What changed
$TXN — WATCHLIST 📊 | 6 MONTHS THESIS
🎯 Q1 2026 | Rev $4.8B | EPS $1.71 vs $1.37 🟢 | Margin 37.5%
💡 Consensus expects strong earnings growth and a smooth recovery, keeping the P/E elevated at 48x trailing and ~38x forward. The variant view is that the market underestimates how much good news is already priced in, and that multiple compression is likely as the cycle matures, even if earnings continue to improve.
📉 Reward/risk: 3.0:1
🏢 Business Quality: 8/10 - Dominant market position in analog and embedded, high free cash flow generation, disciplined capital allocation, and a durable competitive moat.
📊 Valuation: rich - Trailing P/E 48.1x is at the high end of the historical range for mature analog stocks (typical median ~20-25x).
🔮 Catalyst: Recent Q1 2026 earnings beat with strong Q2 guidance
📊 Our read: WATCHLIST. Full analysis →
https://stockduty.xyz/s/TXN0616