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magazineReasons why Texas Instruments shares are still worth buying
TEXAS INSTRUMENTS (TXN) $175.12
Gain to date: 53.1%
Original entry point: Buy at $114.42p, 21 May 2020
Analog microchips manufacturer Texas Instruments continues to knock the lights out after extending its long run of beating earnings expectations to 12 quarters in a row.
Investors who followed our original Great Idea in May last year will be sitting on 50%-plus returns, a superb performance for a company valued at more than $160 billion.
For the last quarter of 2020, Texas Instruments generated earnings per share (EPS) of $1.80, outstripping expectations for $1.34 by 34% and jumping 61% year-on-year. Revenue of $4.08 billion was 22% up year-on-year and 13% above forecast.
Analysts remain optimistic as the semiconductor upcycle swings through 2021 and possibly beyond. Consensus EPS estimates are currently pitched at $6.43 for the whole of this year, rising to $7.30 in 2022, compared with 2020’s $5.97.
Designing vital bits of technology kit and retaining extensive pricing power, the long-run growth potential we flagged originally looks as attractive today as it did then, and that bodes well for further share price gains as the world economy recovers from its Covid hangover.
SHARES SAYS: Still a buy for the longer-term.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
Issue contents
Editor's View
Feature
First-time Investor
Great Ideas
- New-look Bango is a great way to play online payments boom
- Reasons why Texas Instruments shares are still worth buying
- GlaxoSmithKline remains attractive despite delay to recovery
- The retail giant with a chance of beating Amazon
- Ocado delivers on growth at the expense of short-term earnings
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