Is TXN Stock a Buy, Sell or Hold at a P/E Multiple of 34.85X?

Zacks11-29

Texas Instruments Incorporated TXN, a global leader in analog and embedded processing semiconductors, currently trades at a forward 12-month price-to-earnings (P/E) ratio of 34.84. This valuation is ...

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This valuation is ...</p>\n\n<a href=\"https://finance.yahoo.com/news/txn-stock-buy-sell-hold-131500016.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1804176565.USD","symbol_name":"EASTSPRING INV GLOBAL GROWTH EQUITY \"A\" (USD) ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/txn-stock-buy-sell-hold-131500016.html","article_id":"2487568355","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/EEa6bvQgPJQx5hd.yXNHpA--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/b63375e1154ac83fb8cbeef632d2a6fd"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2487568355","pubTimestamp":1732886100,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Texas Instruments Incorporated TXN, a global leader in analog and embedded processing semiconductors, currently trades at a forward 12-month price-to-earnings (P/E) ratio of 34.84. 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This underperformance reflects several near-term challenges that have weighed on investor sentiment.One of TXN’s brightest spots is the automotive market, where the company has seen strong growth driven by rising demand for electric vehicles  and advanced dri","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1804176565.USD":"EASTSPRING INV GLOBAL GROWTH EQUITY \"A\" (USD) ACC","LU1323610961.USD":"UBS (LUX) EQUITY SICAV - LONG TERM THEMES (USD) \"P\" (USD) ACC","IE00B775H168.HKD":"JANUS HENDERSON BALANCED \"A5M\" (HKD) INC","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","LU1721428933.USD":"法巴全球经典环境基金RH MD Dis","LU2756315664.SGD":"ALLIANZ INCOME AND GROWTH \"AMI\" (SGDHDG) INC","LU2361044949.HKD":"WELLINGTON US QUALITY GROWTH \"A\" (HKD) ACC","3NVD.UK":"LS 3X NVIDIA","LU0057025933.USD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (USD) ACC","LU1084165304.USD":"FIDELITY WORLD \"A\" (USD) ACC","LU0823414478.USD":"法巴经典能源转换基金","IE00BK4W5M84.HKD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (HKD) ACC","LU2236285917.USD":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","LU0345769128.USD":"NINETY ONE GSF GLOBAL EQUITY \"A\" (USD) ACC","2NVD.UK":"2X NVIDIA ETP","LU0234572021.USD":"高盛美国核心股票组合Acc","TXN":"德州仪器","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU0276348264.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN\"AUP\" (USD) INC","MRVL":"迈威尔科技","LU0444971666.USD":"天利全球科技基金","LU1951200564.SGD":"Natixis Thematics AI & Robotics Fund R/A SGD","NVD":"GraniteShares 2x Short NVDA Daily ETF","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","NVDD":"Direxion Daily NVDA Bear 1X Shares","LU1629891620.HKD":"ALLIANZ INCOME AND GROWTH \"AMG2\" (H2-HKD) INC","NVDS.UK":"LS -1X NVIDIA","SG9999003800.SGD":"Nikko AM Global Dividend Equity Acc SGD-H","BK4532":"文艺复兴科技持仓","LU0528227936.USD":"富达环球人口趋势基金A-ACC","NVD3.UK":"LS 3X NVIDIA","SG9999014575.USD":"UOB UNITED INCOME FOCUS TRUST FUND (USDHDG) INC","LU2065171311.SGD":"M&G (LUX) GLOBAL MAXIMA \"A\" (SGD) ACC","LU2420271590.USD":"ALLIANZ SELECT INCOME AND GROWTH \"AT\" (USD) ACC","LU2430703095.HKD":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4\" (HKD) INC","NVD2.UK":"2X NVIDIA ETP","ASYS":"Amtech Systems","NVDA":"英伟达","SNVD.UK":"LS -1X NVIDIA","NVDS":"Tradr 1.5X Short NVDA Daily ETF","LU0072462426.USD":"贝莱德全球配置 A2","LU1066051811.HKD":"HSBC GIF GLOBAL EQUITY VOLATILITY FOCUSED \"AM2\" (HKD) INC","NVDU":"Direxion Daily NVDA Bull 2X Shares","LU1623119135.USD":"Natixis Mirova Global Sustainable Equity R-NPF/A USD","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","SG9999011175.SGD":"Nikko AM Global Dividend Equity Dis SGD-H","NVDX":"T-REX 2X LONG NVIDIA DAILY TARGET ETF","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","NVDY":"YIELDMAX NVDA OPTION INCOME STRATEGY ETF"},"translate_title":"TXN股票是以34.85倍的市盈率买入、卖出还是持有？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TXN":1,"ASYS":1,"MRVL":1,"NVDA":1,"NVD":0.6,"NVD2.UK":0.6,"NVD3.UK":0.6,"NVDD":0.6,"NVDS":0.6,"NVDS.UK":0.6,"NVDU":0.6,"NVDX":0.6,"NVDY":0.6,"SNVD.UK":0.6,"3NVD.UK":0.6,"2NVD.UK":0.6},"content_text":"Texas Instruments Incorporated TXN, a global leader in analog and embedded processing semiconductors, currently trades at a forward 12-month price-to-earnings (P/E) ratio of 34.84. This valuation is lower than the Zacks Semiconductor – General industry average of 37.16, suggesting that TXN offers a relatively discounted entry point compared to its peers. However, despite its valuation advantage, the company’s stock performance tells a different story.\nImage Source: Zacks Investment Research\nYear to date, shares of Texas Instruments have risen just 16.8%, significantly lagging behind the industry’s remarkable 122.2% surge. It has also underperformed major semiconductor players, including NVIDIA Corporation NVDA, Amtech Systems, Inc. ASYS and Marvell Technology, Inc. MRVL. This underperformance reflects several near-term challenges that have weighed on investor sentiment.\nYTD Price Return Performance\nImage Source: Zacks Investment Research\nChallenges Impacting Texas Instruments’ Performance\nThe industrial market has been a persistent drag. In the third quarter of 2024, revenues from this segment declined sequentially in the low-single-digit percentage, marking eight consecutive quarters of contraction. Macroeconomic uncertainties and a slower-than-expected recovery in customer capital expenditures have dampened growth in this key end market.\nInventory challenges remain a pressing concern for Texas Instruments. At the end of the third quarter, the company’s inventory levels reached $4.3 billion, far exceeding historical norms. While this build-up ensures the company can meet demand when markets recover, it poses risks of obsolescence and could pressure margins in the near term if market conditions don’t improve quickly.\nThe semiconductor industry’s inherent cyclicality has also been a headwind. End-market demand for analog and embedded processing products has softened, exacerbated by prolonged weakness in sectors like industrial and personal electronics. The competitive landscape, with strong players like Analog Devices and ON Semiconductor, adds further pressure.\nFrom a technical standpoint, Texas Instruments shares are trading below their 50-day moving average, which can be viewed as a bearish signal. This suggests that the stock could face some short-term downward pressure.\n50-Day Moving Average Signals Bearish Trend\nImage Source: Zacks Investment Research\nFactors in Favor of Texas Instruments\nDespite its near-term hurdles, Texas Instruments remains a compelling story for long-term investors due to its strategic initiatives and robust fundamentals.\nOne of TXN’s brightest spots is the automotive market, where the company has seen strong growth driven by rising demand for electric vehicles (EVs) and advanced driver-assistance systems. In the third quarter, automotive revenues grew in the upper-single-digit percentage sequentially, supported by increased adoption of semiconductor-rich EV systems and safety technologies.\nAs the global transition toward EVs and autonomous vehicles accelerates, Texas Instruments is well-positioned to benefit from these secular growth trends. The company’s strategic focus on automotive chips tailored for power efficiency and advanced features solidifies its standing in this rapidly growing sector.\nTexas Instruments’ diversified portfolio across industrial, automotive and communications sectors provides a buffer against market volatility. Its products are essential components in high-demand applications such as renewable energy systems, factory automation and 5G infrastructure. This diversification ensures the company can weather downturns in specific sectors while capitalizing on growth in others.\nTexas Instruments has doubled its capacity expansion strategy, particularly in building advanced 300-mm wafer fabs. The company plans to invest approximately $5 billion annually over the next couple of years to enhance its manufacturing capabilities. This investment not only ensures TXN can meet future demand but also strengthens its competitive position by reducing reliance on external suppliers.\nConclusion: Hold TXN Stock for Now\nTexas Instruments’ current valuation, coupled with its strong fundamentals, makes it a stock worth holding. While near-term challenges, including industrial market weakness and elevated inventory levels, have weighed on its share price, the company’s long-term growth prospects remain intact.\nThe automotive sector’s robust demand and strategic capacity investments provide a solid foundation for future growth. However, given the ongoing cyclical pressures and competitive landscape, the immediate upside may be limited.\nFor investors seeking a balance of stability and growth potential in the semiconductor space, Texas Instruments offers a compelling hold opportunity. Staying invested allows shareholders to benefit from its long-term strengths while waiting for market conditions to improve. TXN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant 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\nTexas Instruments Incorporated (TXN) : Free Stock Analysis Report\nNVIDIA Corporation (NVDA) : Free Stock Analysis Report\nMarvell Technology, Inc. (MRVL) : Free Stock Analysis Report\nAmtech Systems, Inc. (ASYS) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2487568355"}