US Nasdaq stock alert

USA

CLOSING UPDATE: Texas Instruments down 2.1% in 2 days 24 July 2017 17:53 EDT

NEWS BITES - NORTH AMERICA

This is an end of day Alert, produced after today's NASDAQ market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Texas Instruments, NASDAQ's 4th largest semiconductors & related devices company by market capitalisation, extended its slide on Monday, shedding an additional 78.0c (or 1.0%) to trade at $US80.92. Trading volume was 90% of average at the end of the day. The shares have fallen $US1.77 (or 2.1%) over the past two trading days vs. the NASDAQ-100 Index which has risen 0.3% in the same period.

Technical indicators complementing today's significant downtrend:

+ The price decreased 0.9% in the last week.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Price/Sales of 5.8 [3.9]

Other Bearish Signals include:

+ Tobin's Q Ratio is 4.9. Compared with the rest of the market the stock is overvalued and ranks in the bottom 9% of stocks by value of Q Ratio.

Note

The stock has outperformed 55% of the NASDAQ market over the past 6 months.

Bullish Signals:

The positive 0.63 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

In the last three months the stock has hit a new 52-week high five times, pointing to an uptrend.

Interest cover is less leveraged at 62.6 times.

Total Liabilities/EBITDA of 1.1 is comfortably below the Joseph Piotroski benchmark of <5.

Net profit margin has averaged 23.8% in the last 3 years. This is considered superior and suggests a high margin of safety.

As per the Du Pont analysis, Return on Equity is high at 34.3%. Also, this has improved from 30% last year.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Price/Earnings of 20.5 [31.6]

Dividend yield of 2.3% [1.6%]

Return on Equity 34.3% [12.5%]

Return on Assets 21.9% [6.7%]

Return on Capital Employed 35.4% [8.4%]

TODAY'S ALERT

Morning Alert: Texas Instruments decreases 0.6%, leads Semiconductors & related devices sector lower

24 July 2017 11:01 EDT

Texas Instruments Incorporated (NASDAQ:TXN) has decreased 0.6% to trade at $US81.20 vs. the Semiconductors & related devices sector which weakened 15.0 points (or 0.3%) to 5,783.2. Representing a weighting of about 12.1% of the sector, the stock accounted for 28.5% of today's loss.

Texas Instruments Incorporated (O:TXN)

ISIN: US8825081040

PermID: 4295905063

CIK: 97476

CUSIP: 882508104

Source: www.BuySellSignals.com