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Texas Instruments (TXN) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, Texas Instruments (TXN - Free Report) closed at $178.20, marking a -2.41% move from the previous day. This change lagged the S&P 500's 0.47% gain on the day. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.94%.

Shares of the chipmaker have depreciated by 6.15% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.88%, and the S&P 500's gain of 2.32%.

Analysts and investors alike will be keeping a close eye on the performance of Texas Instruments in its upcoming earnings disclosure. On that day, Texas Instruments is projected to report earnings of $1.48 per share, which would represent year-over-year growth of 0.68%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.64 billion, indicating a 11.83% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $5.6 per share and a revenue of $17.67 billion, demonstrating changes of +7.69% and +12.94%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Texas Instruments currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Texas Instruments is holding a Forward P/E ratio of 32.61. This valuation marks a discount compared to its industry average Forward P/E of 38.67.

Investors should also note that TXN has a PEG ratio of 2.98 right now. 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 was holding an average PEG ratio of 3.62 at yesterday's closing price.

The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 27, positioning it in the top 11% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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