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Texas Instruments (TXN) Exceeds Market Returns: Some Facts to Consider

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Texas Instruments (TXN - Free Report) ended the recent trading session at $201.40, demonstrating a +1.61% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.96%. Meanwhile, the Dow gained 0.89%, and the Nasdaq, a tech-heavy index, added 0.94%.

Heading into today, shares of the chipmaker had gained 12.42% over the past month, outpacing the Computer and Technology sector's gain of 2.53% and the S&P 500's gain of 0.5%.

The upcoming earnings release of Texas Instruments will be of great interest to investors. It is anticipated that the company will report an EPS of $1.32, marking a 8.2% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $4.31 billion, showing a 12.75% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.55 per share and a revenue of $17.29 billion, signifying shifts of +6.73% and +10.57%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Texas Instruments is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Texas Instruments has a Forward P/E ratio of 35.72 right now. This represents no noticeable deviation compared to its industry average Forward P/E of 35.72.

Meanwhile, TXN's PEG ratio is currently 3.23. 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 Semiconductor - General industry had an average PEG ratio of 2.51 as trading concluded yesterday.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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