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Texas Instruments (TXN) Outperforms Broader Market: What You Need to Know
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Texas Instruments (TXN - Free Report) ended the recent trading session at $190.72, demonstrating a +1.4% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.01%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.32%.
The chipmaker's stock has climbed by 16.75% in the past month, exceeding the Computer and Technology sector's gain of 7.95% and the S&P 500's gain of 5.2%.
The upcoming earnings release of Texas Instruments will be of great interest to investors. The company is expected to report EPS of $1.32, up 8.2% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.31 billion, up 12.75% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.55 per share and a revenue of $17.29 billion, signifying shifts of +6.73% and +10.57%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Texas Instruments. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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% lower. Currently, Texas Instruments is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Texas Instruments is at present trading with a Forward P/E ratio of 33.9. This indicates a premium in contrast to its industry's Forward P/E of 33.6.
Investors should also note that TXN has a PEG ratio of 3.06 right now. 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 the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 2.22.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 40% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Texas Instruments (TXN) Outperforms Broader Market: What You Need to Know
Texas Instruments (TXN - Free Report) ended the recent trading session at $190.72, demonstrating a +1.4% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.01%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.32%.
The chipmaker's stock has climbed by 16.75% in the past month, exceeding the Computer and Technology sector's gain of 7.95% and the S&P 500's gain of 5.2%.
The upcoming earnings release of Texas Instruments will be of great interest to investors. The company is expected to report EPS of $1.32, up 8.2% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.31 billion, up 12.75% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.55 per share and a revenue of $17.29 billion, signifying shifts of +6.73% and +10.57%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Texas Instruments. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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% lower. Currently, Texas Instruments is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Texas Instruments is at present trading with a Forward P/E ratio of 33.9. This indicates a premium in contrast to its industry's Forward P/E of 33.6.
Investors should also note that TXN has a PEG ratio of 3.06 right now. 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 the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 2.22.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 40% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.