Sunday, October 31, 2010

Hodges Still Likes Texas Instruments

Texas Instruments has reported earnings of 0.71 a share,versus an estimate of 0.69;and revenue of 3.74 billion dollars,versus an estimate of 3.69.Eric Marshall of Hodges Capital Management says they are positive on TXN's core business and valuation.It is a solid,long term investment.Don't be caught up in the cyclical gyrations of the semi-conductor industry.
Hodges likes the stock here.It still trades at only 12 times earnings.In general,they think the stock looks very attractive.TXN's outlook sounds pretty positive.Hodges thinks lead times and inventory levels will revert back to normal levels.
Analog is now over 90% of TXN's business,and will be the growth-driver in 2011-12.
Investors over the next couple of years will do very well with TXN.Hodges would be committing new capital to it at this point.
TXN's business outside the U.S. is more and more important for them.They have new opportunities in industrial applications,such as automotive,medical and all types of different industries through their analog chips.
Texas Instruments(TXN)

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