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Texas Instruments (TXN) Rises As Market Takes a Dip: Key Facts

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In the latest close session, Texas Instruments (TXN - Free Report) was up +1.36% at $210.45. The stock exceeded the S&P 500, which registered a loss of 0.11% for the day. Elsewhere, the Dow gained 0.91%, while the tech-heavy Nasdaq lost 0.82%.

The chipmaker's shares have seen an increase of 12.71% over the last month, surpassing the Computer and Technology sector's gain of 8.76% and the S&P 500's gain of 5.17%.

Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. 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. Alongside, our most recent consensus estimate is anticipating revenue of $4.31 billion, indicating a 12.75% upward movement from the same quarter last year.

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.

Investors might also notice recent changes to analyst estimates for Texas Instruments. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Texas Instruments holds a Zacks Rank of #4 (Sell).

Looking at valuation, Texas Instruments is presently trading at a Forward P/E ratio of 37.42. This signifies no noticeable deviation in comparison to the average Forward P/E of 37.42 for its industry.

It is also worth noting that TXN currently has a PEG ratio of 3.38. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.64 based on yesterday's closing prices.

The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 187, placing it within the bottom 25% of over 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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