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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 the most recent trading day at $191.20, moving -0.38% from the previous trading session. This move lagged the S&P 500's daily loss of 0.35%.

Coming into today, shares of the chipmaker had gained 0.87% in the past month. In that same time, the Computer and Technology sector gained 4.23%, while the S&P 500 gained 3.36%.

Wall Street will be looking for positivity from TXN as it approaches its next earnings report date. This is expected to be July 21, 2021. In that report, analysts expect TXN to post earnings of $1.82 per share. This would mark year-over-year growth of 22.97%. Our most recent consensus estimate is calling for quarterly revenue of $4.34 billion, up 33.97% from the year-ago period.

TXN's full-year Zacks Consensus Estimates are calling for earnings of $7.42 per share and revenue of $17.54 billion. These results would represent year-over-year changes of +24.29% and +21.28%, respectively.

Any recent changes to analyst estimates for TXN should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.42% higher. TXN currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that TXN has a Forward P/E ratio of 25.86 right now. Its industry sports an average Forward P/E of 23.94, so we one might conclude that TXN is trading at a premium comparatively.

Also, we should mention that TXN has a PEG ratio of 2.77. 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 2.77 based on yesterday's closing prices.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% 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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