Yahoo Finance Texas Instruments (TXN) Outperforms Broader Market: What You Need to Know
Texas Instruments (TXN) closed at $201.39 in the latest trading session, marking a +1.47% move from the prior day. This change outpaced the S&P 500's 0.03% gain on the day. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.2%.
Heading into today, shares of the chipmaker had lost 1.09% over the past month, outpacing the Computer and Technology sector's loss of 1.2% and lagging the S&P 500's gain of 1.54% in that time.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. On that day, Texas Instruments is projected to report earnings of $1.36 per share, which would represent a year-over-year decline of 24.44%. Meanwhile, our latest consensus estimate is calling for revenue of $4.11 billion, down 9.29% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.11 per share and a revenue of $15.72 billion, demonstrating changes of -27.72% and -10.28%, respectively, from the preceding year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. As of now, Texas Instruments holds a Zacks Rank of #3 (Hold).
Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 38.83. Its industry sports an average Forward P/E of 20.34, so one might conclude that Texas Instruments is trading at a premium comparatively.
One should further note that TXN currently holds a PEG ratio of 4.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Semiconductor - General industry stood at 3.83 at the close of the market yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 210, this industry ranks in the bottom 17% of all industries, numbering over 250.
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
