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Texas Instruments (TXN) Outperforms Broader Market: What You Need to Know
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Texas Instruments (TXN - Free Report) ended the recent trading session at $196.30, demonstrating a +1.11% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, added 1.16%.
The chipmaker's stock has dropped by 4.21% in the past month, exceeding the Computer and Technology sector's loss of 5.35% and the S&P 500's loss of 4.99%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company is expected to report EPS of $1.37, up 7.03% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $4.52 billion, showing a 11.01% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.35 per share and a revenue of $19.37 billion, representing changes of +16.51% and +9.57%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Texas Instruments boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 30.57. This indicates a discount in contrast to its industry's Forward P/E of 31.66.
It's also important to note that TXN currently trades at a PEG ratio of 1.76. 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. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 1.76.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 30% 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.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.
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Texas Instruments (TXN) Outperforms Broader Market: What You Need to Know
Texas Instruments (TXN - Free Report) ended the recent trading session at $196.30, demonstrating a +1.11% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, added 1.16%.
The chipmaker's stock has dropped by 4.21% in the past month, exceeding the Computer and Technology sector's loss of 5.35% and the S&P 500's loss of 4.99%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company is expected to report EPS of $1.37, up 7.03% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $4.52 billion, showing a 11.01% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.35 per share and a revenue of $19.37 billion, representing changes of +16.51% and +9.57%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Texas Instruments boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 30.57. This indicates a discount in contrast to its industry's Forward P/E of 31.66.
It's also important to note that TXN currently trades at a PEG ratio of 1.76. 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. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 1.76.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 30% 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.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.