Texas Instruments (TXN) Beats Stock Market Upswing: What Investors Need to Know

The most recent trading session ended with Texas Instruments (TXN) standing at $190.14, reflecting a +1.75% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.73%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw an increase of 0.98%.Prior to today's trading, shares of the chipmaker had lost 5.62% over the past month. This has lagged the Computer and Technology sector's gain of 3.28% and the S&P 500's gain of 0.34% in that time.The investment community will be closely monitoring the performance of Texas Instruments in its forthcoming earnings report. In that report, analysts expect Texas Instruments to post earnings of $1.19 per share. This would mark a year-over-year decline of 20.13%. Alongside, our most recent consensus estimate is anticipating revenue of $3.86 billion, indicating a 5.38% downward movement from the same quarter last year.For the full year, the Zacks Consensus Estimates project earnings of $5.08 per share and a revenue of $15.5 billion, demonstrating changes of -28.15% and -11.52%, respectively, from the preceding year.Investors might also notice recent changes to analyst estimates for Texas Instruments. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Texas Instruments is currently a Zacks Rank #3 (Hold).From a valuation perspective, Texas Instruments is currently exchanging hands at a Forward P/E ratio of 36.78. This valuation marks a premium compared to its industry's average Forward P/E of 31.62.It's also important to note that TXN currently trades at a PEG ratio of 4.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 2.99.The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% 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.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Texas Instruments Incorporated (TXN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks