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Texas Instruments (TXN) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest close session, Texas Instruments (TXN - Free Report) was down 2.78% at $288.98. This change lagged the S&P 500's daily loss of 0.22%. On the other hand, the Dow registered a loss of 0.66%, and the technology-centric Nasdaq decreased by 0.22%.

The stock of chipmaker has risen by 14.8% in the past month, leading the Computer and Technology sector's gain of 6.54% and the S&P 500's gain of 1.4%.

Analysts and investors alike will be keeping a close eye on the performance of Texas Instruments in its upcoming earnings disclosure. The company's earnings report is set to go public on October 21, 2026. The company is predicted to post an EPS of $2.39, indicating a 61.49% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $5.91 billion, reflecting a 24.66% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $8.45 per share and a revenue of $21.72 billion, demonstrating changes of +55.05% and +22.81%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Texas Instruments. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 past month, the Zacks Consensus EPS estimate remained stagnant. Texas Instruments presently features a Zacks Rank of #3 (Hold).

Looking at valuation, Texas Instruments is presently trading at a Forward P/E ratio of 35.16. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 35.16.

Investors should also note that TXN has a PEG ratio of 1.66 right now. 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. The Semiconductor - General was holding an average PEG ratio of 1.85 at yesterday's closing price.

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 strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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