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Texas Instruments (TXN) Gains But Lags Market: What You Should Know
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Texas Instruments (TXN - Free Report) closed the most recent trading day at $177.50, moving +0.01% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.16%.
Heading into today, shares of the chipmaker had gained 0.02% over the past month, outpacing the Computer and Technology sector's loss of 0.58% and lagging the S&P 500's gain of 0.09% in that time.
Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. On that day, Texas Instruments is projected to report earnings of $1.97 per share, which would represent a year-over-year decline of 13.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.61 billion, down 4.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.25 per share and revenue of $19.97 billion. These totals would mark changes of +11.99% and +8.84%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has moved 0.27% lower. Texas Instruments is currently a Zacks Rank #3 (Hold).
Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 19.19. This represents a premium compared to its industry's average Forward P/E of 14.6.
We can also see that TXN currently has a PEG ratio of 2.06. 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 was holding an average PEG ratio of 2.01 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.
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Texas Instruments (TXN) Gains But Lags Market: What You Should Know
Texas Instruments (TXN - Free Report) closed the most recent trading day at $177.50, moving +0.01% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.16%.
Heading into today, shares of the chipmaker had gained 0.02% over the past month, outpacing the Computer and Technology sector's loss of 0.58% and lagging the S&P 500's gain of 0.09% in that time.
Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. On that day, Texas Instruments is projected to report earnings of $1.97 per share, which would represent a year-over-year decline of 13.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.61 billion, down 4.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.25 per share and revenue of $19.97 billion. These totals would mark changes of +11.99% and +8.84%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has moved 0.27% lower. Texas Instruments is currently a Zacks Rank #3 (Hold).
Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 19.19. This represents a premium compared to its industry's average Forward P/E of 14.6.
We can also see that TXN currently has a PEG ratio of 2.06. 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 was holding an average PEG ratio of 2.01 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.