Texas Instruments (TXN) Gains As Market Dips: What You Should Know

In the latest trading session, Texas Instruments (TXN) closed at $258.44, marking a +1.82% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.29%.

The chipmaker's shares have seen a decrease of 8.83% over the last month, not keeping up with the Computer and Technology sector's gain of 2.81% and the S&P 500's gain of 2.08%.

Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.39, reflecting a 61.49% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.91 billion, up 24.69% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $8.45 per share and a revenue of $21.7 billion, demonstrating changes of +55.05% and +22.73%, respectively, from the preceding year.

Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.82% upward. Texas Instruments is currently a Zacks Rank #2 (Buy).

Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 30.04. This represents a discount compared to its industry average Forward P/E of 35.05.

We can additionally observe that TXN currently boasts a PEG ratio of 1.42. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - General industry had an average PEG ratio of 1.77 as trading concluded yesterday.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 11% of all 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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