Texas Instruments (TXN - Free Report) closed the most recent trading day at $137.19, moving -1.78% from the previous trading session. This move lagged the S&P 500's daily loss of 1.76%. Elsewhere, the Dow lost 1.45%, while the tech-heavy Nasdaq lost 1.99%.
Prior to today's trading, shares of the chipmaker had gained 0.75% over the past month. This has lagged the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 1.56% in that time.
Investors will be hoping for strength from TXN as it approaches its next earnings release. On that day, TXN is projected to report earnings of $1.25 per share, which would represent a year-over-year decline of 16.11%. Meanwhile, our latest consensus estimate is calling for revenue of $3.41 billion, down 9.5% from the prior-year quarter.
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.
Investors might also notice recent changes to analyst estimates for TXN. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TXN is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, TXN currently has a Forward P/E ratio of 27.65. Its industry sports an average Forward P/E of 27.65, so we one might conclude that TXN is trading at a no noticeable deviation comparatively.
Investors should also note that TXN has a PEG ratio of 2.96 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - General industry currently had an average PEG ratio of 3.04 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 128, putting it in the top 50% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.