Why Texas Instruments (TXN) Dipped More Than Broader Market Today

In the latest trading session, Texas Instruments (TXN) closed at $185.71, marking a -3.33% move from the previous day. This move lagged the S&P 500's daily loss of 0.34%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw an increase of 0.16%. The chipmaker's stock has climbed by 7.01% in the past month, exceeding the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.19%.The investment community will be paying close attention to the earnings performance of Texas Instruments in its upcoming release. The company is slated to reveal its earnings on January 27, 2026. It is anticipated that the company will report an EPS of $1.28, marking a 1.54% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $4.42 billion, showing a 10.38% escalation compared to the year-ago quarter. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.46 per share and revenue of $17.69 billion. These totals would mark changes of +5% and 0%, respectively, from last year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.67% upward. Texas Instruments is holding a Zacks Rank of #2 (Buy) right now. In the context of valuation, Texas Instruments is at present trading with a Forward P/E ratio of 31.97. This valuation marks a premium compared to its industry average Forward P/E of 31.88. It's also important to note that TXN currently trades at a PEG ratio of 3.1. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - General industry currently had an average PEG ratio of 3.39 as of yesterday's close. The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 20, positioning it in the top 9% 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. Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for 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