Why the Market Dipped But Texas Instruments (TXN) Gained Today

Zacks
04-16

The latest trading session saw Texas Instruments (TXN) ending at $151.18, denoting a +0.13% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.17%. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Shares of the chipmaker witnessed a loss of 16.12% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 6.26% and the S&P 500's loss of 3.94%.

Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 23, 2025. In that report, analysts expect Texas Instruments to post earnings of $1.06 per share. This would mark a year-over-year decline of 11.67%. Simultaneously, our latest consensus estimate expects the revenue to be $3.91 billion, showing a 6.74% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.35 per share and revenue of $17.03 billion, which would represent changes of +2.88% and +8.89%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Texas Instruments is carrying a Zacks Rank of #3 (Hold).

Investors should also note Texas Instruments's current valuation metrics, including its Forward P/E ratio of 28.23. This indicates a premium in contrast to its industry's Forward P/E of 24.45.

Investors should also note that TXN has a PEG ratio of 2.44 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.71 based on yesterday's closing prices.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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