In the latest close session, Texas Instruments (TXN) was up +2.16% at $199.22. The stock's performance was ahead of the S&P 500's daily gain of 0.94%. At the same time, the Dow added 0.75%, and the tech-heavy Nasdaq gained 1.52%.
Heading into today, shares of the chipmaker had gained 3.45% over the past month, lagging the Computer and Technology sector's gain of 3.9% and outpacing the S&P 500's gain of 1.67%.
The investment community will be closely monitoring the performance of Texas Instruments in its forthcoming earnings report. The company is forecasted to report an EPS of $1.32, showcasing a 8.2% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $4.31 billion, showing a 12.75% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.55 per share and revenue of $17.29 billion. These totals would mark changes of +6.73% and +10.57%, respectively, from last 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. Currently, Texas Instruments is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Texas Instruments is presently being traded at a Forward P/E ratio of 35.15. Its industry sports an average Forward P/E of 35.15, so one might conclude that Texas Instruments is trading at no noticeable deviation comparatively.
We can also see that TXN currently has a PEG ratio of 3.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 2.5.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 36% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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