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Texas Instruments (TXN) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Texas Instruments (TXN - Free Report) closed at $162.70, marking a +0.94% move from the previous day. This move outpaced the S&P 500's daily gain of 0.13%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.15%.

Prior to today's trading, shares of the chipmaker had lost 1.41% over the past month. This has lagged the Computer and Technology sector's gain of 4.54% and the S&P 500's gain of 2.59% in that time.

TXN will be looking to display strength as it nears its next earnings release. In that report, analysts expect TXN to post earnings of $1.32 per share. This would mark year-over-year growth of 17.86%. Our most recent consensus estimate is calling for quarterly revenue of $3.58 billion, up 6.88% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.47 per share and revenue of $13.97 billion. These totals would mark changes of +4.39% and -2.89%, respectively, from last year.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. TXN is currently a Zacks Rank #3 (Hold).

Looking at its valuation, TXN is holding a Forward P/E ratio of 29.47. For comparison, its industry has an average Forward P/E of 29.47, which means TXN is trading at a no noticeable deviation to the group.

It is also worth noting that TXN currently has a PEG ratio of 3.16. 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 3.04 based on yesterday's closing prices.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 232, which puts it in the bottom 10% 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.

To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.


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