Texas Instruments (TXN) closed at $162.67 in the latest trading session, marking a -1.57% move from the prior day. This change lagged the S&P 500's 1.13% loss on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.03%.
Heading into today, shares of the chipmaker had lost 6.48% over the past month, outpacing the Computer and Technology sector's loss of 12.18% and the S&P 500's loss of 7.59% 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 $2.37, up 14.49% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.11 billion, up 10.16% from the year-ago period.
TXN's full-year Zacks Consensus Estimates are calling for earnings of $9.35 per share and revenue of $20.08 billion. These results would represent year-over-year changes of +13.2% and +9.44%, respectively.
Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant within the past month. Texas Instruments is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Texas Instruments has a Forward P/E ratio of 17.67 right now. For comparison, its industry has an average Forward P/E of 11.49, which means Texas Instruments is trading at a premium to the group.
Investors should also note that TXN has a PEG ratio of 1.89 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - General industry currently had an average PEG ratio of 1.88 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 182, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
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