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Texas Instruments (TXN) Declines More Than Market: Some Information for Investors
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Texas Instruments (TXN - Free Report) closed the latest trading day at $157.25, indicating a -0.11% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.06%. Meanwhile, the Dow experienced a drop of 0.22%, and the technology-dominated Nasdaq saw an increase of 0.31%.
The chipmaker's stock has climbed by 6.73% in the past month, exceeding the Computer and Technology sector's gain of 5.53% and the S&P 500's gain of 5.1%.
The investment community will be paying close attention to the earnings performance of Texas Instruments in its upcoming release. The company is expected to report EPS of $1.46, down 31.46% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.11 billion, down 11.92% from the year-ago period.
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.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.44% lower. Currently, Texas Instruments is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Texas Instruments is presently being traded at a Forward P/E ratio of 22.36. This signifies a premium in comparison to the average Forward P/E of 19.99 for its industry.
We can also see that TXN currently has a PEG ratio of 2.48. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Semiconductor - General industry stood at 2.63 at the close of the market yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 37, which puts it in the top 15% 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.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.
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Texas Instruments (TXN) Declines More Than Market: Some Information for Investors
Texas Instruments (TXN - Free Report) closed the latest trading day at $157.25, indicating a -0.11% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.06%. Meanwhile, the Dow experienced a drop of 0.22%, and the technology-dominated Nasdaq saw an increase of 0.31%.
The chipmaker's stock has climbed by 6.73% in the past month, exceeding the Computer and Technology sector's gain of 5.53% and the S&P 500's gain of 5.1%.
The investment community will be paying close attention to the earnings performance of Texas Instruments in its upcoming release. The company is expected to report EPS of $1.46, down 31.46% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.11 billion, down 11.92% from the year-ago period.
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.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.44% lower. Currently, Texas Instruments is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Texas Instruments is presently being traded at a Forward P/E ratio of 22.36. This signifies a premium in comparison to the average Forward P/E of 19.99 for its industry.
We can also see that TXN currently has a PEG ratio of 2.48. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Semiconductor - General industry stood at 2.63 at the close of the market yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 37, which puts it in the top 15% 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.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.