Back to top

Image: Bigstock

Texas Instruments (TXN) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, Texas Instruments (TXN - Free Report) closed at $184.55, marking a +1.38% move from the previous day. This move outpaced the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq added 0.44%.

Prior to today's trading, shares of the chipmaker had lost 10.8% lagged the Computer and Technology sector's gain of 7.68% and the S&P 500's gain of 2.72%.

Analysts and investors alike will be keeping a close eye on 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. In the meantime, our current consensus estimate forecasts the revenue to be $4.64 billion, indicating a 11.88% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.6 per share and a revenue of $17.67 billion, indicating changes of +7.69% and +12.96%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Texas Instruments. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Texas Instruments is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Texas Instruments's current valuation metrics, including its Forward P/E ratio of 32.53. For comparison, its industry has an average Forward P/E of 39.94, which means Texas Instruments is trading at a discount to the group.

Investors should also note that TXN has a PEG ratio of 2.97 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - General industry currently had an average PEG ratio of 4.66 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 65, positioning it in the top 27% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Texas Instruments Incorporated (TXN) - free report >>

Published in