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Texas Instruments (TXN) Stock Falls Amid Market Uptick: What Investors Need to Know

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Texas Instruments (TXN - Free Report) closed at $167.42 in the latest trading session, marking a -0.72% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.45%.

The upcoming earnings release of Texas Instruments will be of great interest to investors. The company's upcoming EPS is projected at $1.46, signifying a 31.46% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.11 billion, indicating a 11.92% decrease compared to the same quarter of the previous year.

TXN's full-year Zacks Consensus Estimates are calling for earnings of $7.04 per share and revenue of $17.56 billion. These results would represent year-over-year changes of -25.03% and -12.35%, respectively.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. At present, Texas Instruments boasts a Zacks Rank of #4 (Sell).

Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 23.96. This signifies a premium in comparison to the average Forward P/E of 19.88 for its industry.

Meanwhile, TXN's PEG ratio is currently 2.66. 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 average PEG ratio for the Semiconductor - General industry stood at 2.79 at the close of the market yesterday.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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