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Texas Instruments (TXN) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest close session, Texas Instruments (TXN - Free Report) was up +2.93% at $215.03. The stock's change was more than the S&P 500's daily gain of 0.62%. Meanwhile, the Dow experienced a rise of 0.58%, and the technology-dominated Nasdaq saw an increase of 0.83%.

Heading into today, shares of the chipmaker had gained 5.15% over the past month, outpacing the Computer and Technology sector's gain of 2.41% and the S&P 500's gain of 0.8%.

Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 22, 2026. The company's upcoming EPS is projected at $1.37, signifying a 7.03% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.52 billion, up 11.01% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.35 per share and a revenue of $19.37 billion, indicating changes of +16.51% and +9.57%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Texas Instruments is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, Texas Instruments is holding a Forward P/E ratio of 32.9. This indicates a discount in contrast to its industry's Forward P/E of 34.14.

Meanwhile, TXN's PEG ratio is currently 1.9. 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 average PEG ratio for the Semiconductor - General industry stood at 1.9 at the close of the market yesterday.

The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 18, positioning it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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