by Ian Harvey
August 13, 2019
Texas Instruments Incorporated (NASDAQ:TXN) stock has made steady progress upwards and analysts are very optimistic that this will continue - with Jefferies raising its target from $137 to $170.
Texas Instruments’ stock has risen from about $69 in August 2016 to around $130 as of yesterday. The rise was primarily driven by a steady growth in revenues and net income margins, accompanied by a drop in shares outstanding, and a slightly higher P/E multiple.
And, “Cut-To-The-Chase” Members make 85% potential profit with an Option Call, in 24 hours.
A NICE POTENTIAL PROFIT FOR THE WEEK!
Texas Instruments Incorporated (NASDAQ:TXN)’s revenue growth has largely been driven by growing consumer demand and company initiatives to stay ahead of competitors. As well Net Income Margin has grown from 26.89% in 2016 to 35.36% in 2018. This year it is expected to be a bit lower.
Semiconductors started the year out great but have had a tough time since China trade war concerns have intensified. But with optimism on the direction of talks on tariffs, chip stocks started showing relative strength. Texas Instruments stock is one of the original innovators in the space and has set up with a new cup base, and is starting to take advantage of that as was witnessed yesterday.
Texas Instruments found support at its 50-day line and it appears that it has reached an appropriate buy point at around $130.00. Its relative strength line is already right there at new highs ahead of the price.
Why the Initial Call Trade on Texas Instruments?
“Semiconductor stock Texas Instruments Incorporated (NASDAQ:TXN), headquartered in Dallas, Texas, an original equipment manufacturer of analog, mixed signal and digital signal processing (DSP) integrated circuits, has strong margins, disciplined balance sheet management, ample cash generation and growing demand.
Since 2004, Texas Instruments has managed to increase free cash flow per share by 12% annually. And the road ahead looks even brighter. Bulls have been piling into TXN, with unusually heavy action in the options pits. Meanwhile, numerous Wall Street analysts have upped their targets on the stock, including Jefferies – which raised its target from $137 to an optimistic $170.
Texas Instruments’ stock has risen from about $69 in August 2016 to around $120 in August 2019. The rise was primarily driven by a steady growth in revenues and net income margins, accompanied by a drop in shares outstanding, and a slightly higher P/E multiple……continue reading.”
Therefore, advising members to consider buying this.....
.....Option trade: Buy the TXN OCT 18 130.000 CALL at approximately $2.30.
YOU NEED TO BE IN TO PROFIT!
Moving Forward for Texas Instruments…..
Technology stocks historically haven’t been the best performers during the late stages of the business cycle and throughout recessions. Yet, this time, around, tech stocks have continued to perform very well throughout 2019; as can be seen with Texas Instruments…..
Texas Instruments has a stellar record of increasing earnings, cash flows, and dividends.
Management is extremely committed to returning all free cash flow to shareholders, which testifies of their confidence in the business model.
The company is impeccably run, has great financial strength, a reasonable valuation, and exerts great price momentum.
Texas Instruments is more undervalued than 55% of stocks in the sector. TXN’s trailing twelve months (TTM) PE ratio is slightly above that of the S&P 500 which trades at 22x earnings. Yet, the company’s multiple is below that of the tech sector.
As well, the stock boasts an impressive 4.41% buyback yield. Buying back shares decreases both the dividend payout ratios and the stock’s multiples.
Texas Instruments has better momentum than 90% of stocks, which is excellent.
The extremely low gearing ratio, and high interest coverage suggests that Texas Instruments can withstand any storm. It is in the top 15% of all US stocks for financial strength which will drive long term returns for shareholders.
As well, Texas Instruments is heavily investing in 5G which President Trump has identified as a priority in maintaining America’s edge in information technology, and this will help offset any growth stagnation.
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
What Can You Do?
Texas Instruments Incorporated's price has increased 15.33% these last 3 months, 22.21% these last 6 months, and 18.19% these last 12 months and now currently sits at $130.22.
Based on analysts’ optimism for Texas Instruments, the positive past performance, the company’s growth prospects and exceptional management, along with the other compelling factors already mentioned, it is expected that the share price will likely continue to move higher.
Therefore, if you agree with this scenario consider the following options trade…..
.....Buy the TXN JAN 17 2020 135.000 CALL at approximately $5.00.
If you are not a member and are interested in being part of this profitable action just CLICK HERE.
AS ALWAYS THE DECISION IS YOURS!
OR other memberships.....CLICK HERE......
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!