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Texas Instruments (TXN) Stock Dips While Market Gains: Key Facts

In the latest market close, Texas Instruments (TXN) reached $197.44, with a -0.09% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.27%. Elsewhere, the Dow saw a downswing of 0.31%, while the tech-heavy Nasdaq appreciated by 0.88%.

Shares of the chipmaker witnessed a gain of 5.22% over the previous month, beating the performance of the Computer and Technology sector with its loss of 4.82% and the S&P 500's gain of 2.85%.

The investment community will be paying close attention to the earnings performance of Texas Instruments in its upcoming release. On that day, Texas Instruments is projected to report earnings of $1.16 per share, which would represent a year-over-year decline of 37.97%. In the meantime, our current consensus estimate forecasts the revenue to be $3.8 billion, indicating a 16.15% decline compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.13 per share and a revenue of $15.74 billion, representing changes of -27.44% and -10.18%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.7% lower. Texas Instruments presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Texas Instruments is currently exchanging hands at a Forward P/E ratio of 38.53. For comparison, its industry has an average Forward P/E of 29.14, which means Texas Instruments is trading at a premium to the group.

Investors should also note that TXN has a PEG ratio of 4.28 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. TXN's industry had an average PEG ratio of 2.7 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 37% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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