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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 $163.21, moving -1.22% from the previous trading session. This change lagged the S&P 500's daily loss of 0.4%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 4.72%.
Prior to today's trading, shares of the chipmaker had lost 6.86% over the past month. This has was narrower than the Computer and Technology sector's loss of 8.46% and lagged the S&P 500's loss of 5.57% in that time.
Investors will be hoping for strength from Texas Instruments as it approaches its next earnings release. In that report, analysts expect Texas Instruments to post earnings of $1.97 per share. This would mark a year-over-year decline of 13.22%. Meanwhile, our latest consensus estimate is calling for revenue of $4.6 billion, down 4.78% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 17.86. This represents a premium compared to its industry's average Forward P/E of 13.52.
Investors should also note that TXN has a PEG ratio of 1.91 right now. 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. The Semiconductor - General industry currently had an average PEG ratio of 1.86 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 99, putting it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Texas Instruments (TXN) Dips More Than Broader Markets: What You Should Know
Texas Instruments (TXN - Free Report) closed the most recent trading day at $163.21, moving -1.22% from the previous trading session. This change lagged the S&P 500's daily loss of 0.4%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 4.72%.
Prior to today's trading, shares of the chipmaker had lost 6.86% over the past month. This has was narrower than the Computer and Technology sector's loss of 8.46% and lagged the S&P 500's loss of 5.57% in that time.
Investors will be hoping for strength from Texas Instruments as it approaches its next earnings release. In that report, analysts expect Texas Instruments to post earnings of $1.97 per share. This would mark a year-over-year decline of 13.22%. Meanwhile, our latest consensus estimate is calling for revenue of $4.6 billion, down 4.78% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 17.86. This represents a premium compared to its industry's average Forward P/E of 13.52.
Investors should also note that TXN has a PEG ratio of 1.91 right now. 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. The Semiconductor - General industry currently had an average PEG ratio of 1.86 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 99, putting it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.