Is Texas Insturment a truenaround?
Texas Instruments (TXN) fell on hard times in this recession but looks like it is poised for a full recovery. TXN is a global semiconductor company and one of the world's leading designers and suppliers of digital signal processors and analog integrated circuits, the engines driving the digitization of electronics. These two types of semiconductor products work together in digital electronic devices such as digital cellular phones. Other semiconductor products include standard logic, application- specific integrated circuits, reduced instruction-set computing microprocessors, microcontrollers and digital imaging devices.
The stock's price has strong and consistent upward price momentum with 10 new highs in the last 20 sessions and 5 new highs in the last 5 sessions for an 8.58% price increase last month. The stock has a Barchart 100% overall buy signal and the Relative Strength Index is 69.84% and rising. The stock recently traded at 29.32 well above its 50 day moving average of 26.47.
Wall Street has predicted this turn around with 19 buy and 16 hold reports published for their clients. They predict a 33.50% increase in sales this year and 1.00% next year. The real story in in their earnings estimates of an increase of 116.50% this year and an annual 5 year compounded EPS growth rate of 10.00%.
The has been a lot of positive press lately with Wall Street columnists writing favorable articles 32 to 2. The general investing public over on Motley Fool has taken notice and the CAPS members vote 1,482 to 111 that the stock will beat the market. The All Stars agree with a vote of 444 to 19.
This stock looks like a turn around in the making and it's not too late to get on board.
Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.
Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.