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Texas Instruments (TXN) Exceeds Market Returns: Some Facts to Consider
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In the latest market close, Texas Instruments (TXN - Free Report) reached $208.66, with a +1.73% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.77%. On the other hand, the Dow registered a gain of 0.47%, and the technology-centric Nasdaq increased by 0.87%.
The chipmaker's shares have seen an increase of 2.59% over the last month, not keeping up with the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 4.87%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 22, 2024. The company is forecasted to report an EPS of $1.36, showcasing a 24.44% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $4.11 billion, reflecting a 9.3% fall from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.11 per share and revenue of $15.7 billion, indicating changes of -27.72% and -10.36%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% lower. Right now, Texas Instruments possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Texas Instruments is currently being traded at a Forward P/E ratio of 40.17. Its industry sports an average Forward P/E of 24.64, so one might conclude that Texas Instruments is trading at a premium comparatively.
It is also worth noting that TXN currently has a PEG ratio of 4.46. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - General industry had an average PEG ratio of 3.95 as trading concluded yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 186, this industry ranks in the bottom 27% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Texas Instruments (TXN) Exceeds Market Returns: Some Facts to Consider
In the latest market close, Texas Instruments (TXN - Free Report) reached $208.66, with a +1.73% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.77%. On the other hand, the Dow registered a gain of 0.47%, and the technology-centric Nasdaq increased by 0.87%.
The chipmaker's shares have seen an increase of 2.59% over the last month, not keeping up with the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 4.87%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 22, 2024. The company is forecasted to report an EPS of $1.36, showcasing a 24.44% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $4.11 billion, reflecting a 9.3% fall from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.11 per share and revenue of $15.7 billion, indicating changes of -27.72% and -10.36%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% lower. Right now, Texas Instruments possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Texas Instruments is currently being traded at a Forward P/E ratio of 40.17. Its industry sports an average Forward P/E of 24.64, so one might conclude that Texas Instruments is trading at a premium comparatively.
It is also worth noting that TXN currently has a PEG ratio of 4.46. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - General industry had an average PEG ratio of 3.95 as trading concluded yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 186, this industry ranks in the bottom 27% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.