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Texas Instruments and KimberlyClark have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – November 4, 2026 – Zacks Equity Research shares Texas Instruments (TXN - Free Report) as the Bull of the Day and KimberlyClark (KMB - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Palantir Technologies Inc. (PLTR - Free Report) .
While the leading-edge, high-performance semiconductors powering the AI boom have garnered most of the attention in recent years, some of the less flashy analog and embedded chips are also playing a critical role in the expansion of advanced technologies and infrastructure.
Texas Instruments, the world's largest analog semiconductor manufacturer, has been enjoying accelerating fundamental growth, significant earnings upgrades and increasingly bullish stock price momentum.
After sitting out much of the AI boom, TXN had been weighed down by cyclical headwinds as its automotive and industrial customers worked through large inventories accumulated following the pandemic. However, the stock emerged from that slump earlier this year, and the bullish catalysts continue to mount.
Furthermore, amid a particularly volatile stretch for large segments of the semiconductor industry, Texas Instruments and several other major analog chipmakers have demonstrated notable relative strength. Although there have certainly been bumps along the way, these stocks have generally held up well during recent bouts of selling in former market leaders.
Below, we'll review the emerging opportunities for Texas Instruments, its improving earnings outlook and the valuation picture.
Emerging Opportunities for Texas Instrument
Texas Instruments is positioned to benefit from several powerful trends, including industrial automation, automotive electrification, expanding data center infrastructure and the broader recovery in semiconductor demand.
Unlike the advanced processors developed by Nvidia and other AI leaders, analog semiconductors perform essential functions such as managing power, converting signals and interfacing with real-world systems.
These chips are required across virtually every modern electronic system, and their importance only increases as devices and infrastructure become more sophisticated.
The automotive industry offers a clear example as the average number of semiconductors per vehicle doubled between 2017 and 2021, reaching roughly 1,700, with demand continuing to rise as electrification, advanced safety systems and autonomous driving features become more widespread
The expansion of AI data centers of course is interesting as well. While GPUs capture the headlines, these facilities also require enormous amounts of power management, monitoring and supporting electronics, creating additional demand for analog components.
Meanwhile, the company's industrial and automotive markets are recovering from a prolonged inventory correction, providing a more cyclical source of growth.
Texas Instruments also enjoys a structural manufacturing advantage through its investments in 300mm wafer fabrication, which can reduce production costs substantially compared with traditional 200mm manufacturing.
The company recently began production at its newest fab in Sherman, Texas, part of a broader $60 billion US manufacturing expansion spanning seven facilities in Texas and Utah. With additional capacity coming online, TXN is positioning itself to capture rising demand while benefiting from greater economies of scale and tighter control over its supply chain.
TXN Stock Jumps on Earnings Beat and Upgrades
Texas Instruments' latest quarterly results offered compelling evidence that the recovery continues to gain momentum.
Third quarter revenue increased 28% year over year to $6.06 billion, while earnings per share surged 77% to $2.62. Operating profit climbed an impressive 73%, highlighting the substantial operating leverage in the business.
Importantly, the strength was broad-based, with management reporting continued growth across industrial, automotive and data center markets. The company's analog segment was particularly strong, generating 32% revenue growth, while embedded processing revenue increased 21%.
Over the last 60 days, the Zacks Consensus Estimate for current year earnings has increased 5.6% to $8.89 per share, while next year estimates have jumped 13% to $11.12. These developments have contributed to a powerful trend in analyst earnings upgrades, earning TXN a Zacks Rank #1 (Strong Buy).
Even more encouraging, revisions have been overwhelmingly positive, with no downward adjustments among the revisions recorded across the current and next fiscal years.
That combination of accelerating earnings growth and consistently rising estimates is precisely what we look for when identifying stocks with the potential to outperform.
Shares of TXN Trade Near Historical Average
Despite its impressive rally this year, Texas Instruments' valuation is becoming more reasonable as earnings expectations catch up with the stock price.
TXN currently trades around 34x forward earnings, a premium to the broader market and respective industry, though one that should be considered in the context of its accelerating profit growth, strong market position and cash generating capabilities.
The company generated $7.4 billion in free cash flow over the trailing 12 months.
Although the stock is hardly a bargain on conventional valuation measures, the sharp increase in forward earnings estimates has helped moderate its valuation even as shares have advanced.
Should Investors Buy Shares of TXN?
Texas Instruments offers investors exposure to several important secular growth themes without relying exclusively on the more speculative corners of the AI trade.
The combination of recovering industrial demand, expanding data center opportunities, improving margins and powerful earnings revisions makes for an increasingly compelling fundamental picture.
Of course, the cyclical nature of the semiconductor industry and the stock's premium valuation remain important risks. That said, most evidence points to an early stage of cyclical recovery.
Nevertheless, with earnings momentum accelerating and shares demonstrating impressive relative strength, TXN looks well positioned to continue outperforming in the months ahead.
KimberlyClark, the consumer staples giant behind household brands like Huggies, Kleenex and Cottonelle, has faced considerable selling pressure as its underlying growth continues to disappoint, while its massive acquisition of Kenvue introduces a new set of financial challenges.
The company has struggled to generate meaningful organic growth for years, with annual sales largely stagnant over the last decade. That lackluster performance has been reflected in the stock price, with KMB shares declining approximately 19% over the last five years, compared with a 66% gain for the S&P 500.
And while management is pursuing a significant transformation of the business, the near-term outlook remains challenging. Weak sales trends, downward earnings revisions and the additional financial burden of its Kenvue acquisition have created an increasingly uncertain fundamental picture.
KimberlyClark Shares Fall Alongside Earnings Estimates
Even before accounting for the Kenvue transaction, KimberlyClark's underlying business has been showing signs of weakness.
In the second quarter, revenue from continuing operations increased just 0.6% year over year to $4.2 billion, while organic sales were essentially flat.
The company also faced considerable pressure in China, its core growth segment, where social media allegations surrounding its diaper products disrupted sales and contributed to management lowering its full year outlook.
KimberlyClark now expects 2026 organic sales growth to trail its underlying categories by approximately one percentage point, while adjusted earnings per share attributable to the company are expected to decline slightly on a constant-currency basis.
Its October preliminary update reaffirmed that outlook, offering little indication of an imminent acceleration.
Not surprisingly, analysts have been cutting their earnings forecasts, pushing KimberlyClark to a Zacks Rank #5 (Strong Sell).
Over the last 60 days, the Zacks Consensus Estimate for current year earnings has declined 8.1% to $6.83 per share, while next year estimates have fallen 8.2% to $7.03. Earnings estimates have been in steep decline since the start of 2025.
With earnings expectations deteriorating across multiple periods, there is little evidence that the fundamental outlook has reached an inflection point.
Should Investors Avoid KMB Stock?
KimberlyClark has long been regarded as a defensive consumer staples investment, supported by its recognizable brands, recurring demand and consistent dividend payments.
However, defensive businesses are not necessarily defensive investments, particularly when growth stalls and earnings expectations continue to decline.
The Kenvue acquisition certainly introduces opportunities for improving profitability and expanding the company's market presence. But it also raises the stakes considerably, with a larger debt burden and meaningful execution risks.
Until management demonstrates improving organic growth, successful integration and a stabilization in earnings estimates, KMB appears likely to remain under pressure.
For now, investors may be better served looking elsewhere in the consumer staples sector.
Additional content:
Palantir Stock: Buy, Hold or Sell After 96% Revenue Growth?
Surging artificial intelligence (AI) demand and strong revenue growth have helped Palantir Technologies Inc. deliver blowout third-quarter results. However, its shares are falling after earnings, and valuation apprehensions are rising. In this scenario, is Palantir stock a buy, hold, or sell now? Let's have a closer look –
Palantir's AI Growth Fuels Record Revenues and Profits
Palantir's revenues nearly doubled in the third quarter compared with the same period a year earlier. In the third quarter, Palantir's revenues were $2.313 billion, up 96% year over year, according to the company's Nov. 2 press release. For the first time, Palantir's revenues exceeded $2 billion, signaling that demand for the company's AI and software platform is accelerating.
In particular, the U.S. commercial business surged, and revenues from this segment surpassed the U.S. government segment for the first time. U.S. commercial revenues were $984 million, up 148% year over year, while U.S. government revenues were $953 million, up 96% year over year. This shows that Palantir has been able to expand its AI technology among its private customers and has reduced its dependence on government contracts, which could be a major long-term growth driver.
There is already strong demand for its AI products, as Palantir closed 212 deals worth at least $1 million, 107 deals worth at least $5 million, and 64 deals worth at least $10 million during the third quarter. Moreover, the company's remaining deal value reached $6.517 billion, up 79% year over year, indicating the possibility of continued revenue growth.
Palantir isn't just growing revenues; it is converting a portion of that revenue into profits. The company reported a GAAP net income margin of 49%, suggesting strong operational efficiency and potential to scale. The company also has substantial financial resources to expand its business and drive growth. It generated a massive free cash flow of $1.216 billion in the third quarter.
Palantir Stock After Earnings: Buy, Hold or Sell Now?
Palantir's robust revenues and earnings highlight accelerating demand for its AI products, positioning the company for strong growth in the years ahead. Management raised its full-year 2026 revenue guidance to around $8.53 billion, well above Wall Street expectations, and expects $2.65 billion in fourth-quarter revenues. This should encourage stakeholders to stay invested.
However, new investors should exercise caution before investing in Palantir stock at its current lofty valuation. This is because elevated market expectations mean that any disappointment in performance could pull the shares down. This was evident as shares fell 3.1% in after-hours trading following the earnings announcement. The decline was partly because of slower year-over-year growth in U.S. commercial contract value compared with the previous quarter.
Nonetheless, Palantir remains significantly overvalued compared to the Internet - Software industry, with a forward price-to-earnings (P/E) ratio of 110.26 compared to the industry's 31.98.???
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
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Texas Instruments and KimberlyClark have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – November 4, 2026 – Zacks Equity Research shares Texas Instruments (TXN - Free Report) as the Bull of the Day and KimberlyClark (KMB - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Palantir Technologies Inc. (PLTR - Free Report) .
Here is a synopsis of all three stocks:
Bull of the Day:
While the leading-edge, high-performance semiconductors powering the AI boom have garnered most of the attention in recent years, some of the less flashy analog and embedded chips are also playing a critical role in the expansion of advanced technologies and infrastructure.
Texas Instruments, the world's largest analog semiconductor manufacturer, has been enjoying accelerating fundamental growth, significant earnings upgrades and increasingly bullish stock price momentum.
After sitting out much of the AI boom, TXN had been weighed down by cyclical headwinds as its automotive and industrial customers worked through large inventories accumulated following the pandemic. However, the stock emerged from that slump earlier this year, and the bullish catalysts continue to mount.
Furthermore, amid a particularly volatile stretch for large segments of the semiconductor industry, Texas Instruments and several other major analog chipmakers have demonstrated notable relative strength. Although there have certainly been bumps along the way, these stocks have generally held up well during recent bouts of selling in former market leaders.
Below, we'll review the emerging opportunities for Texas Instruments, its improving earnings outlook and the valuation picture.
Emerging Opportunities for Texas Instrument
Texas Instruments is positioned to benefit from several powerful trends, including industrial automation, automotive electrification, expanding data center infrastructure and the broader recovery in semiconductor demand.
Unlike the advanced processors developed by Nvidia and other AI leaders, analog semiconductors perform essential functions such as managing power, converting signals and interfacing with real-world systems.
These chips are required across virtually every modern electronic system, and their importance only increases as devices and infrastructure become more sophisticated.
The automotive industry offers a clear example as the average number of semiconductors per vehicle doubled between 2017 and 2021, reaching roughly 1,700, with demand continuing to rise as electrification, advanced safety systems and autonomous driving features become more widespread
The expansion of AI data centers of course is interesting as well. While GPUs capture the headlines, these facilities also require enormous amounts of power management, monitoring and supporting electronics, creating additional demand for analog components.
Meanwhile, the company's industrial and automotive markets are recovering from a prolonged inventory correction, providing a more cyclical source of growth.
Texas Instruments also enjoys a structural manufacturing advantage through its investments in 300mm wafer fabrication, which can reduce production costs substantially compared with traditional 200mm manufacturing.
The company recently began production at its newest fab in Sherman, Texas, part of a broader $60 billion US manufacturing expansion spanning seven facilities in Texas and Utah. With additional capacity coming online, TXN is positioning itself to capture rising demand while benefiting from greater economies of scale and tighter control over its supply chain.
TXN Stock Jumps on Earnings Beat and Upgrades
Texas Instruments' latest quarterly results offered compelling evidence that the recovery continues to gain momentum.
Third quarter revenue increased 28% year over year to $6.06 billion, while earnings per share surged 77% to $2.62. Operating profit climbed an impressive 73%, highlighting the substantial operating leverage in the business.
Importantly, the strength was broad-based, with management reporting continued growth across industrial, automotive and data center markets. The company's analog segment was particularly strong, generating 32% revenue growth, while embedded processing revenue increased 21%.
Over the last 60 days, the Zacks Consensus Estimate for current year earnings has increased 5.6% to $8.89 per share, while next year estimates have jumped 13% to $11.12. These developments have contributed to a powerful trend in analyst earnings upgrades, earning TXN a Zacks Rank #1 (Strong Buy).
Even more encouraging, revisions have been overwhelmingly positive, with no downward adjustments among the revisions recorded across the current and next fiscal years.
That combination of accelerating earnings growth and consistently rising estimates is precisely what we look for when identifying stocks with the potential to outperform.
Shares of TXN Trade Near Historical Average
Despite its impressive rally this year, Texas Instruments' valuation is becoming more reasonable as earnings expectations catch up with the stock price.
TXN currently trades around 34x forward earnings, a premium to the broader market and respective industry, though one that should be considered in the context of its accelerating profit growth, strong market position and cash generating capabilities.
The company generated $7.4 billion in free cash flow over the trailing 12 months.
Although the stock is hardly a bargain on conventional valuation measures, the sharp increase in forward earnings estimates has helped moderate its valuation even as shares have advanced.
Should Investors Buy Shares of TXN?
Texas Instruments offers investors exposure to several important secular growth themes without relying exclusively on the more speculative corners of the AI trade.
The combination of recovering industrial demand, expanding data center opportunities, improving margins and powerful earnings revisions makes for an increasingly compelling fundamental picture.
Of course, the cyclical nature of the semiconductor industry and the stock's premium valuation remain important risks. That said, most evidence points to an early stage of cyclical recovery.
Nevertheless, with earnings momentum accelerating and shares demonstrating impressive relative strength, TXN looks well positioned to continue outperforming in the months ahead.
Bear of the Day:
KimberlyClark, the consumer staples giant behind household brands like Huggies, Kleenex and Cottonelle, has faced considerable selling pressure as its underlying growth continues to disappoint, while its massive acquisition of Kenvue introduces a new set of financial challenges.
The company has struggled to generate meaningful organic growth for years, with annual sales largely stagnant over the last decade. That lackluster performance has been reflected in the stock price, with KMB shares declining approximately 19% over the last five years, compared with a 66% gain for the S&P 500.
And while management is pursuing a significant transformation of the business, the near-term outlook remains challenging. Weak sales trends, downward earnings revisions and the additional financial burden of its Kenvue acquisition have created an increasingly uncertain fundamental picture.
KimberlyClark Shares Fall Alongside Earnings Estimates
Even before accounting for the Kenvue transaction, KimberlyClark's underlying business has been showing signs of weakness.
In the second quarter, revenue from continuing operations increased just 0.6% year over year to $4.2 billion, while organic sales were essentially flat.
The company also faced considerable pressure in China, its core growth segment, where social media allegations surrounding its diaper products disrupted sales and contributed to management lowering its full year outlook.
KimberlyClark now expects 2026 organic sales growth to trail its underlying categories by approximately one percentage point, while adjusted earnings per share attributable to the company are expected to decline slightly on a constant-currency basis.
Its October preliminary update reaffirmed that outlook, offering little indication of an imminent acceleration.
Not surprisingly, analysts have been cutting their earnings forecasts, pushing KimberlyClark to a Zacks Rank #5 (Strong Sell).
Over the last 60 days, the Zacks Consensus Estimate for current year earnings has declined 8.1% to $6.83 per share, while next year estimates have fallen 8.2% to $7.03. Earnings estimates have been in steep decline since the start of 2025.
With earnings expectations deteriorating across multiple periods, there is little evidence that the fundamental outlook has reached an inflection point.
Should Investors Avoid KMB Stock?
KimberlyClark has long been regarded as a defensive consumer staples investment, supported by its recognizable brands, recurring demand and consistent dividend payments.
However, defensive businesses are not necessarily defensive investments, particularly when growth stalls and earnings expectations continue to decline.
The Kenvue acquisition certainly introduces opportunities for improving profitability and expanding the company's market presence. But it also raises the stakes considerably, with a larger debt burden and meaningful execution risks.
Until management demonstrates improving organic growth, successful integration and a stabilization in earnings estimates, KMB appears likely to remain under pressure.
For now, investors may be better served looking elsewhere in the consumer staples sector.
Additional content:
Palantir Stock: Buy, Hold or Sell After 96% Revenue Growth?
Surging artificial intelligence (AI) demand and strong revenue growth have helped Palantir Technologies Inc. deliver blowout third-quarter results. However, its shares are falling after earnings, and valuation apprehensions are rising. In this scenario, is Palantir stock a buy, hold, or sell now? Let's have a closer look –
Palantir's AI Growth Fuels Record Revenues and Profits
Palantir's revenues nearly doubled in the third quarter compared with the same period a year earlier. In the third quarter, Palantir's revenues were $2.313 billion, up 96% year over year, according to the company's Nov. 2 press release. For the first time, Palantir's revenues exceeded $2 billion, signaling that demand for the company's AI and software platform is accelerating.
In particular, the U.S. commercial business surged, and revenues from this segment surpassed the U.S. government segment for the first time. U.S. commercial revenues were $984 million, up 148% year over year, while U.S. government revenues were $953 million, up 96% year over year. This shows that Palantir has been able to expand its AI technology among its private customers and has reduced its dependence on government contracts, which could be a major long-term growth driver.
There is already strong demand for its AI products, as Palantir closed 212 deals worth at least $1 million, 107 deals worth at least $5 million, and 64 deals worth at least $10 million during the third quarter. Moreover, the company's remaining deal value reached $6.517 billion, up 79% year over year, indicating the possibility of continued revenue growth.
Palantir isn't just growing revenues; it is converting a portion of that revenue into profits. The company reported a GAAP net income margin of 49%, suggesting strong operational efficiency and potential to scale. The company also has substantial financial resources to expand its business and drive growth. It generated a massive free cash flow of $1.216 billion in the third quarter.
Palantir Stock After Earnings: Buy, Hold or Sell Now?
Palantir's robust revenues and earnings highlight accelerating demand for its AI products, positioning the company for strong growth in the years ahead. Management raised its full-year 2026 revenue guidance to around $8.53 billion, well above Wall Street expectations, and expects $2.65 billion in fourth-quarter revenues. This should encourage stakeholders to stay invested.
However, new investors should exercise caution before investing in Palantir stock at its current lofty valuation. This is because elevated market expectations mean that any disappointment in performance could pull the shares down. This was evident as shares fell 3.1% in after-hours trading following the earnings announcement. The decline was partly because of slower year-over-year growth in U.S. commercial contract value compared with the previous quarter.
Nonetheless, Palantir remains significantly overvalued compared to the Internet - Software industry, with a forward price-to-earnings (P/E) ratio of 110.26 compared to the industry's 31.98.???
Palantir currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here.??????
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.