Texas Instruments (TXN) Suffers a Larger Drop Than the General Market: Key Insights

Texas Instruments (TXN) closed the latest trading day at $187.96, indicating a -1.68% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 1.07% for the day. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 1.19%.The the stock of chipmaker has fallen by 4.9% in the past month, lagging the Computer and Technology sector's gain of 4.8% and the S&P 500's loss of 0.36%.The upcoming earnings release of Texas Instruments will be of great interest to investors. The company is predicted to post an EPS of $1.19, indicating a 20.13% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.86 billion, reflecting a 5.38% fall from the equivalent quarter last year.TXN's full-year Zacks Consensus Estimates are calling for earnings of $5.08 per share and revenue of $15.5 billion. These results would represent year-over-year changes of -28.15% and -11.52%, respectively.Investors might also notice recent changes to analyst estimates for Texas Instruments. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Texas Instruments boasts a Zacks Rank of #4 (Sell).Valuation is also important, so investors should note that Texas Instruments has a Forward P/E ratio of 37.63 right now. For comparison, its industry has an average Forward P/E of 31.69, which means Texas Instruments is trading at a premium to the group.It is also worth noting that TXN currently has a PEG ratio of 4.18. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - General industry currently had an average PEG ratio of 3.1 as of yesterday's close.The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 80, finds itself in the top 32% echelons of all 250+ industries.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.To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.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