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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 1.07% at $260.62. This change lagged the S&P 500's 0.45% loss on the day. On the other hand, the Dow registered a loss of 1.21%, and the technology-centric Nasdaq decreased by 0.01%.
The chipmaker's stock has dropped by 3.24% in the past month, falling short of the Computer and Technology sector's loss of 1.9% and the S&P 500's loss of 2.43%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.39, reflecting a 61.49% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $5.91 billion, up 24.69% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.45 per share and revenue of $21.7 billion, which would represent changes of +55.05% and +22.73%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Texas Instruments is currently sporting a Zacks Rank of #2 (Buy).
From a valuation perspective, Texas Instruments is currently exchanging hands at a Forward P/E ratio of 31.17. This represents a discount compared to its industry average Forward P/E of 33.73.
It is also worth noting that TXN currently has a PEG ratio of 1.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 1.64.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 23, this industry ranks in the top 10% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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 1.07% at $260.62. This change lagged the S&P 500's 0.45% loss on the day. On the other hand, the Dow registered a loss of 1.21%, and the technology-centric Nasdaq decreased by 0.01%.
The chipmaker's stock has dropped by 3.24% in the past month, falling short of the Computer and Technology sector's loss of 1.9% and the S&P 500's loss of 2.43%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.39, reflecting a 61.49% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $5.91 billion, up 24.69% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.45 per share and revenue of $21.7 billion, which would represent changes of +55.05% and +22.73%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Texas Instruments is currently sporting a Zacks Rank of #2 (Buy).
From a valuation perspective, Texas Instruments is currently exchanging hands at a Forward P/E ratio of 31.17. This represents a discount compared to its industry average Forward P/E of 33.73.
It is also worth noting that TXN currently has a PEG ratio of 1.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 1.64.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 23, this industry ranks in the top 10% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.