Yahoo Finance Texas Instruments (TXN) Dips More Than Broader Markets: What You Should Know
Texas Instruments (TXN) closed at $177.50 in the latest trading session, marking a -1.64% move from the prior day. This move lagged the S&P 500's daily loss of 0.09%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.22%.
Heading into today, shares of the chipmaker had gained 13.86% over the past month, outpacing the Computer and Technology sector's gain of 7.08% and the S&P 500's gain of 5.55% in that time.
Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. In that report, analysts expect Texas Instruments to post earnings of $1.97 per share. This would mark a year-over-year decline of 13.22%. Meanwhile, our latest consensus estimate is calling for revenue of $4.61 billion, down 4.52% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.27 per share and revenue of $19.97 billion. These totals would mark changes of +12.23% and +8.84%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Texas Instruments is currently a Zacks Rank #3 (Hold).
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 19.46. This valuation marks a premium compared to its industry's average Forward P/E of 10.51.
Meanwhile, TXN's PEG ratio is currently 2.09. 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 2.07 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.
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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
