Has Texas Instruments (TXN) Outpaced Other Computer and Technology Stocks This Year?

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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Texas Instruments (TXN) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of TXN and the rest of the Computer and Technology group's stocks.

Texas Instruments is a member of our Computer and Technology group, which includes 628 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. TXN is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for TXN's full-year earnings has moved 14.89% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, TXN has gained about 4.96% so far this year. In comparison, Computer and Technology companies have returned an average of 4.44%. This means that Texas Instruments is outperforming the sector as a whole this year.

Looking more specifically, TXN belongs to the Semiconductor - General industry, which includes 8 individual stocks and currently sits at #69 in the Zacks Industry Rank. This group has gained an average of 10.18% so far this year, so TXN is slightly underperforming its industry in this area.

Investors in the Computer and Technology sector will want to keep a close eye on TXN as it attempts to continue its solid performance.


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