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Texas Instruments (TXN) Gains But Lags Market: What You Should Know

Texas Instruments (TXN) closed the most recent trading day at $170.36, moving +0.06% from the previous trading session. This change lagged the S&P 500's 0.24% gain on the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.73%.

Heading into today, shares of the chipmaker had gained 3.68% over the past month, lagging the Computer and Technology sector's gain of 10.73% and outpacing the S&P 500's gain of 3.56% in that time.

Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. On that day, Texas Instruments is projected to report earnings of $1.76 per share, which would represent a year-over-year decline of 28.16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.36 billion, down 16.43% from the year-ago period.

TXN's full-year Zacks Consensus Estimates are calling for earnings of $7.48 per share and revenue of $17.93 billion. These results would represent year-over-year changes of -20.34% and -10.49%, respectively.

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Investors might also notice recent changes to analyst estimates for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. 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 currently trading at a Forward P/E ratio of 22.76. This valuation marks a premium compared to its industry's average Forward P/E of 19.34.

It is also worth noting that TXN currently has a PEG ratio of 2.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TXN's industry had an average PEG ratio of 2.36 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report

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