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Stocks (from 31) “Nevertheless, the company’s efficient
manufacturing strategies and continuous
For the full year 2021, TI reported revenue returns to shareholders are likely to instill
of $18.34 billion compared to $14.46 bil- investors’ optimism in the stock. Its sub-
lion for 2020. stantial investments in growth avenues
and competitive advantages are other
Stock due for a breakout? positives,” Zacks concluded.
“It has been about a month since the last
earnings report for Texas Instruments. “Chipset bigwigs”
Shares have lost about 7.1% in that time In another posting on Yahoo!Finance (Feb-
frame, underperforming the S&P 500,” ruary 9), Zack says TI is one of its five
Zacks Equity Research opined. top “chipset bigwig” picks. The others are
AMD, Analog Devices — TI’s chief analog
rival — NVIDIA and Qualcomm.
“These stocks have strong growth poten-
tial for 2022 and have seen solid earnings
estimate revisions within the last 30 days.
Each of our picks carries either a Zacks
Rank #1 (Strong Buy) or 2 (Buy).
“Texas Instruments is benefiting from
growth in the personal electronics market
owing to the coronavirus-led work-from-
Architect’s rendering for the new Sherman, Texas wafer fab site.
home trend. Additionally, solid momentum
“Will the recent negative trend continue across the Analog segment owing to ro-
leading up to its next earnings release, or bust signal chain and power product lines,
is Texas Instruments due for a breakout? is benefiting the top line of TXN.”
Zacks continued.
Automotive market
The management’s guidance, said Zacks, “The continued rebound in the automo-
was within $4.22-$4.58 billion. Also, rev- tive market is a tailwind for Texas Instru-
enues beat the Zacks consensus estimate ments. Solid growth in the industrial mar-
of $4.44 billion. ket is another positive for TXN. Strategic
investments in new growth avenues and
Solid demand environment competitive advantages should also reap
“Top-line growth was driven by a solid de- results in the long term,” Zacks said.
mand environment across automotive and
industrial end markets. “TXN’s portfolio of long-lived products and
efficient manufacturing strategies are the
“Also, the growing momentum across the other catalysts.
communication equipment and enterprise
systems markets contributed well. Strong Zacks Ranks Texas Instruments a “strong
performance delivered by the Analog and buy,” because of an expected earnings
Embedded Processing segments drove the growth rate of 10.5% for the current year.”
results. However, softness in the personal
electronics market was concerning. next page
