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

In the latest trading session, Texas Instruments (TXN) closed at $127.04, marking a -0.05% move from the previous day. This move lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Prior to today's trading, shares of the chipmaker had gained 5.85% over the past month. This has outpaced the Computer and Technology sector's gain of 2.03% and the S&P 500's gain of 2.25% in that time.

Wall Street will be looking for positivity from TXN as it approaches its next earnings report date. In that report, analysts expect TXN to post earnings of $1.41 per share. This would mark a year-over-year decline of 10.76%. Our most recent consensus estimate is calling for quarterly revenue of $3.81 billion, down 10.58% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.33 per share and revenue of $14.69 billion. These totals would mark changes of -4.65% and -6.93%, respectively, from last year.

Any recent changes to analyst estimates for TXN should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. TXN is currently a Zacks Rank #3 (Hold).

Looking at its valuation, TXN is holding a Forward P/E ratio of 23.84. This represents a premium compared to its industry's average Forward P/E of 18.86.

Also, we should mention that TXN has a PEG ratio of 2.35. 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. TXN's industry had an average PEG ratio of 1.96 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 108, which puts it in the top 43% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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