Back to top

Image: Bigstock

Texas Instruments (TXN) Beats Stock Market Upswing: What Investors Need to Know

Read MoreHide Full Article

Texas Instruments (TXN - Free Report) closed the latest trading day at $191.09, indicating a +0.49% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.86%, while the tech-heavy Nasdaq lost 0.38%.

Prior to today's trading, shares of the chipmaker had lost 0.75% over the past month. This has was narrower than the Computer and Technology sector's loss of 1.29% and the S&P 500's loss of 2.2% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Texas Instruments in its upcoming earnings disclosure. The company's earnings report is set to go public on January 23, 2025. The company's upcoming EPS is projected at $1.19, signifying a 20.13% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.86 billion, down 5.38% from the prior-year quarter.

Investors should also take note of any recent adjustments to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.01% lower. As of now, Texas Instruments holds a Zacks Rank of #4 (Sell).

Investors should also note Texas Instruments's current valuation metrics, including its Forward P/E ratio of 33.24. This denotes a premium relative to the industry's average Forward P/E of 23.93.

It is also worth noting that TXN currently has a PEG ratio of 3.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor - General stocks are, on average, holding a PEG ratio of 3.05 based on yesterday's closing prices.

The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 159, placing it within the bottom 37% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Texas Instruments Incorporated (TXN) - free report >>

Published in