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Texas Instruments (TXN) Outperforms Broader Market: What You Need to Know
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In the latest trading session, Texas Instruments (TXN - Free Report) closed at $202.41, marking a +1.31% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.07% for the day. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 2.17%.
Shares of the chipmaker have appreciated by 1.29% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.16% and lagging the S&P 500's gain of 2.92%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company is expected to report EPS of $1.36, down 24.44% from the prior-year quarter. 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 full year, the Zacks Consensus Estimates are projecting earnings of $5.11 per share and revenue of $15.72 billion, which would represent changes of -27.72% and -10.28%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. At present, Texas Instruments boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Texas Instruments is presently trading at a Forward P/E ratio of 39.09. Its industry sports an average Forward P/E of 20.45, so one might conclude that Texas Instruments is trading at a premium comparatively.
It's also important to note that TXN currently trades at a PEG ratio of 4.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TXN's industry had an average PEG ratio of 3.86 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 201, this industry ranks in the bottom 21% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Texas Instruments (TXN) Outperforms Broader Market: What You Need to Know
In the latest trading session, Texas Instruments (TXN - Free Report) closed at $202.41, marking a +1.31% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.07% for the day. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 2.17%.
Shares of the chipmaker have appreciated by 1.29% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.16% and lagging the S&P 500's gain of 2.92%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company is expected to report EPS of $1.36, down 24.44% from the prior-year quarter. 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 full year, the Zacks Consensus Estimates are projecting earnings of $5.11 per share and revenue of $15.72 billion, which would represent changes of -27.72% and -10.28%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. At present, Texas Instruments boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Texas Instruments is presently trading at a Forward P/E ratio of 39.09. Its industry sports an average Forward P/E of 20.45, so one might conclude that Texas Instruments is trading at a premium comparatively.
It's also important to note that TXN currently trades at a PEG ratio of 4.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TXN's industry had an average PEG ratio of 3.86 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 201, this industry ranks in the bottom 21% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 follow all of these stock-moving metrics, and many more, on Zacks.com.