Texas Instruments (TXN) closed the most recent trading day at $162.10, moving -0.64% from the previous trading session. This change was narrower than the S&P 500's 0.94% loss on the day. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 1.53%.
Prior to today's trading, shares of the chipmaker had lost 2.38% over the past month. This has lagged the Computer and Technology sector's gain of 3.69% and the S&P 500's gain of 1.85% in that time.
Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. In that report, analysts expect Texas Instruments to post earnings of $1.82 per share. This would mark 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.34 per share and revenue of $18.03 billion. These totals would mark changes of -21.83% and -9.96%, respectively, from last year.
Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments is currently a Zacks Rank #3 (Hold).
Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 22.22. This represents a premium compared to its industry's average Forward P/E of 18.59.
Also, we should mention that TXN has a PEG ratio of 2.38. 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. The Semiconductor - General was holding an average PEG ratio of 2.7 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 86, putting it in the top 35% 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.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.
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