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Texas Instruments (TXN) Stock Slides as Market Rises: Facts to Know Before You Trade

The most recent trading session ended with Texas Instruments (TXN) standing at $170.34, reflecting a -0.01% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.11%, while the tech-heavy Nasdaq appreciated by 0.23%.

The chipmaker's shares have seen a decrease of 0.16% over the last month, not keeping up with the Computer and Technology sector's gain of 1.54% and the S&P 500's gain of 1.5%.

The investment community will be closely monitoring the performance of Texas Instruments in its forthcoming earnings report. The company is scheduled to release its earnings on April 23, 2024. The company's earnings per share (EPS) are projected to be $1.06, reflecting a 42.7% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.61 billion, down 17.65% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.17 per share and a revenue of $15.91 billion, indicating changes of -26.87% and -9.19%, respectively, from the former year.

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It is also important to note the recent changes to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.18% decrease. Texas Instruments presently features a Zacks Rank of #4 (Sell).

Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 32.98. Its industry sports an average Forward P/E of 27.08, so one might conclude that Texas Instruments is trading at a premium comparatively.

It is also worth noting that TXN currently has a PEG ratio of 3.66. 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 2.49 based on yesterday's closing prices.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 66, finds itself in the top 27% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report

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