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Texas Instruments (TXN) closed at $184.24 in the latest trading session, marking a -1.11% move from the prior day. This change was narrower than the S&P 500's 1.14% loss on the day. Elsewhere, the Dow lost 1.23%, while the tech-heavy Nasdaq lost 0.36%.
Prior to today's trading, shares of the chipmaker had lost 4.54% over the past month. This has lagged the Computer and Technology sector's loss of 4.36% and the S&P 500's loss of 1.37% in that time.
Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. The company is expected to report EPS of $1.95, up 8.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.44 billion, up 8.87% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.94 per share and revenue of $17.95 billion, which would represent changes of +33% and +24.09%, respectively, from the prior year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Texas Instruments's current valuation metrics, including its Forward P/E ratio of 23.46. This valuation marks a premium compared to its industry's average Forward P/E of 20.64.
Meanwhile, TXN's PEG ratio is currently 2.51. 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. TXN's industry had an average PEG ratio of 2.93 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 75, which puts it in the top 30% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
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