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Texas Instruments (TXN) Gains But Lags Market: What You Should Know

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In the latest trading session, Texas Instruments (TXN - Free Report) closed at $183.68, marking a +0.15% move from the previous day. The stock lagged the S&P 500's daily gain of 0.71%. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, added 4.62%.

Heading into today, shares of the chipmaker had gained 3.76% over the past month, outpacing the Computer and Technology sector's gain of 2.78% and the S&P 500's gain of 2.65% 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 July 25, 2023. In that report, analysts expect Texas Instruments to post earnings of $1.76 per share. This would mark a year-over-year decline of 28.16%. Our most recent consensus estimate is calling for quarterly revenue of $4.36 billion, down 16.43% from the year-ago period.

TXN's full-year Zacks Consensus Estimates are calling for earnings of $7.46 per share and revenue of $17.93 billion. These results would represent year-over-year changes of -20.55% and -10.49%, respectively.

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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% lower. Texas Instruments is currently a Zacks Rank #4 (Sell).

Looking at its valuation, Texas Instruments is holding a Forward P/E ratio of 24.58. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 24.58.

Investors should also note that TXN has a PEG ratio of 2.63 right now. 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 2.62 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 121, putting it in the top 49% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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