Texas Instruments (TXN) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Texas Instruments (TXN) closed at $190.18 in the latest trading session, marking a -1.69% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.35%, while the tech-heavy Nasdaq lost 0.25%.Shares of the chipmaker witnessed a loss of 10.39% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.7% and the S&P 500's gain of 1.09%.Market participants will be closely following the financial results of Texas Instruments in its upcoming release. The company is forecasted to report an EPS of $1.19, showcasing a 20.13% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.86 billion, down 5.38% from the year-ago period.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.08 per share and revenue of $15.5 billion, indicating changes of -28.15% and -11.52%, respectively, compared to the previous 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 past month, the Zacks Consensus EPS estimate has remained steady. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).Valuation is also important, so investors should note that Texas Instruments has a Forward P/E ratio of 38.08 right now. This signifies a premium in comparison to the average Forward P/E of 28.42 for its industry.We can also see that TXN currently has a PEG ratio of 4.23. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 3.23.The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 56, this industry ranks in the top 23% of all industries, numbering over 250.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.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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