In the latest close session, Texas Instruments (TXN) was down 1.73% at $174.49. The stock's change was less than the S&P 500's daily loss of 1.16%. On the other hand, the Dow registered a loss of 0.47%, and the technology-centric Nasdaq decreased by 1.81%.
The chipmaker's shares have seen an increase of 12.86% over the last month, surpassing the Computer and Technology sector's gain of 1% and the S&P 500's gain of 1.03%.
The upcoming earnings release of Texas Instruments will be of great interest to investors. In that report, analysts expect Texas Instruments to post earnings of $1.28 per share. This would mark a year-over-year decline of 1.54%. In the meantime, our current consensus estimate forecasts the revenue to be $4.42 billion, indicating a 10.38% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.46 per share and a revenue of $17.69 billion, representing changes of +5% and +13.07%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Texas Instruments is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 32.51. This signifies a discount in comparison to the average Forward P/E of 35.41 for its industry.
Meanwhile, TXN's PEG ratio is currently 3.15. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 4.5.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 15, this industry ranks in the top 7% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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