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Texas Instruments (TXN) Dips More Than Broader Markets: What You Should Know
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Texas Instruments (TXN - Free Report) closed the most recent trading day at $173.75, moving -0.34% from the previous trading session. This move lagged the S&P 500's daily loss of 0.19%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the chipmaker had gained 3.71% in the past month. In that same time, the Computer and Technology sector gained 8.91%, while the S&P 500 gained 4.7%.
Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. The company is expected to report EPS of $1.97, down 13.22% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.61 billion, down 4.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.27 per share and revenue of $19.97 billion, which would represent changes of +12.23% and +8.84%, respectively, from the prior year.
Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Texas Instruments has a Forward P/E ratio of 18.8 right now. For comparison, its industry has an average Forward P/E of 14.58, which means Texas Instruments is trading at a premium to the group.
Investors should also note that TXN has a PEG ratio of 2.01 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - General industry currently had an average PEG ratio of 1.98 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 (TXN) Dips More Than Broader Markets: What You Should Know
Texas Instruments (TXN - Free Report) closed the most recent trading day at $173.75, moving -0.34% from the previous trading session. This move lagged the S&P 500's daily loss of 0.19%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the chipmaker had gained 3.71% in the past month. In that same time, the Computer and Technology sector gained 8.91%, while the S&P 500 gained 4.7%.
Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. The company is expected to report EPS of $1.97, down 13.22% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.61 billion, down 4.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.27 per share and revenue of $19.97 billion, which would represent changes of +12.23% and +8.84%, respectively, from the prior year.
Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Texas Instruments has a Forward P/E ratio of 18.8 right now. For comparison, its industry has an average Forward P/E of 14.58, which means Texas Instruments is trading at a premium to the group.
Investors should also note that TXN has a PEG ratio of 2.01 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - General industry currently had an average PEG ratio of 1.98 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.