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Why Texas Instruments (TXN) Outpaced the Stock Market Today
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Texas Instruments (TXN - Free Report) closed the latest trading day at $202.29, indicating a +1.55% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.55%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.63%.
Shares of the chipmaker have appreciated by 6.37% over the course of the past month, underperforming the Computer and Technology sector's gain of 11.3% and outperforming the S&P 500's gain of 6.29%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. In that report, analysts expect Texas Instruments to post earnings of $1.32 per share. This would mark year-over-year growth of 8.2%. Meanwhile, our latest consensus estimate is calling for revenue of $4.31 billion, up 12.75% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.55 per share and a revenue of $17.29 billion, indicating changes of +6.73% and +10.57%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. Currently, Texas Instruments is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Texas Instruments is currently being traded at a Forward P/E ratio of 35.9. This expresses no noticeable deviation compared to the average Forward P/E of 35.9 of its industry.
Meanwhile, TXN's PEG ratio is currently 3.24. 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 currently had an average PEG ratio of 2.4 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 153, positioning it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Why Texas Instruments (TXN) Outpaced the Stock Market Today
Texas Instruments (TXN - Free Report) closed the latest trading day at $202.29, indicating a +1.55% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.55%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.63%.
Shares of the chipmaker have appreciated by 6.37% over the course of the past month, underperforming the Computer and Technology sector's gain of 11.3% and outperforming the S&P 500's gain of 6.29%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. In that report, analysts expect Texas Instruments to post earnings of $1.32 per share. This would mark year-over-year growth of 8.2%. Meanwhile, our latest consensus estimate is calling for revenue of $4.31 billion, up 12.75% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.55 per share and a revenue of $17.29 billion, indicating changes of +6.73% and +10.57%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. Currently, Texas Instruments is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Texas Instruments is currently being traded at a Forward P/E ratio of 35.9. This expresses no noticeable deviation compared to the average Forward P/E of 35.9 of its industry.
Meanwhile, TXN's PEG ratio is currently 3.24. 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 currently had an average PEG ratio of 2.4 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 153, positioning it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.