Texas Instruments (TXN) Stock Moves -0.98%: What You Should Know
In the latest market close, Texas Instruments (TXN) reached $170.76, with a -0.98% movement compared to the previous day. This move was narrower than the S&P 500's daily loss of 1.02%. Meanwhile, the Dow experienced a drop of 1.04%, and the technology-dominated Nasdaq saw a decrease of 1.65%.
The the stock of chipmaker has risen by 8.52% in the past month, leading the Computer and Technology sector's gain of 3.72% and the S&P 500's gain of 3.64%.
The investment community will be closely monitoring the performance of Texas Instruments in its forthcoming earnings report. The company is forecasted to report an EPS of $1.06, showcasing a 42.7% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.61 billion, indicating a 17.65% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.17 per share and a revenue of $15.91 billion, representing changes of -26.87% and -9.19%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.96% decrease. Texas Instruments currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Texas Instruments is presently being traded at a Forward P/E ratio of 33.33. This signifies a premium in comparison to the average Forward P/E of 30.43 for its industry.
Investors should also note that TXN has a PEG ratio of 3.7 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. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 2.68.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 37% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
