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Texas Instruments (TXN) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Texas Instruments (TXN - Free Report) closed at $164.66, marking a -0.03% move from the previous day. This change lagged the S&P 500's 0.14% gain on the day. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, added 0.09%.
Heading into today, shares of the chipmaker had lost 1.7% over the past month, lagging the Computer and Technology sector's gain of 0.07% and the S&P 500's loss of 1.27% 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 $1.82 per share. This would mark a year-over-year decline of 25.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.57 billion, down 12.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.34 per share and revenue of $18.03 billion, which would represent changes of -21.83% and -9.96%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Texas Instruments. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. 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 22.43. Its industry sports an average Forward P/E of 18.39, so we one might conclude that Texas Instruments is trading at a premium comparatively.
Also, we should mention that TXN has a PEG ratio of 2.4. 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 2.84 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 81, which puts it in the top 33% 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.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.
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Texas Instruments (TXN) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Texas Instruments (TXN - Free Report) closed at $164.66, marking a -0.03% move from the previous day. This change lagged the S&P 500's 0.14% gain on the day. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, added 0.09%.
Heading into today, shares of the chipmaker had lost 1.7% over the past month, lagging the Computer and Technology sector's gain of 0.07% and the S&P 500's loss of 1.27% 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 $1.82 per share. This would mark a year-over-year decline of 25.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.57 billion, down 12.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.34 per share and revenue of $18.03 billion, which would represent changes of -21.83% and -9.96%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Texas Instruments. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. 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 22.43. Its industry sports an average Forward P/E of 18.39, so we one might conclude that Texas Instruments is trading at a premium comparatively.
Also, we should mention that TXN has a PEG ratio of 2.4. 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 2.84 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 81, which puts it in the top 33% 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.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.