We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Texas Instruments (TXN) Laps the Stock Market: Here's Why
Read MoreHide Full Article
Texas Instruments (TXN - Free Report) closed the most recent trading day at $278.07, moving +2.74% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.51%. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 0.48%.
Heading into today, shares of the chipmaker had gained 1.54% over the past month, lagging the Computer and Technology sector's gain of 6.54% and outpacing the S&P 500's gain of 0.74%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company is expected to report EPS of $2.39, up 61.49% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.91 billion, up 24.69% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.45 per share and revenue of $21.7 billion, indicating changes of +55.05% and +22.73%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Texas Instruments is currently being traded at a Forward P/E ratio of 32.03. Its industry sports an average Forward P/E of 37.56, so one might conclude that Texas Instruments is trading at a discount comparatively.
We can also see that TXN currently has a PEG ratio of 1.51. 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. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 1.73.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 32, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
Image: Bigstock
Texas Instruments (TXN) Laps the Stock Market: Here's Why
Texas Instruments (TXN - Free Report) closed the most recent trading day at $278.07, moving +2.74% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.51%. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 0.48%.
Heading into today, shares of the chipmaker had gained 1.54% over the past month, lagging the Computer and Technology sector's gain of 6.54% and outpacing the S&P 500's gain of 0.74%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company is expected to report EPS of $2.39, up 61.49% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.91 billion, up 24.69% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.45 per share and revenue of $21.7 billion, indicating changes of +55.05% and +22.73%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Texas Instruments is currently being traded at a Forward P/E ratio of 32.03. Its industry sports an average Forward P/E of 37.56, so one might conclude that Texas Instruments is trading at a discount comparatively.
We can also see that TXN currently has a PEG ratio of 1.51. 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. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 1.73.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 32, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.