Texas Instruments (TXN) Gains As Market Dips: What You Should Know
Texas Instruments (TXN) closed the most recent trading day at $177.49, moving +0.25% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 3.64%.
Coming into today, shares of the chipmaker had gained 3.7% in the past month. In that same time, the Computer and Technology sector gained 6.7%, while the S&P 500 gained 0.07%.
Investors will be hoping for strength from Texas Instruments as it approaches its next earnings release. On that day, Texas Instruments is projected to report earnings of $1.76 per share, which would represent 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.
Investors should also note any 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Texas Instruments has a Forward P/E ratio of 23.51 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 23.51.
Also, we should mention that TXN has a PEG ratio of 2.52. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.95 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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