Texas Instruments (TXN - Free Report) closed at $147.64 in the latest trading session, marking a +1.85% move from the prior day. This move outpaced the S&P 500's daily gain of 1.54%. At the same time, the Dow added 1.59%, and the tech-heavy Nasdaq gained 0.98%.
Heading into today, shares of the chipmaker had gained 9.63% over the past month, outpacing the Computer and Technology sector's loss of 0.76% and the S&P 500's gain of 8% in that time.
TXN will be looking to display strength as it nears its next earnings release. In that report, analysts expect TXN to post earnings of $1.25 per share. This would mark a year-over-year decline of 16.11%. Our most recent consensus estimate is calling for quarterly revenue of $3.41 billion, down 9.5% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.05 per share and revenue of $13.26 billion, which would represent changes of -3.63% and -7.8%, respectively, from the prior year.
Any recent changes to analyst estimates for TXN should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 past month, the Zacks Consensus EPS estimate remained stagnant. TXN is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, TXN is currently trading at a Forward P/E ratio of 28.69. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 28.69.
We can also see that TXN currently has a PEG ratio of 3.07. 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 3.23 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.