Trade-Ideas: Texas Instruments (TXN) Is Today's Post-Market Laggard Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Texas Instruments ( TXN) as a post-market laggard 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 $220.9 million.
  • TXN is down 2.2% today from today's close.

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More details on TXN:

Texas Instruments Incorporated engages in the design, manufacture, sale of semiconductors to electronics designers and manufacturers worldwide. The company operates in four segments: Analog, Embedded Processing, Wireless, and Other. The stock currently has a dividend yield of 2.9%. TXN has a PE ratio of 21.4. Currently there are 9 analysts that rate Texas Instruments a buy, 4 analysts rate it a sell, and 20 rate it a hold.

The average volume for Texas Instruments has been 7.6 million shares per day over the past 30 days. Texas Instruments has a market cap of $42.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.35 and a short float of 2.5% with 3.96 days to cover. Shares are up 25.4% year to date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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, compelling growth in net income, notable return on equity, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 52.63% and other important driving factors, this stock has surged by 29.26% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 48.0% when compared to the same quarter one year prior, rising from $446.00 million to $660.00 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 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 58.91%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.66% is above that of the industry average.
  • Net operating cash flow has remained constant at $675.00 million with no significant change when compared to the same quarter last year. Along with maintaining stable cash flow from operations, the firm exceeded the industry average cash flow growth rate of -22.21%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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