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

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Texas Instruments (TXN - Free Report) closed the most recent trading day at $188.17, moving -0.23% from the previous trading session. This change lagged the S&P 500's daily gain of 0.33%.

Prior to today's trading, shares of the chipmaker had lost 0.27% over the past month. This has lagged the Computer and Technology sector's gain of 6.03% and the S&P 500's gain of 1.74% 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 $1.81, up 22.3% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.32 billion, up 33.32% from the prior-year quarter.

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.

Any recent changes to analyst estimates for TXN should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.44% higher within the past month. TXN currently has a Zacks Rank of #2 (Buy).

Digging into valuation, TXN currently has a Forward P/E ratio of 25.52. For comparison, its industry has an average Forward P/E of 21.85, which means TXN is trading at a premium to the group.

Also, we should mention that TXN has a PEG ratio of 2.73. 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 2.73 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 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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