In the latest close session, Texas Instruments (TXN) was up +1.77% at $168.27. The stock outperformed the S&P 500, which registered a daily gain of 0.54%. Meanwhile, the Dow experienced a rise of 0.61%, and the technology-dominated Nasdaq saw an increase of 0.65%.
Coming into today, shares of the chipmaker had gained 3.02% in the past month. In that same time, the Computer and Technology sector lost 1.42%, while the S&P 500 lost 0.8%.
Market participants will be closely following the financial results of Texas Instruments in its upcoming release. The company's upcoming EPS is projected at $1.28, signifying a 1.54% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.42 billion, reflecting a 10.38% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.46 per share and a revenue of $17.69 billion, indicating changes of +5% and +13.07%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications 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 business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.79% lower. At present, Texas Instruments boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Texas Instruments is at present trading with a Forward P/E ratio of 30.28. This valuation marks a discount compared to its industry average Forward P/E of 39.03.
One should further note that TXN currently holds a PEG ratio of 2.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - General industry had an average PEG ratio of 4.02 as trading concluded yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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Texas Instruments Incorporated (TXN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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