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Why Texas Instruments (TXN) Outpaced the Stock Market Today
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Texas Instruments (TXN - Free Report) closed at $266.54 in the latest trading session, marking a +1.82% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.72%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 1.57%.
Coming into today, shares of the chipmaker had lost 3.51% in the past month. In that same time, the Computer and Technology sector gained 5.02%, while the S&P 500 gained 3.68%.
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 $2.37, showcasing a 60.14% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.91 billion, indicating a 24.69% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.42 per share and revenue of $21.7 billion. These totals would mark changes of +54.5% and +22.73%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.82% rise in the Zacks Consensus EPS estimate. Texas Instruments is holding a Zacks Rank of #2 (Buy) right now.
Looking at valuation, Texas Instruments is presently trading at a Forward P/E ratio of 31.1. This represents a discount compared to its industry average Forward P/E of 37.
We can also see that TXN currently has a PEG ratio of 1.03. 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 0.72.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
View the Zacks #1 Rank List
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Why Texas Instruments (TXN) Outpaced the Stock Market Today
Texas Instruments (TXN - Free Report) closed at $266.54 in the latest trading session, marking a +1.82% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.72%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 1.57%.
Coming into today, shares of the chipmaker had lost 3.51% in the past month. In that same time, the Computer and Technology sector gained 5.02%, while the S&P 500 gained 3.68%.
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 $2.37, showcasing a 60.14% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.91 billion, indicating a 24.69% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.42 per share and revenue of $21.7 billion. These totals would mark changes of +54.5% and +22.73%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.82% rise in the Zacks Consensus EPS estimate. Texas Instruments is holding a Zacks Rank of #2 (Buy) right now.
Looking at valuation, Texas Instruments is presently trading at a Forward P/E ratio of 31.1. This represents a discount compared to its industry average Forward P/E of 37.
We can also see that TXN currently has a PEG ratio of 1.03. 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 0.72.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.