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

Texas Instruments (TXN) closed at $182.30 in the latest trading session, marking a +1.06% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.06%. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq increased by 0.39%. The stock of chipmaker has fallen by 7.84% in the past month, lagging the Computer and Technology sector's gain of 8.78% and the S&P 500's gain of 3.94%.The investment community will be closely monitoring the performance of Texas Instruments in its forthcoming earnings report. The company's upcoming EPS is projected at $1.48, signifying a 0.68% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.64 billion, up 11.88% from the prior-year quarter. For the full year, the Zacks Consensus Estimates are projecting earnings of $5.6 per share and revenue of $17.67 billion, which would represent changes of +7.69% and +12.96%, respectively, from the prior year. Investors should also pay attention to any latest changes in analyst estimates for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Texas Instruments presently features a Zacks Rank of #3 (Hold). In the context of valuation, Texas Instruments is at present trading with a Forward P/E ratio of 32.23. Its industry sports an average Forward P/E of 49.99, so one might conclude that Texas Instruments is trading at a discount comparatively. One should further note that TXN currently holds a PEG ratio of 2.95. 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 was holding an average PEG ratio of 5.39 at yesterday's closing price. The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250. The Zacks Industry Rank gauges the strength of our 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. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks