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4-Star Stocks Poised to Pop: Texas Instruments

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 7:03PM

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Market-trouncing returns could be written in this 4-star.

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip giant Texas Instruments (NYSE:TXN) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Texas Instruments' business and see what CAPS investors are saying about the stock right now.

Texas Instruments facts

Headquarters (Founded)

Dallas, Texas (1930)

Market Cap

$19.80 billion

Industry

Semiconductors

TTM Revenue

$13.57 billion

Management

CEO Richard Templeton (since 2004)

CFO Kevin March (since 2003)

Return on Equity (average last three years)

22.7%

Dividend Yield

2.7%

Competitors

Analog Devices (NYSE:ADI),

Linear Technology (NASDAQ:LLTC)

CAPS members bullish on TXN also bullish on

Intel (NASDAQ:INTC),

Cisco Systems (NASDAQ:CSCO)

CAPS members bearish on TXN also bearish on

Advanced Micro Devices (NYSE:AMD),

Motorola (NYSE:MOT)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 228 of the 252 All-Star members who have rated Texas Instruments -- some 90% -- believe the stock will outperform the S&P 500 going forward. These bulls include DemonDoug and euphoria96, both of whom are ranked in the top 1% of our community.

Late last month, DemonDoug stated his bull case in Jeopardy-like fashion:

The answer: One with no debt.
The question: What kind of company is most likely to survive a severe downturn, even a depression, and possible U$ dollar deflation (and therefore beat the S&P 500)?

In an earlier pitch from last month, euphoria96 shares that sentiment with this calculated bull call:

This company has an excellent balance sheet and good management. During economic downturns, a lot of people go back to school to retool themselves with new skillsets. This will help [Texas Instruments] with sales in their calculators and other related products. I expect this stock to be much lower but outperform the general market.

What do you think about Texas Instruments, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Linear Tech is a Motley Fool Stock Advisor pick. Intel is a selection of Inside Value, and the Fool owns shares of Intel. The Fool's disclosure policy always gets a perfect score.

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Stocks Mentioned

Texas Instruments Incorporated Stock Quote
Texas Instruments Incorporated
TXN
$185.38 (1.82%) $3.32
Intel Corporation Stock Quote
Intel Corporation
INTC
$36.11 (1.46%) $0.52
Cisco Systems, Inc. Stock Quote
Cisco Systems, Inc.
CSCO
$46.61 (1.55%) $0.71
Advanced Micro Devices, Inc. Stock Quote
Advanced Micro Devices, Inc.
AMD
$100.83 (2.76%) $2.71
Motorola Solutions, Inc. Stock Quote
Motorola Solutions, Inc.
MSI
$255.97 (1.46%) $3.69
Analog Devices, Inc. Stock Quote
Analog Devices, Inc.
ADI
$179.26 (2.70%) $4.71
Linear Technology Corporation Stock Quote
Linear Technology Corporation
LLTC

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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