Texas Instruments (TXN) closed the most recent trading day at $191.58, moving +1.3% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.06%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq lost 0.06%.
Shares of the chipmaker have appreciated by 7.34% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.88%, and the S&P 500's gain of 1.99%.
The investment community will be paying close attention to the earnings performance of Texas Instruments in its upcoming release. The company is slated to reveal its earnings on January 27, 2026. The company's earnings per share (EPS) are projected to be $1.28, reflecting a 1.54% decrease from the same quarter last year. 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.
TXN's full-year Zacks Consensus Estimates are calling for earnings of $5.46 per share and revenue of $17.69 billion. These results would represent year-over-year changes of +5% and 0%, respectively.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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 moved 0.67% higher. Right now, Texas Instruments possesses a Zacks Rank of #2 (Buy).
Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 31.48. Its industry sports an average Forward P/E of 32.25, so one might conclude that Texas Instruments is trading at a discount comparatively.
Also, we should mention that TXN has a PEG ratio of 3.05. 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. TXN's industry had an average PEG ratio of 3.27 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 34, positioning it in the top 14% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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