Texas Instruments (TXN) closed at $157.96 in the latest trading session, marking a -1.83% move from the prior day. This change lagged the S&P 500's 1.47% loss on the day. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq lost 1.57%.
Coming into today, shares of the chipmaker had lost 4.62% in the past month. In that same time, the Computer and Technology sector lost 1.46%, while the S&P 500 lost 1.43%.
Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. On that day, Texas Instruments is projected to report earnings of $1.82 per share, which would represent a year-over-year decline of 25.71%. Our most recent consensus estimate is calling for quarterly revenue of $4.57 billion, down 12.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.33 per share and revenue of $18.03 billion, which would represent changes of -21.94% and -9.96%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. 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. 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, 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 has moved 0.19% lower within the past month. Texas Instruments is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 21.95. For comparison, its industry has an average Forward P/E of 18.36, which means Texas Instruments is trading at a premium to the group.
Also, we should mention that TXN has a PEG ratio of 2.35. 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. TXN's industry had an average PEG ratio of 2.64 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 46, putting it in the top 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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