Weekly Chart For Texas Instruments Very Consistent And Impressive, But Can It Continue After Earnings

After the market bottomed in March ’20, there have been a number of stocks that have experienced huge bounces of 200%, 300%, and more. There have been some pretty phenomenal charts created as a result, but I don’t think I’ve seen a chart that shows a consistent climb to the degree of Texas Instruments (TXN).

After dropping to a low of $92.31 last March, the stock has been on a continuous trek higher with very few disruptions and it recently peaked at $197.58. The consistency has helped a trend channel form that defines the different cycles—even though the downward cycles have been brief.

TXN Tickeron TM.png

The 13-week moving average is almost a straight line and it’s pretty close to a perfect 45-degree angle. When you look at as many charts as I do each day, every once in a while one jumps out for one reason or another. In the case of Texas Instruments, the chart jumped out at me for how clean the trend higher has been.

Since last March’s low, the longest losing streak Texas Instruments has suffered was only three weeks. There have only been three instances where the stock fell for two straight weeks.

While the chart is very pretty (my wife thinks I’m crazy for making statements like that), the reason I am looking at Texas Instruments right now is because the company is getting ready to release first-quarter earnings results on April 27.

Analysts Expect Texas Instruments to Post Strong EPS and Revenue Growth

Over the last few years, Texas Instruments has seen somewhat low EPS and revenue growth rates, but the growth rates have jumped in recent quarters. In the fourth quarter of 2020, earnings jumped 61% while revenue increased by 22%. Over the last three years, earnings have only grown at an annual rate of 5% while revenue has actually declined by an average of 4% per year.

The current consensus estimate for Q1 is for EPS of $1.58 and that is 27.4% higher than the $1.24 the company reported last year. Revenue is expected to come in at $3.99 billion and that is 19.9% higher than the $3.33 billion the company reported in Q1 last year.

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