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

In the latest market close, Texas Instruments (TXN) reached $168.63, with a +0.05% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.15% for the day. Elsewhere, the Dow saw a downswing of 0.42%, while the tech-heavy Nasdaq appreciated by 0.09%.

Shares of the chipmaker have appreciated by 5.36% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 3.5%.

Market participants will be closely following the financial results of Texas Instruments in its upcoming release. The company plans to announce its earnings on January 23, 2024. The company's upcoming EPS is projected at $1.46, signifying a 31.46% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.11 billion, down 11.92% from the prior-year quarter.

Investors should also pay attention to any latest changes in analyst estimates for Texas Instruments. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, there's been a 0.32% fall in the Zacks Consensus EPS estimate. Texas Instruments is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note Texas Instruments's current valuation metrics, including its Forward P/E ratio of 25.78. Its industry sports an average Forward P/E of 23.27, so one might conclude that Texas Instruments is trading at a premium comparatively.

Meanwhile, TXN's PEG ratio is currently 2.86. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Semiconductor - General industry currently had an average PEG ratio of 3.01 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 191, this industry ranks in the bottom 25% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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