Texas Instruments (TXN) Gains But Lags Market: What You Should Know
In the latest trading session, Texas Instruments (TXN) closed at $177.13, marking a +1.57% move from the previous day. This change lagged the S&P 500's 1.76% gain on the day. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 3.03%.
Heading into today, shares of the chipmaker had lost 2.3% over the past month, outpacing the Computer and Technology sector's loss of 3.3% and the S&P 500's loss of 5.94% in that time.
Investors will be hoping for strength from Texas Instruments as it approaches its next earnings release. In that report, analysts expect Texas Instruments to post earnings of $1.76 per share. This would mark a year-over-year decline of 25.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.36 billion, down 11.07% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.53 per share and revenue of $18.11 billion, which would represent changes of -19.81% and -9.6%, respectively, from the prior year.
It is also important to note the recent changes to 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Texas Instruments is holding a Forward P/E ratio of 23.16. For comparison, its industry has an average Forward P/E of 23.16, which means Texas Instruments is trading at a no noticeable deviation to the group.
Investors should also note that TXN has a PEG ratio of 2.48 right now. 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. The Semiconductor - General was holding an average PEG ratio of 2.79 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.
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