48% and the S&P 500's gain of 5.11% in that time.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 23, 2024. On that day, Texas Instruments is projected to report earnings of $1.16 per share, which would represent a year-over-year decline of 37.97%. At the same time, our most recent consensus estimate is projecting a revenue of $3.8 billion, reflecting a 16.15% fall from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.13 per share and revenue of $15.74 billion, indicating changes of -27.44% and -10.18%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Texas Instruments is carrying a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Texas Instruments has a Forward P/E ratio of 39.7 right now. This signifies a premium in comparison to the average Forward P/E of 30.1 for its industry.
It is also worth noting that TXN currently has a PEG ratio of 4.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. TXN's industry had an average PEG ratio of 2.7 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 101, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Texas Instruments (TXN) Registers a Bigger Fall Than the Market: Important Facts to Note
Texas Instruments (TXN - Free Report) closed the latest trading day at $199.99, indicating a -1.78% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.88%. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw a decrease of 1.95%.
Prior to today's trading, shares of the chipmaker had gained 2.33% over the past month. This has lagged the Computer and Technology sector's gain of 9.48% and the S&P 500's gain of 5.11% in that time.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 23, 2024. On that day, Texas Instruments is projected to report earnings of $1.16 per share, which would represent a year-over-year decline of 37.97%. At the same time, our most recent consensus estimate is projecting a revenue of $3.8 billion, reflecting a 16.15% fall from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.13 per share and revenue of $15.74 billion, indicating changes of -27.44% and -10.18%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Texas Instruments is carrying a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Texas Instruments has a Forward P/E ratio of 39.7 right now. This signifies a premium in comparison to the average Forward P/E of 30.1 for its industry.
It is also worth noting that TXN currently has a PEG ratio of 4.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. TXN's industry had an average PEG ratio of 2.7 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 101, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.