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

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In the latest trading session, Texas Instruments (TXN - Free Report) closed at $186.03, marking a +0.75% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.14%.

Heading into today, shares of the chipmaker had lost 2.96% over the past month, outpacing the Computer and Technology sector's loss of 4.59% and lagging the S&P 500's gain of 0.12% in that time.

Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. This is expected to be January 25, 2022. On that day, Texas Instruments is projected to report earnings of $1.95 per share, which would represent year-over-year growth of 8.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.44 billion, up 8.87% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Texas Instruments. These revisions help to show the ever-changing nature of 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 22.47. This valuation marks a premium compared to its industry's average Forward P/E of 16.98.

Also, we should mention that TXN has a PEG ratio of 2.41. 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. The Semiconductor - General was holding an average PEG ratio of 2.88 at yesterday's closing price.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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