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Strength Seen in Texas Instruments (TXN): Can Its 7.0% Jump Turn into More Strength?
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Texas Instruments (TXN - Free Report) shares soared 6.9% in the last trading session to close at $322.86. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1% loss over the past four weeks.
The optimism surrounding the stock can be attributed to solid data center demand, which is boosting its prospects in the enterprise systems market. A sustained focus on expanding its product portfolio across the Analog and Embedded Processing segments helps capture market share. Its deepening focus on internal manufacturing and advanced technology infusion is another positive.
This chipmaker is expected to post quarterly earnings of $1.90 per share in its upcoming report, which represents a year-over-year change of +34.8%. Revenues are expected to be $5.22 billion, up 17.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Texas Instruments, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TXN going forward to see if this recent jump can turn into more strength down the road.
Texas Instruments is a member of the Zacks Semiconductor - General industry. One other stock in the same industry, STMicroelectronics (STM - Free Report) , finished the last trading session 6.9% higher at $78.39. STM has returned 13% over the past month.
STMicroelectronics' consensus EPS estimate for the upcoming report has changed +1.4% over the past month to $0.24. Compared to the company's year-ago EPS, this represents a change of +300%. STMicroelectronics currently boasts a Zacks Rank of #3 (Hold).
View the Zacks #1 Rank List
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Strength Seen in Texas Instruments (TXN): Can Its 7.0% Jump Turn into More Strength?
Texas Instruments (TXN - Free Report) shares soared 6.9% in the last trading session to close at $322.86. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1% loss over the past four weeks.
The optimism surrounding the stock can be attributed to solid data center demand, which is boosting its prospects in the enterprise systems market. A sustained focus on expanding its product portfolio across the Analog and Embedded Processing segments helps capture market share. Its deepening focus on internal manufacturing and advanced technology infusion is another positive.
This chipmaker is expected to post quarterly earnings of $1.90 per share in its upcoming report, which represents a year-over-year change of +34.8%. Revenues are expected to be $5.22 billion, up 17.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Texas Instruments, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TXN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Texas Instruments is a member of the Zacks Semiconductor - General industry. One other stock in the same industry, STMicroelectronics (STM - Free Report) , finished the last trading session 6.9% higher at $78.39. STM has returned 13% over the past month.
STMicroelectronics' consensus EPS estimate for the upcoming report has changed +1.4% over the past month to $0.24. Compared to the company's year-ago EPS, this represents a change of +300%. STMicroelectronics currently boasts a Zacks Rank of #3 (Hold).