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MARKETS LIVE BLOG:

STOCKS RISE AS TECHS REVIVE, WITH NETFLIX EARNINGS ON TAP

Tesla shares slide to 52-week low; stock is down roughly 40% year-to-date

Texas Instruments (TXN) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Texas Instruments (TXN) closed at $99.17 in the latest trading session, marking a +1.67% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.32%. Elsewhere, the Dow gained 1.38%, while the tech-heavy Nasdaq added 1.74%.

Prior to today's trading, shares of the chipmaker had gained 8.27% over the past month. This has outpaced the Computer and Technology sector's gain of 2.64% and the S&P 500's gain of 4.16% in that time.

Investors will be hoping for strength from TXN as it approaches its next earnings release, which is expected to be January 23, 2019. The company is expected to report EPS of $1.24, up 13.76% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.75 billion, up 0.04% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for TXN. 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.

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Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.77% lower within the past month. TXN currently has a Zacks Rank of #3 (Hold).

Investors should also note TXN's current valuation metrics, including its Forward P/E ratio of 17.82. This represents a premium compared to its industry's average Forward P/E of 12.95.

It is also worth noting that TXN currently has a PEG ratio of 1.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TXN's industry had an average PEG ratio of 1.88 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 225, putting it in the bottom 13% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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