Texas Instruments (NASDAQ:TXN) has served as one of the few long-term bellwethers of the tech industry. It delivered shareholder returns over decades and has continued to do so in the last few years. However, revenue took a hit in late 2019 as China trade issues and economic challenges in specific sectors pressured Texas Instruments stock. Just when shares recovered, coronavirus-related fears caused them to fall sharply with the broad market. This situation forces investors to make a choice. They must decide if this depressed pricing presents an opportunity to buy into a long-term winner or whether these are only the early innings of more pain to come.
While the case to stay in Texas Instruments stock remains strong, it does not necessarily support buying the stock now. Shares trade at 21 times forward earnings estimates, in line with the broad market average. However, analysts estimate both revenue and earnings will decline in 2020. With worldwide economic upheaval prompted by the coronavirus, results could easily come in even worse than what management and analysts expect. The market will eventually move past any coronavirus or trade-related fears. And in the company's current position, its generous dividend remains a source of stability for shareholders. Nonetheless, conditions are too uncertain at this time, and investors wanting to start a position in Texas Instruments stock are better off on the sidelines for now.
Source: Motley Fool
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