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Texas Instruments (TXN) Dips More Than Broader Markets: What You Should Know

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Texas Instruments (TXN - Free Report) closed the most recent trading day at $121.37, moving -0.52% from the previous trading session. This change lagged the S&P 500's 0.11% loss on the day. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.07%.

Coming into today, shares of the chipmaker had gained 3.32% in the past month. In that same time, the Computer and Technology sector gained 1.17%, while the S&P 500 gained 1.62%.

Investors will be hoping for strength from TXN as it approaches its next earnings release. In that report, analysts expect TXN to post earnings of $1.02 per share. This would mark a year-over-year decline of 19.69%. Meanwhile, our latest consensus estimate is calling for revenue of $3.22 billion, down 13.28% from the prior-year quarter.

TXN's full-year Zacks Consensus Estimates are calling for earnings of $5.14 per share and revenue of $14.26 billion. These results would represent year-over-year changes of -8.05% and -9.68%, respectively.

Investors should also note any recent changes to analyst estimates for TXN. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TXN is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note TXN's current valuation metrics, including its Forward P/E ratio of 23.75. Its industry sports an average Forward P/E of 22.85, so we one might conclude that TXN is trading at a premium comparatively.

Meanwhile, TXN's PEG ratio is currently 2.35. 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. TXN's industry had an average PEG ratio of 1.99 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.


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