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Texas Instruments (TXN) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Texas Instruments (TXN - Free Report) closed at $191.24, marking a -0.62% move from the previous day. This change lagged the S&P 500's 0.33% gain on the day.
Heading into today, shares of the chipmaker had gained 12.59% over the past month, outpacing the Computer and Technology sector's gain of 5.19% and the S&P 500's gain of 4.77% in that time.
TXN will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2021. The company is expected to report EPS of $1.56, up 25.81% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.97 billion, up 19.3% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.77 per share and revenue of $16.71 billion, which would represent changes of +13.4% and +15.58%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for TXN. These revisions help to show the ever-changing nature of near-term business trends. 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% higher. TXN is currently a Zacks Rank #2 (Buy).
Looking at its valuation, TXN is holding a Forward P/E ratio of 28.86. Its industry sports an average Forward P/E of 25.66, 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 3.09. 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 3.26 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 45, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Texas Instruments (TXN) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Texas Instruments (TXN - Free Report) closed at $191.24, marking a -0.62% move from the previous day. This change lagged the S&P 500's 0.33% gain on the day.
Heading into today, shares of the chipmaker had gained 12.59% over the past month, outpacing the Computer and Technology sector's gain of 5.19% and the S&P 500's gain of 4.77% in that time.
TXN will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2021. The company is expected to report EPS of $1.56, up 25.81% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.97 billion, up 19.3% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.77 per share and revenue of $16.71 billion, which would represent changes of +13.4% and +15.58%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for TXN. These revisions help to show the ever-changing nature of near-term business trends. 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% higher. TXN is currently a Zacks Rank #2 (Buy).
Looking at its valuation, TXN is holding a Forward P/E ratio of 28.86. Its industry sports an average Forward P/E of 25.66, 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 3.09. 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 3.26 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 45, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.