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Texas Instruments (TXN) Stock Moves -0.04%: What You Should Know

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Texas Instruments (TXN - Free Report) closed the most recent trading day at $187.65, moving -0.04% from the previous trading session. This change traded in line with S&P 500.

Heading into today, shares of the chipmaker had gained 3.31% over the past month, lagging the Computer and Technology sector's gain of 6.01% and outpacing the S&P 500's gain of 1.35% 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 $1.81 per share. This would mark year-over-year growth of 22.3%. Our most recent consensus estimate is calling for quarterly revenue of $4.32 billion, up 33.32% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.39 per share and revenue of $17.4 billion. These totals would mark changes of +23.79% and +20.3%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for TXN. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. Within the past 30 days, our consensus EPS projection has moved 0.44% higher. TXN is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that TXN has a Forward P/E ratio of 25.4 right now. Its industry sports an average Forward P/E of 23.11, so we one might conclude that TXN is trading at a premium comparatively.

We can also see that TXN currently has a PEG ratio of 2.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - General industry currently had an average PEG ratio of 2.56 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 90, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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