Texas Instruments (TXN) closed the most recent trading day at $193.45, moving +2.61% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.53% for the day. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1%.
Shares of the chipmaker witnessed a gain of 6.18% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.62%, and the S&P 500's gain of 2.06%.
Market participants will be closely following the financial results of Texas Instruments in its upcoming release. The company plans to announce its earnings on January 27, 2026. On that day, Texas Instruments is projected to report earnings of $1.28 per share, which would represent a year-over-year decline of 1.54%. Alongside, our most recent consensus estimate is anticipating revenue of $4.42 billion, indicating a 10.38% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.46 per share and revenue of $17.69 billion, which would represent changes of +5% and 0%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Texas Instruments. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. 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, 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, there's been a 0.67% rise in the Zacks Consensus EPS estimate. At present, Texas Instruments boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Texas Instruments is currently exchanging hands at a Forward P/E ratio of 31.38. This indicates a discount in contrast to its industry's Forward P/E of 32.26.
Meanwhile, TXN's PEG ratio is currently 3.04. 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. The Semiconductor - General industry had an average PEG ratio of 3.29 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 35, which puts it in the top 15% 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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