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Texas Instruments (TXN) Stock Slides as Market Rises: Facts to Know Before You Trade
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Texas Instruments (TXN - Free Report) ended the recent trading session at $185.84, demonstrating a -1.11% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.21%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.45%.
Coming into today, shares of the chipmaker had gained 0.38% in the past month. In that same time, the Computer and Technology sector gained 4.48%, while the S&P 500 gained 3.07%.
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 $1.48, marking a 0.68% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $4.64 billion, up 11.83% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.6 per share and revenue of $17.67 billion, which would represent changes of +7.69% and +12.94%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Texas Instruments is currently being traded at a Forward P/E ratio of 33.56. This expresses a discount compared to the average Forward P/E of 37.65 of its industry.
Meanwhile, TXN's PEG ratio is currently 3.07. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - General was holding an average PEG ratio of 3.74 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Texas Instruments (TXN) Stock Slides as Market Rises: Facts to Know Before You Trade
Texas Instruments (TXN - Free Report) ended the recent trading session at $185.84, demonstrating a -1.11% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.21%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.45%.
Coming into today, shares of the chipmaker had gained 0.38% in the past month. In that same time, the Computer and Technology sector gained 4.48%, while the S&P 500 gained 3.07%.
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 $1.48, marking a 0.68% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $4.64 billion, up 11.83% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.6 per share and revenue of $17.67 billion, which would represent changes of +7.69% and +12.94%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Texas Instruments is currently being traded at a Forward P/E ratio of 33.56. This expresses a discount compared to the average Forward P/E of 37.65 of its industry.
Meanwhile, TXN's PEG ratio is currently 3.07. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - General was holding an average PEG ratio of 3.74 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.