In the latest trading session, Texas Instruments (TXN) closed at $163.78, marking a -0.37% move from the previous day. This change was narrower than the S&P 500’s 0.41% loss on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 6.67%.
Coming into today, shares of the chipmaker had lost 4.98% in the past month. In that same time, the Computer and Technology sector lost 6.38%, while the S&P 500 lost 4.4%.
Investors will be hoping for strength from Texas Instruments as it approaches its next earnings release. The company is expected to report EPS of $1.97, down 13.22% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.61 billion, down 4.52% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.25 per share and revenue of $19.97 billion, which would represent changes of +11.99% and +8.84%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 has moved 0.27% lower. Texas Instruments is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Texas Instruments has a Forward P/E ratio of 17.77 right now. Its industry sports an average Forward P/E of 13.35, so we one might conclude that Texas Instruments is trading at a premium comparatively.
Meanwhile, TXN’s PEG ratio is currently 1.9. 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. TXN’s industry had an average PEG ratio of 1.85 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 69, putting it in the top 28% 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.
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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