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

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Texas Instruments (TXN - Free Report) closed at $192.96 in the latest trading session, marking a +0.19% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.08%.

Prior to today's trading, shares of the chipmaker had gained 2.52% over the past month. This has outpaced the Computer and Technology sector's loss of 0.11% and the S&P 500's loss of 1.81% in that time.

Wall Street will be looking for positivity from TXN as it approaches its next earnings report date. In that report, analysts expect TXN to post earnings of $2.04 per share. This would mark year-over-year growth of 40.69%. Our most recent consensus estimate is calling for quarterly revenue of $4.65 billion, up 21.73% from the year-ago period.

TXN's full-year Zacks Consensus Estimates are calling for earnings of $7.86 per share and revenue of $17.94 billion. These results would represent year-over-year changes of +31.66% and +24.05%, respectively.

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. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TXN is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, TXN is holding a Forward P/E ratio of 24.51. For comparison, its industry has an average Forward P/E of 23.95, which means TXN is trading at a premium to the group.

Also, we should mention that TXN has a PEG ratio of 2.63. 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. The Semiconductor - General industry currently had an average PEG ratio of 2.74 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 58, which puts it in the top 23% 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.

To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.


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