In the latest market close, Texas Instruments (TXN) reached $184.15, with a +0.5% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.56%. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq decreased by 0.51%.
Heading into today, shares of the chipmaker had gained 13.98% over the past month, outpacing the Computer and Technology sector's gain of 11.21% and the S&P 500's gain of 7.37% in that time.
The investment community will be closely monitoring the performance of Texas Instruments in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.32, reflecting an 8.2% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $4.31 billion, indicating a 12.75% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.55 per share and revenue of $17.29 billion, indicating changes of +6.73% and +10.57%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Texas Instruments is currently a Zacks Rank #3 (Hold).
Looking at valuation, Texas Instruments is presently trading at a Forward P/E ratio of 33.03. This represents a premium compared to its industry's average Forward P/E of 32.71.
We can also see that TXN currently has a PEG ratio of 2.98. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 2.18.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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