Texas Instruments (TXN – Free Report) closed at $173.60 in the latest trading session, marking a -1.2% move from the prior day. This change lagged the S&P 500’s daily loss of 0.91%. On the other hand, the Dow registered a loss of 1.5%, and the technology-centric Nasdaq decreased by 1.96%.
The chipmaker’s shares have seen a decrease of 2.38% over the last month, surpassing the Computer and Technology sector’s loss of 10.57% and the S&P 500’s loss of 7.38%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. In that report, analysts expect Texas Instruments to post earnings of $1.06 per share. This would mark a year-over-year decline of 11.67%. Meanwhile, our latest consensus estimate is calling for revenue of $3.91 billion, up 6.74% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.35 per share and revenue of $17.05 billion, which would represent changes of +2.88% and +9%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Texas Instruments. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Texas Instruments is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Texas Instruments is at present trading with a Forward P/E ratio of 32.86. This indicates a premium in contrast to its industry’s Forward P/E of 29.01.
It’s also important to note that TXN currently trades at a PEG ratio of 2.84. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Semiconductor – General industry currently had an average PEG ratio of 1.79 as of yesterday’s close.
The Semiconductor – General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 52, positioning it in the top 21% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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