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Texas Instruments (TXN) Declines More Than Market: Some Information for Investors
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Texas Instruments (TXN - Free Report) closed at $285.43 in the latest trading session, marking a -8.46% move from the prior day. This change lagged the S&P 500's daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 0.24%.
Coming into today, shares of the chipmaker had lost 1.31% in the past month. In that same time, the Computer and Technology sector lost 2.81%, while the S&P 500 lost 1.42%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.9, showcasing a 34.75% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $5.22 billion, reflecting a 17.39% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $7.66 per share and a revenue of $20.76 billion, demonstrating changes of +40.55% and +17.38%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Texas Instruments presently features a Zacks Rank of #2 (Buy).
With respect to valuation, Texas Instruments is currently being traded at a Forward P/E ratio of 40.68. For comparison, its industry has an average Forward P/E of 63.86, which means Texas Instruments is trading at a discount to the group.
Also, we should mention that TXN has a PEG ratio of 1.56. 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. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 0.99.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 24, positioning it in the top 10% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Texas Instruments (TXN) Declines More Than Market: Some Information for Investors
Texas Instruments (TXN - Free Report) closed at $285.43 in the latest trading session, marking a -8.46% move from the prior day. This change lagged the S&P 500's daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 0.24%.
Coming into today, shares of the chipmaker had lost 1.31% in the past month. In that same time, the Computer and Technology sector lost 2.81%, while the S&P 500 lost 1.42%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.9, showcasing a 34.75% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $5.22 billion, reflecting a 17.39% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $7.66 per share and a revenue of $20.76 billion, demonstrating changes of +40.55% and +17.38%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Texas Instruments presently features a Zacks Rank of #2 (Buy).
With respect to valuation, Texas Instruments is currently being traded at a Forward P/E ratio of 40.68. For comparison, its industry has an average Forward P/E of 63.86, which means Texas Instruments is trading at a discount to the group.
Also, we should mention that TXN has a PEG ratio of 1.56. 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. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 0.99.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 24, positioning it in the top 10% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.