Yahoo Finance Texas Instruments (TXN) Gains But Lags Market: What You Should Know
The latest trading session saw Texas Instruments (TXN) ending at $203.85, denoting a +0.27% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.15%.
Prior to today's trading, shares of the chipmaker had lost 3.14% over the past month. This has lagged the Computer and Technology sector's loss of 0.02% and the S&P 500's gain of 2% in that time.
Market participants will be closely following the financial results of Texas Instruments in its upcoming release. The company is forecasted to report an EPS of $1.36, showcasing a 24.44% downward movement from the corresponding quarter of the prior year. 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 are projecting earnings of $5.11 per share and revenue of $15.72 billion, which would represent changes of -27.72% and -10.28%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. 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 39.78 right now. This indicates a premium in contrast to its industry's Forward P/E of 22.47.
It's also important to note that TXN currently trades at a PEG ratio of 4.42. 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. The Semiconductor - General industry had an average PEG ratio of 3.89 as trading concluded yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 180, placing it within the bottom 29% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
