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Texas Instruments (TXN) Gains As Market Dips: What You Should Know

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Texas Instruments (TXN - Free Report) closed at $162.52 in the latest trading session, marking a +0.06% move from the prior day. This change outpaced the S&P 500's 0.21% loss on the day. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq gained 0.51%.

Heading into today, shares of the chipmaker had gained 3.18% over the past month, lagging the Computer and Technology sector's gain of 6.68% and the S&P 500's gain of 4% in that time.

Wall Street will be looking for positivity from TXN as it approaches its next earnings report date. The company is expected to report EPS of $1.32, up 17.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.58 billion, up 6.88% from the prior-year quarter.

TXN's full-year Zacks Consensus Estimates are calling for earnings of $5.47 per share and revenue of $13.97 billion. These results would represent year-over-year changes of +4.39% and -2.89%, respectively.

Investors might also notice recent changes to analyst estimates for TXN. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. TXN is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note TXN's current valuation metrics, including its Forward P/E ratio of 29.69. Its industry sports an average Forward P/E of 27.59, so we one might conclude that TXN is trading at a premium comparatively.

It is also worth noting that TXN currently has a PEG ratio of 3.18. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 3.1 based on yesterday's closing prices.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 18% 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.


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