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

In the latest trading session, Texas Instruments (TXN) closed at $195.68, marking a +0.4% move from the previous day. This change outpaced the S&P 500's 0.6% loss on the day. Elsewhere, the Dow lost 0.86%, while the tech-heavy Nasdaq lost 1.08%.

The chipmaker's shares have seen an increase of 11.25% over the last month, surpassing the Computer and Technology sector's gain of 7.76% and the S&P 500's gain of 3.15%.

Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. In that report, analysts expect Texas Instruments to post earnings of $1.16 per share. This would mark a year-over-year decline of 37.97%. At the same time, our most recent consensus estimate is projecting a revenue of $3.8 billion, reflecting a 16.15% fall from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.17 per share and a revenue of $15.74 billion, signifying shifts of -26.87% and -10.18%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.85% lower. Texas Instruments is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Texas Instruments is holding a Forward P/E ratio of 37.72. Its industry sports an average Forward P/E of 28.1, so one might conclude that Texas Instruments is trading at a premium comparatively.

Investors should also note that TXN has a PEG ratio of 4.19 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. The Semiconductor - General industry currently had an average PEG ratio of 2.52 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 39% of all 250+ industries.

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.

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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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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