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Why Texas Instruments (TXN) Dipped More Than Broader Market Today
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In the latest close session, Texas Instruments (TXN - Free Report) was down 8.39% at $304.41. The stock's change was less than the S&P 500's daily loss of 1.44%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 2.22%.
Prior to today's trading, shares of the chipmaker had gained 7.46% outpaced the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 0.08%.
The upcoming earnings release of Texas Instruments will be of great interest to investors. The company's upcoming EPS is projected at $1.9, signifying a 34.75% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.22 billion, indicating a 17.39% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.66 per share and a revenue of $20.76 billion, representing changes of +40.55% and +17.38%, respectively, from the prior year.
Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Texas Instruments currently has a Zacks Rank of #2 (Buy).
From a valuation perspective, Texas Instruments is currently exchanging hands at a Forward P/E ratio of 43.35. Its industry sports an average Forward P/E of 68.59, so one might conclude that Texas Instruments is trading at a discount comparatively.
It's also important to note that TXN currently trades at a PEG ratio of 1.67. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TXN's industry had an average PEG ratio of 1.06 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 46, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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.
View the Zacks #1 Rank List
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Why Texas Instruments (TXN) Dipped More Than Broader Market Today
In the latest close session, Texas Instruments (TXN - Free Report) was down 8.39% at $304.41. The stock's change was less than the S&P 500's daily loss of 1.44%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 2.22%.
Prior to today's trading, shares of the chipmaker had gained 7.46% outpaced the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 0.08%.
The upcoming earnings release of Texas Instruments will be of great interest to investors. The company's upcoming EPS is projected at $1.9, signifying a 34.75% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.22 billion, indicating a 17.39% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.66 per share and a revenue of $20.76 billion, representing changes of +40.55% and +17.38%, respectively, from the prior year.
Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Texas Instruments currently has a Zacks Rank of #2 (Buy).
From a valuation perspective, Texas Instruments is currently exchanging hands at a Forward P/E ratio of 43.35. Its industry sports an average Forward P/E of 68.59, so one might conclude that Texas Instruments is trading at a discount comparatively.
It's also important to note that TXN currently trades at a PEG ratio of 1.67. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TXN's industry had an average PEG ratio of 1.06 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 46, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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.