Texas Instruments (TXN) closed at $191.76 in the latest trading session, marking a -0.32% move from the prior day. This change was narrower than the S&P 500's 1.18% loss on the day. At the same time, the Dow lost 1.34%, and the tech-heavy Nasdaq lost 0.92%.
Coming into today, shares of the chipmaker had gained 1.6% in the past month. In that same time, the Computer and Technology sector gained 0.24%, while the S&P 500 lost 0.73%.
Investors will be hoping for strength from Texas Instruments as it approaches its next earnings release. 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.
Investors should also note any recent changes to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 past month, the Zacks Consensus EPS estimate remained stagnant. Texas Instruments is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Texas Instruments is holding a Forward P/E ratio of 24.23. This represents a premium compared to its industry's average Forward P/E of 22.76.
Investors should also note that TXN has a PEG ratio of 2.6 right now. 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 industry currently had an average PEG ratio of 3.05 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 27, which puts it in the top 11% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research