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Texas Instruments (TXN) Stock Slides as Market Rises: Facts to Know Before You Trade
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In the latest market close, Texas Instruments (TXN - Free Report) reached $189.42, with a -1.13% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq increased by 1.24%.
Shares of the chipmaker have depreciated by 4.74% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.43% and the S&P 500's gain of 1.17%.
The investment community will be closely monitoring the performance of Texas Instruments in its forthcoming earnings report. On that day, Texas Instruments is projected to report earnings of $1.19 per share, which would represent a year-over-year decline of 20.13%. At the same time, our most recent consensus estimate is projecting a revenue of $3.86 billion, reflecting a 5.38% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.08 per share and revenue of $15.5 billion, which would represent changes of -28.15% and -11.52%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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, there's been no change in the Zacks Consensus EPS estimate. Texas Instruments is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Texas Instruments is holding a Forward P/E ratio of 37.71. This represents a premium compared to its industry's average Forward P/E of 32.12.
One should further note that TXN currently holds a PEG ratio of 4.19. 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. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 3.2.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Texas Instruments (TXN) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest market close, Texas Instruments (TXN - Free Report) reached $189.42, with a -1.13% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq increased by 1.24%.
Shares of the chipmaker have depreciated by 4.74% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.43% and the S&P 500's gain of 1.17%.
The investment community will be closely monitoring the performance of Texas Instruments in its forthcoming earnings report. On that day, Texas Instruments is projected to report earnings of $1.19 per share, which would represent a year-over-year decline of 20.13%. At the same time, our most recent consensus estimate is projecting a revenue of $3.86 billion, reflecting a 5.38% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.08 per share and revenue of $15.5 billion, which would represent changes of -28.15% and -11.52%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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, there's been no change in the Zacks Consensus EPS estimate. Texas Instruments is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Texas Instruments is holding a Forward P/E ratio of 37.71. This represents a premium compared to its industry's average Forward P/E of 32.12.
One should further note that TXN currently holds a PEG ratio of 4.19. 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. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 3.2.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.