Yahoo Finance Texas Instruments (TXN) Beats Stock Market Upswing: What Investors Need to Know
The most recent trading session ended with Texas Instruments (TXN) standing at $194.47, reflecting a +0.29% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.09%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.16%.
Shares of the chipmaker have depreciated by 2.65% over the course of the past month, underperforming the Computer and Technology sector's gain of 4.06% and the S&P 500's gain of 2.83%.
The upcoming earnings release of Texas Instruments will be of great interest to investors. In that report, analysts expect Texas Instruments to post earnings of $1.16 per share. This would mark a year-over-year decline of 37.97%. In the meantime, our current consensus estimate forecasts the revenue to be $3.8 billion, indicating a 16.15% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.13 per share and revenue of $15.74 billion. These totals would mark changes of -27.44% and -10.18%, respectively, from last 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.73% lower. At present, Texas Instruments boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 37.8. This denotes a premium relative to the industry's average Forward P/E of 27.75.
We can also see that TXN currently has a PEG ratio of 4.2. 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. The Semiconductor - General industry had an average PEG ratio of 2.5 as trading concluded yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
