Dallas, Texas-based Texas Instruments Incorporated (TXN) designs, manufactures, and sells semiconductors to electronics designers and manufacturers. It is valued at a market cap of $255.7 billion.
This semiconductor company has notably outperformed the broader market over the past 52 weeks. Shares of TXN have rallied 73% over this time frame, while the broader S&P 500 Index ($SPX) has gained 28.5%. Moreover, on a YTD basis, the stock is up 62%, compared to SPX’s 6% rise.
However, narrowing the focus, TXN has considerably lagged the Invesco Semiconductors ETF’s (PSI) 191.3% rise over the past 52 weeks and 77.1% YTD return.
On Apr. 22, TXN reported stronger-than-expected Q1 results, prompting its shares to surge 19.4% in the subsequent trading session. The company’s revenue increased 18.6% year-over-year to $4.8 billion, with growth led by industrial and data center. Its top-line figure came in 6.9% ahead of analyst estimates. Meanwhile, its EPS of $1.68 advanced 31.3% from the year-ago quarter, handily topping consensus expectations of $1.37. Looking ahead, TXN expects Q2 revenue between $5 billion and $5.4 billion, with EPS in the range of $1.77 to $2.05. This guidance was also significantly above market expectations.
For the current fiscal year, ending in December, analysts expect TXN’s EPS to grow 39.5% year over year to $7.60. The company’s earnings surprise history is mixed. It topped the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 35 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 16 “Strong Buy,” 16 “Hold,” one "Moderate Sell,” and two "Strong Sell” ratings.
The configuration is more bullish than a month ago, with 13 analysts suggesting a "Strong Buy” rating and four recommending "Strong Sell.”
On Apr. 30, Jim Kelleher from Argus Research maintained a “Buy” rating on TXN, with a price target of $320, indicating a 13.9% potential upside from the current levels.
While the company is trading above its mean price target of $273.18, its Street-high price target of $330 suggests a 17.4% potential upside from the current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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