Today's Pre-Market Trading Very Positive For Texas Instruments (TXN)

Trade-Ideas LLC identified Texas Instruments (TXN) as a pre-market leader candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Texas Instruments

(

TXN

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Texas Instruments as such a stock due to the following factors:

  • TXN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $364.1 million.
  • TXN traded 24,906 shares today in the pre-market hours as of 7:49 AM.
  • TXN is up 6.6% today from Friday's close.

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More details on TXN:

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates through two segments, Analog and Embedded Processing. The stock currently has a dividend yield of 2.3%. TXN has a PE ratio of 23. Currently there are 8 analysts that rate Texas Instruments a buy, 2 analysts rate it a sell, and 15 rate it a hold.

The average volume for Texas Instruments has been 5.3 million shares per day over the past 30 days. Texas Instruments has a market cap of $65.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.29 and a short float of 3.2% with 5.32 days to cover. Shares are up 19.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Texas Instruments as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 29.22% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TXN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • TEXAS INSTRUMENTS INC has improved earnings per share by 6.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TEXAS INSTRUMENTS INC increased its bottom line by earning $2.82 versus $2.58 in the prior year. This year, the market expects an improvement in earnings ($2.95 versus $2.82).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Semiconductors & Semiconductor Equipment industry average, but is less than that of the S&P 500. The net income increased by 1.8% when compared to the same quarter one year prior, going from $656.00 million to $668.00 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, TEXAS INSTRUMENTS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for TEXAS INSTRUMENTS INC is rather high; currently it is at 66.26%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.20% significantly outperformed against the industry average.

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