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

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In the latest trading session, Texas Instruments (TXN - Free Report) closed at $179.03, marking a +0.13% move from the previous day. This move outpaced the S&P 500's daily loss of 0.67%.

The company is expected to report EPS of $1.80, up 21.62% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.32 billion, up 33.32% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.36 per share and revenue of $17.4 billion, which would represent changes of +23.28% and +20.3%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TXN. These recent revisions tend to reflect the evolving nature of short-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. 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 8.65% higher within the past month. TXN is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that TXN has a Forward P/E ratio of 24.3 right now. For comparison, its industry has an average Forward P/E of 23.55, which means TXN is trading at a premium to the group.

It is also worth noting that TXN currently has a PEG ratio of 2.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TXN's industry had an average PEG ratio of 2.6 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 125, which puts it in the top 50% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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