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Sarah Patel's Avatar
published in Blogs
Jul 22, 2021

Texas Instruments (TXN, $194.24) beats Q2 earnings estimates; but fails to impress on guidance

Texas Instruments Inc.  posted its second-quarter results that surpassed analysts' expectations. However, the company provided a guidance that turned out to be not so impressive.

The semiconductor manufacturer’s second quarter earnings came in at $2.05 per share, beating analyst expectations of $1.83 per share.

Revenue grew +41% from the year-ago quarter to $4.58 billion, also exceeding estimates of $4.36 billion.

For the third quarter, Texas Instruments has projected an earnings range of $1.87 per share to $2.13 per share –$1.97 per share expected by analysts polled by FactSet.  The company expects revenue to range between $4.4 billion and $4.76 billion, vs. $4.59 billion forecasted by analysts.

 

Related Ticker: TXN

TXN's RSI Oscillator recovers from oversold territory

The RSI Oscillator for TXN moved out of oversold territory on May 05, 2023. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 21 similar instances when the indicator left oversold territory. In of the 21 cases the stock moved higher. This puts the odds of a move higher at .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on May 16, 2023. You may want to consider a long position or call options on TXN as a result. In of 103 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for TXN just turned positive on May 15, 2023. Looking at past instances where TXN's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .

The 10-day moving average for TXN crossed bullishly above the 50-day moving average on June 01, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TXN advanced for three days, in of 303 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 265 cases where TXN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Bearish Trend Analysis

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 68 cases where TXN's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .

TXN moved below its 50-day moving average on June 05, 2023 date and that indicates a change from an upward trend to a downward trend.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where TXN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

TXN broke above its upper Bollinger Band on May 26, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

Fear & Greed

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 64, placing this stock better than average.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.142) is normal, around the industry mean (7.053). P/E Ratio (19.120) is within average values for comparable stocks, (54.079). Projected Growth (PEG Ratio) (3.102) is also within normal values, averaging (2.571). Dividend Yield (0.029) settles around the average of (0.024) among similar stocks. P/S Ratio (8.045) is also within normal values, averaging (11.823).

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. TXN’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

Notable companies

The most notable companies in this group are NVIDIA Corp (NASDAQ:NVDA), Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM), Broadcom (NASDAQ:AVGO), Advanced Micro Devices (NASDAQ:AMD), Texas Instruments (NASDAQ:TXN), Intel Corp (NASDAQ:INTC), QUALCOMM (NASDAQ:QCOM), Applied Materials (NASDAQ:AMAT), Analog Devices (NASDAQ:ADI), Lam Research Corp (NASDAQ:LRCX).

Industry description

The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.

Market Cap

The average market capitalization across the Semiconductors Industry is 27.71B. The market cap for tickers in the group ranges from 13.43K to 967.52B. NVDA holds the highest valuation in this group at 967.52B. The lowest valued company is CYBL at 13.43K.

High and low price notable news

The average weekly price growth across all stocks in the Semiconductors Industry was -0%. For the same Industry, the average monthly price growth was 13%, and the average quarterly price growth was 20%. ARRXF experienced the highest price growth at 38%, while WKEY experienced the biggest fall at -27%.

Volume

The average weekly volume growth across all stocks in the Semiconductors Industry was -77%. For the same stocks of the Industry, the average monthly volume growth was -56% and the average quarterly volume growth was -43%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 52
P/E Growth Rating: 55
Price Growth Rating: 49
SMR Rating: 62
Profit Risk Rating: 64
Seasonality Score: 2 (-100 ... +100)
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Technical Analysis# Of IndicatorsAvg. Odds
   
   
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A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

a manufacturer of integrated circuit semiconductors and calculators

Industry Semiconductors

Profile
Fundamentals
Details
Industry
Semiconductors
Address
12500 TI Boulevard
Phone
+1 214 479-3773
Employees
33000
Web
https://www.ti.com
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TXN and

Correlation & Price change

A.I.dvisor indicates that over the last year, TXN has been closely correlated with MCHP. These tickers have moved in lockstep 87% of the time. This A.I.-generated data suggests there is a high statistical probability that if TXN jumps, then MCHP could also see price increases.

1D
1W
1M
1Q
6M
1Y
5Y
Ticker /
NAME
Correlation
To TXN
1D Price
Change %
TXN100%
-2.84%
MCHP - TXN
87%
Closely correlated
-2.50%
ADI - TXN
84%
Closely correlated
-2.68%
AMAT - TXN
84%
Closely correlated
-0.67%
NXPI - TXN
83%
Closely correlated
-2.78%
TER - TXN
82%
Closely correlated
-1.65%
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