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Texas Instruments (TXN) Suffers a Larger Drop Than the General Market: Key Insights
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Texas Instruments (TXN - Free Report) closed the latest trading day at $201.55, indicating a -1.2% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.3%. Elsewhere, the Dow saw a downswing of 0.54%, while the tech-heavy Nasdaq appreciated by 0.25%.
Prior to today's trading, shares of the chipmaker had gained 10.83% over the past month. This has outpaced the Computer and Technology sector's gain of 1.22% and the S&P 500's gain of 3.42% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Texas Instruments in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.36, marking a 24.44% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.11 billion, reflecting a 9.29% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $5.11 per share and a revenue of $15.72 billion, demonstrating changes of -27.72% and -10.28%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Texas Instruments. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. As of now, Texas Instruments holds a Zacks Rank of #3 (Hold).
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 39.91. This signifies a premium in comparison to the average Forward P/E of 21.15 for its industry.
It's also important to note that TXN currently trades at a PEG ratio of 4.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 4.01.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 219, positioning it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank is ordered 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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Texas Instruments (TXN) Suffers a Larger Drop Than the General Market: Key Insights
Texas Instruments (TXN - Free Report) closed the latest trading day at $201.55, indicating a -1.2% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.3%. Elsewhere, the Dow saw a downswing of 0.54%, while the tech-heavy Nasdaq appreciated by 0.25%.
Prior to today's trading, shares of the chipmaker had gained 10.83% over the past month. This has outpaced the Computer and Technology sector's gain of 1.22% and the S&P 500's gain of 3.42% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Texas Instruments in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.36, marking a 24.44% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.11 billion, reflecting a 9.29% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $5.11 per share and a revenue of $15.72 billion, demonstrating changes of -27.72% and -10.28%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Texas Instruments. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. As of now, Texas Instruments holds a Zacks Rank of #3 (Hold).
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 39.91. This signifies a premium in comparison to the average Forward P/E of 21.15 for its industry.
It's also important to note that TXN currently trades at a PEG ratio of 4.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 4.01.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 219, positioning it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank is ordered 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.