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Here's Why Texas Instruments (TXN) Fell More Than Broader Market
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Texas Instruments (TXN - Free Report) ended the recent trading session at $173.49, demonstrating a -1.1% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.74%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.76%.
Shares of the chipmaker witnessed a gain of 0.09% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.14%, and the S&P 500's gain of 0.79%.
The investment community will be paying close attention to the earnings performance of Texas Instruments in its upcoming release. It is anticipated that the company will report an EPS of $1.28, marking a 1.54% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.42 billion, up 10.38% from the prior-year quarter.
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.
Investors should also take note of any recent adjustments to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
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 witnessed an unchanged state. Currently, Texas Instruments is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Texas Instruments is currently being traded at a Forward P/E ratio of 32.12. This indicates a discount in contrast to its industry's Forward P/E of 34.68.
Investors should also note that TXN has a PEG ratio of 3.11 right now. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 3.99 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 37, positioning it in the top 15% 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.
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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Here's Why Texas Instruments (TXN) Fell More Than Broader Market
Texas Instruments (TXN - Free Report) ended the recent trading session at $173.49, demonstrating a -1.1% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.74%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.76%.
Shares of the chipmaker witnessed a gain of 0.09% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.14%, and the S&P 500's gain of 0.79%.
The investment community will be paying close attention to the earnings performance of Texas Instruments in its upcoming release. It is anticipated that the company will report an EPS of $1.28, marking a 1.54% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.42 billion, up 10.38% from the prior-year quarter.
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.
Investors should also take note of any recent adjustments to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
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 witnessed an unchanged state. Currently, Texas Instruments is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Texas Instruments is currently being traded at a Forward P/E ratio of 32.12. This indicates a discount in contrast to its industry's Forward P/E of 34.68.
Investors should also note that TXN has a PEG ratio of 3.11 right now. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 3.99 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 37, positioning it in the top 15% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.