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Texas Instruments (TXN) Outperforms Broader Market: What You Need to Know
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Texas Instruments (TXN - Free Report) closed the most recent trading day at $196.20, moving +1.54% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.83% for the day. On the other hand, the Dow registered a gain of 0.5%, and the technology-centric Nasdaq increased by 1.38%.
Coming into today, shares of the chipmaker had lost 12.74% in the past month. In that same time, the Computer and Technology sector lost 3.51%, while the S&P 500 lost 2.65%.
Analysts and investors alike will be keeping a close eye on the performance of Texas Instruments in its upcoming earnings disclosure. In that report, analysts expect Texas Instruments to post earnings of $1.37 per share. This would mark year-over-year growth of 7.03%. In the meantime, our current consensus estimate forecasts the revenue to be $4.52 billion, indicating a 11.01% growth compared to the corresponding quarter of the prior year.
TXN's full-year Zacks Consensus Estimates are calling for earnings of $6.38 per share and revenue of $19.37 billion. These results would represent year-over-year changes of +17.06% and +9.57%, respectively.
Investors should also take note of any recent adjustments to analyst estimates 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% upward. Texas Instruments currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Texas Instruments is holding a Forward P/E ratio of 30.27. This indicates a premium in contrast to its industry's Forward P/E of 30.
Meanwhile, TXN's PEG ratio is currently 1.75. 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. TXN's industry had an average PEG ratio of 1.75 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 36% 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.
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) Outperforms Broader Market: What You Need to Know
Texas Instruments (TXN - Free Report) closed the most recent trading day at $196.20, moving +1.54% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.83% for the day. On the other hand, the Dow registered a gain of 0.5%, and the technology-centric Nasdaq increased by 1.38%.
Coming into today, shares of the chipmaker had lost 12.74% in the past month. In that same time, the Computer and Technology sector lost 3.51%, while the S&P 500 lost 2.65%.
Analysts and investors alike will be keeping a close eye on the performance of Texas Instruments in its upcoming earnings disclosure. In that report, analysts expect Texas Instruments to post earnings of $1.37 per share. This would mark year-over-year growth of 7.03%. In the meantime, our current consensus estimate forecasts the revenue to be $4.52 billion, indicating a 11.01% growth compared to the corresponding quarter of the prior year.
TXN's full-year Zacks Consensus Estimates are calling for earnings of $6.38 per share and revenue of $19.37 billion. These results would represent year-over-year changes of +17.06% and +9.57%, respectively.
Investors should also take note of any recent adjustments to analyst estimates 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% upward. Texas Instruments currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Texas Instruments is holding a Forward P/E ratio of 30.27. This indicates a premium in contrast to its industry's Forward P/E of 30.
Meanwhile, TXN's PEG ratio is currently 1.75. 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. TXN's industry had an average PEG ratio of 1.75 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 36% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.