Texas Instruments (TXN) closed at $216.63 in the latest trading session, marking a +1.51% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.07%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.03%.
Shares of the chipmaker witnessed a gain of 7.13% over the previous month, beating the performance of the Computer and Technology sector with its gain of 5.58%, and the S&P 500's gain of 3.94%.
Market participants will be closely following the financial results of Texas Instruments in its upcoming release. The company plans to announce its earnings on July 22, 2025. 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. Meanwhile, our latest consensus estimate is calling for revenue of $4.31 billion, up 12.75% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.55 per share and revenue of $17.29 billion, which would represent changes of +6.73% and +10.57%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Texas Instruments holds a Zacks Rank of #3 (Hold).
Investors should also note Texas Instruments's current valuation metrics, including its Forward P/E ratio of 38.46. This signifies no noticeable deviation in comparison to the average Forward P/E of 38.46 for its industry.
Investors should also note that TXN has a PEG ratio of 3.48 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 2.69.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 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.
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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