Texas Instruments (TXN) Outpaces Stock Market Gains: What You Should Know
Texas Instruments (TXN) closed at $190.26 in the latest trading session, marking a +0.84% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.18%.
Heading into today, shares of the chipmaker had gained 2.95% over the past month, lagging the Computer and Technology sector's gain of 6.46% and outpacing the S&P 500's gain of 2.43% in that time.
Wall Street will be looking for positivity from TXN as it approaches its next earnings report date. The company is expected to report EPS of $1.81, up 22.3% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.32 billion, up 33.32% from the prior-year quarter.
TXN's full-year Zacks Consensus Estimates are calling for earnings of $7.39 per share and revenue of $17.4 billion. These results would represent year-over-year changes of +23.79% and +20.3%, respectively.
Any recent changes to analyst estimates for TXN should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.44% higher within the past month. TXN is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, TXN is holding a Forward P/E ratio of 25.53. Its industry sports an average Forward P/E of 23.21, so we one might conclude that TXN is trading at a premium comparatively.
Meanwhile, TXN's PEG ratio is currently 2.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TXN's industry had an average PEG ratio of 2.56 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
