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Texas Instruments (TXN) Stock Sinks As Market Gains: Here's Why
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Texas Instruments (TXN - Free Report) closed at $196.65 in the latest trading session, marking a -0.29% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.61% for the day. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 1.31%.
Coming into today, shares of the chipmaker had lost 2.58% in the past month. In that same time, the Computer and Technology sector gained 5.27%, while the S&P 500 gained 5.79%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.19, indicating a 20.13% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.86 billion, indicating a 5.38% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.08 per share and revenue of $15.5 billion. These totals would mark changes of -28.15% and -11.52%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Texas Instruments. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 shifted 0.02% downward. Texas Instruments presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 38.82. This expresses a premium compared to the average Forward P/E of 28.28 of its industry.
We can additionally observe that TXN currently boasts a PEG ratio of 4.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Semiconductor - General industry had an average PEG ratio of 3.13 as trading concluded yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Texas Instruments (TXN) Stock Sinks As Market Gains: Here's Why
Texas Instruments (TXN - Free Report) closed at $196.65 in the latest trading session, marking a -0.29% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.61% for the day. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 1.31%.
Coming into today, shares of the chipmaker had lost 2.58% in the past month. In that same time, the Computer and Technology sector gained 5.27%, while the S&P 500 gained 5.79%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.19, indicating a 20.13% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.86 billion, indicating a 5.38% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.08 per share and revenue of $15.5 billion. These totals would mark changes of -28.15% and -11.52%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Texas Instruments. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 shifted 0.02% downward. Texas Instruments presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 38.82. This expresses a premium compared to the average Forward P/E of 28.28 of its industry.
We can additionally observe that TXN currently boasts a PEG ratio of 4.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Semiconductor - General industry had an average PEG ratio of 3.13 as trading concluded yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.