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Texas Instruments (TXN) Dips More Than Broader Markets: What You Should Know

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Texas Instruments (TXN - Free Report) closed at $186.10 in the latest trading session, marking a -0.5% move from the prior day. This move lagged the S&P 500's daily loss of 0.11%.

Prior to today's trading, shares of the chipmaker had lost 0.88% over the past month. This has lagged the Computer and Technology sector's gain of 7.15% and the S&P 500's gain of 2.23% in that time.

Wall Street will be looking for positivity from TXN as it approaches its next earnings report date. On that day, TXN is projected to report earnings of $1.81 per share, which would represent year-over-year growth of 22.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.32 billion, up 33.32% from the year-ago period.

TXN's full-year Zacks Consensus Estimates are calling for earnings of $7.39 per share and revenue of $17.4 billion. These results would represent year-over-year changes of +23.79% and +20.3%, respectively.

It is also important to note the 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.44% higher. TXN is currently a Zacks Rank #2 (Buy).

Looking at its valuation, TXN is holding a Forward P/E ratio of 25.31. This valuation marks a premium compared to its industry's average Forward P/E of 21.76.

Also, we should mention that TXN has a PEG ratio of 2.71. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TXN's industry had an average PEG ratio of 2.71 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 71, putting it in the top 28% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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