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Texas Instruments (TXN) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest trading session, Texas Instruments (TXN - Free Report) closed at $207.74, marking a -1.4% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.6%. On the other hand, the Dow registered a loss of 0.39%, and the technology-centric Nasdaq decreased by 1.12%.
Shares of the chipmaker have appreciated by 4.83% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.97% and the S&P 500's gain of 3.15%.
The investment community will be paying close attention to the earnings performance of Texas Instruments in its upcoming release. The company's upcoming EPS is projected at $1.36, signifying a 24.44% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.11 billion, down 9.29% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.11 per share and a revenue of $15.72 billion, representing changes of -27.72% and -10.28%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. At present, Texas Instruments boasts a Zacks Rank of #3 (Hold).
Investors should also note Texas Instruments's current valuation metrics, including its Forward P/E ratio of 41.22. This indicates a premium in contrast to its industry's Forward P/E of 23.93.
Investors should also note that TXN has a PEG ratio of 4.58 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 4.19.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 214, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Texas Instruments (TXN) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Texas Instruments (TXN - Free Report) closed at $207.74, marking a -1.4% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.6%. On the other hand, the Dow registered a loss of 0.39%, and the technology-centric Nasdaq decreased by 1.12%.
Shares of the chipmaker have appreciated by 4.83% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.97% and the S&P 500's gain of 3.15%.
The investment community will be paying close attention to the earnings performance of Texas Instruments in its upcoming release. The company's upcoming EPS is projected at $1.36, signifying a 24.44% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.11 billion, down 9.29% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.11 per share and a revenue of $15.72 billion, representing changes of -27.72% and -10.28%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. At present, Texas Instruments boasts a Zacks Rank of #3 (Hold).
Investors should also note Texas Instruments's current valuation metrics, including its Forward P/E ratio of 41.22. This indicates a premium in contrast to its industry's Forward P/E of 23.93.
Investors should also note that TXN has a PEG ratio of 4.58 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 4.19.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 214, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.