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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 $181.67, demonstrating a +1.2% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.68% for the day. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 0.33%.
The chipmaker's stock has climbed by 12.39% in the past month, exceeding the Computer and Technology sector's gain of 4.45% and the S&P 500's gain of 1.8%.
The upcoming earnings release of Texas Instruments will be of great interest to investors. The company is forecasted to report an EPS of $1.28, showcasing a 1.54% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $4.42 billion, up 10.38% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.46 per share and revenue of $17.69 billion, indicating changes of +5% and +13.07%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.66% lower within the past month. Texas Instruments is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 32.87. Its industry sports an average Forward P/E of 42.36, so one might conclude that Texas Instruments is trading at a discount comparatively.
It is also worth noting that TXN currently has a PEG ratio of 3.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 4.52.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 62, this industry ranks in the top 26% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Texas Instruments (TXN) Exceeds Market Returns: Some Facts to Consider
Texas Instruments (TXN - Free Report) ended the recent trading session at $181.67, demonstrating a +1.2% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.68% for the day. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 0.33%.
The chipmaker's stock has climbed by 12.39% in the past month, exceeding the Computer and Technology sector's gain of 4.45% and the S&P 500's gain of 1.8%.
The upcoming earnings release of Texas Instruments will be of great interest to investors. The company is forecasted to report an EPS of $1.28, showcasing a 1.54% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $4.42 billion, up 10.38% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.46 per share and revenue of $17.69 billion, indicating changes of +5% and +13.07%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.66% lower within the past month. Texas Instruments is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 32.87. Its industry sports an average Forward P/E of 42.36, so one might conclude that Texas Instruments is trading at a discount comparatively.
It is also worth noting that TXN currently has a PEG ratio of 3.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 4.52.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 62, this industry ranks in the top 26% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.