In the latest trading session, Texas Instruments (TXN) closed at $178.93, marking a -1.47% move from the previous day. This change lagged the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.08%.
Shares of the chipmaker have depreciated by 1.31% over the course of the past month, underperforming the Computer and Technology sector's gain of 7.19%, and the S&P 500's gain of 4.03%.
The investment community will be closely monitoring the performance of Texas Instruments in its forthcoming earnings report. The company is scheduled to release its earnings on October 21, 2025. The company's earnings per share (EPS) are projected to be $1.48, reflecting a 0.68% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $4.64 billion, up 11.88% from the year-ago period.
TXN's full-year Zacks Consensus Estimates are calling for earnings of $5.6 per share and revenue of $17.67 billion. These results would represent year-over-year changes of +7.69% and +12.96%, respectively.
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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% decrease. Currently, Texas Instruments is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Texas Instruments is currently being traded at a Forward P/E ratio of 32.45. This expresses a discount compared to the average Forward P/E of 50.75 of its industry.
We can also see that TXN currently has a PEG ratio of 2.97. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - General industry had an average PEG ratio of 5.48 as trading concluded yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 31% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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