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Texas Instruments (TXN) Advances While Market Declines: Some Information for Investors

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Texas Instruments (TXN - Free Report) closed the most recent trading day at $153.20, moving +0.2% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.1% for the day. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.16%.

The chipmaker's shares have seen an increase of 7.67% over the last month, not keeping up with the Computer and Technology sector's gain of 14.19% and the S&P 500's gain of 10.77%.

Analysts and investors alike will be keeping a close eye on the performance of Texas Instruments in its upcoming earnings disclosure. In that report, analysts expect Texas Instruments to post earnings of $1.46 per share. This would mark a year-over-year decline of 31.46%. At the same time, our most recent consensus estimate is projecting a revenue of $4.11 billion, reflecting a 11.92% fall from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.04 per share and a revenue of $17.56 billion, representing changes of -25.03% and -12.35%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Texas Instruments. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.44% decrease. At present, Texas Instruments boasts a Zacks Rank of #4 (Sell).

In the context of valuation, Texas Instruments is at present trading with a Forward P/E ratio of 21.72. This denotes a premium relative to the industry's average Forward P/E of 19.48.

It's also important to note that TXN currently trades at a PEG ratio of 2.41. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TXN's industry had an average PEG ratio of 2.8 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 23, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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