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Why Texas Instruments (TXN) Outpaced the Stock Market Today
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Texas Instruments (TXN - Free Report) closed the latest trading day at $203.43, indicating a +0.91% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.01% for the day. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.08%.
Heading into today, shares of the chipmaker had lost 0.11% over the past month, lagging the Computer and Technology sector's gain of 1.03% and the S&P 500's gain of 1.21% in that time.
Market participants will be closely following the financial results of Texas Instruments in its upcoming release. The company plans to announce its earnings on October 22, 2024. The company's earnings per share (EPS) are projected to be $1.36, reflecting a 24.44% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $4.11 billion, down 9.29% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.11 per share and a revenue of $15.72 billion, indicating changes of -27.72% and -10.28%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Texas Instruments. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained stagnant. Texas Instruments is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Texas Instruments is presently being traded at a Forward P/E ratio of 39.44. Its industry sports an average Forward P/E of 25.71, so one might conclude that Texas Instruments is trading at a premium comparatively.
Meanwhile, TXN's PEG ratio is currently 4.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - General was holding an average PEG ratio of 3.93 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 155, this industry ranks in the bottom 39% of all industries, numbering over 250.
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.
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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Why Texas Instruments (TXN) Outpaced the Stock Market Today
Texas Instruments (TXN - Free Report) closed the latest trading day at $203.43, indicating a +0.91% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.01% for the day. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.08%.
Heading into today, shares of the chipmaker had lost 0.11% over the past month, lagging the Computer and Technology sector's gain of 1.03% and the S&P 500's gain of 1.21% in that time.
Market participants will be closely following the financial results of Texas Instruments in its upcoming release. The company plans to announce its earnings on October 22, 2024. The company's earnings per share (EPS) are projected to be $1.36, reflecting a 24.44% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $4.11 billion, down 9.29% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.11 per share and a revenue of $15.72 billion, indicating changes of -27.72% and -10.28%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Texas Instruments. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained stagnant. Texas Instruments is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Texas Instruments is presently being traded at a Forward P/E ratio of 39.44. Its industry sports an average Forward P/E of 25.71, so one might conclude that Texas Instruments is trading at a premium comparatively.
Meanwhile, TXN's PEG ratio is currently 4.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - General was holding an average PEG ratio of 3.93 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 155, this industry ranks in the bottom 39% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.