Texas Instruments (TXN) closed at $163.41 in the latest trading session, marking a +0.73% move from the prior day. This change outpaced the S&P 500's 0.71% gain on the day. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 0.95%.
Prior to today's trading, shares of the chipmaker had lost 2.45% over the past month. This has lagged the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 0.17% in that time.
Wall Street will be looking for positivity from TXN as it approaches its next earnings report date. The company is expected to report EPS of $1.32, up 17.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.58 billion, up 6.88% from the year-ago period.
Investors might also notice recent changes to analyst estimates for TXN. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.31% higher within the past month. TXN is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note TXN's current valuation metrics, including its Forward P/E ratio of 27.75. This valuation marks a premium compared to its industry's average Forward P/E of 24.61.
Investors should also note that TXN has a PEG ratio of 2.97 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - General was holding an average PEG ratio of 2.97 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% 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.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.
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