Texas Instruments (TXN) ended the recent trading session at $177.99, demonstrating a -0.95% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.38%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.87%.
The chipmaker's shares have seen a decrease of 7.56% over the last month, surpassing the Computer and Technology sector's loss of 8.94% and falling behind the S&P 500's loss of 5.59%.
The investment community will be paying close attention to the earnings performance of Texas Instruments in its upcoming release. On that day, Texas Instruments is projected to report earnings of $1.06 per share, which would represent a year-over-year decline of 11.67%. In the meantime, our current consensus estimate forecasts the revenue to be $3.91 billion, indicating a 6.74% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.35 per share and revenue of $17.05 billion, indicating changes of +2.88% and +9%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Texas Instruments is currently a Zacks Rank #4 (Sell).
With respect to valuation, Texas Instruments is currently being traded at a Forward P/E ratio of 33.6. This represents a premium compared to its industry's average Forward P/E of 25.91.
It is also worth noting that TXN currently has a PEG ratio of 2.91. 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. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 1.88.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Texas Instruments Incorporated (TXN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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