Texas Instruments (TXN) closed at $173.88 in the latest trading session, marking a -1.51% move from the prior day. This move lagged the S&P 500's daily loss of 0.61%. At the same time, the Dow lost 0.41%, and the tech-heavy Nasdaq gained 10.45%.
Prior to today's trading, shares of the chipmaker had gained 7.69% over the past month. This has lagged the Computer and Technology sector's gain of 9.91% and outpaced the S&P 500's gain of 1.05% in that time.
Texas Instruments will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.76, down 28.16% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.36 billion, down 16.43% from the year-ago period.
TXN's full-year Zacks Consensus Estimates are calling for earnings of $7.48 per share and revenue of $17.93 billion. These results would represent year-over-year changes of -20.34% and -10.49%, respectively.
Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. Texas Instruments currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Texas Instruments has a Forward P/E ratio of 23.6 right now. This represents a premium compared to its industry's average Forward P/E of 19.67.
Meanwhile, TXN's PEG ratio is currently 2.53. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - General industry currently had an average PEG ratio of 3.03 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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