Texas Instruments (TXN) closed at $163.10 in the latest trading session, marking a +0.06% move from the prior day. This move outpaced the S&P 500's daily loss of 0.41%.
Heading into today, shares of the chipmaker had lost 10.83% over the past month, lagging the Computer and Technology sector's loss of 9.08% and the S&P 500's loss of 5.13% 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
It is also important to note the recent changes to analyst estimates for Texas Instruments. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. 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 17.43 right now. This represents a premium compared to its industry's average Forward P/E of 12.12.
Meanwhile, TXN's PEG ratio is currently 1.87. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.86 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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