PREVIEW: Texas Instruments rallies ahead of earnings

Texas Instruments TXN.O shares gain 5.3% ahead of qtrly results after the bell, as investors focus on inventory challenges in automotive and industrial markets

On January 23, TXN gave a first-qtr profit forecast below analysts' estimates as the analog chipmaker grapples with an inventory buildup in its key markets

Analysts expect qtrly rev up 6.8% to $3.91 bln, with adjusted EPS seen at $1.07 vs $1.20 yr-ago, per LSEG

TXN stock recently at 26 times expected earnings, suggesting it may be fairly valued compared to its avg forward PE of 25 over past five years, per LSEG data

The co's stock has slipped about 18% year to date, compared to a 13% fall in Nasdaq .IXIC, indicating underperformance relative to the index

TXN stock is about 30% below its 52-week intraday high of $220.38 reached on Nov. 08, 2024, reflecting significant decline from peak levels

In past 30 days, one out of 33 analysts raised EPS estimates for qtr, while one revised downwards, showing mixed sentiment among analysts