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Texas Instruments (TXN) Stock Sinks As Market Gains: What You Should Know

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Texas Instruments (TXN - Free Report) closed at $189.78 in the latest trading session, marking a -0.74% move from the prior day. This move lagged the S&P 500's daily gain of 0.34%.

Heading into today, shares of the chipmaker had gained 2.28% over the past month, lagging the Computer and Technology sector's gain of 5.91% and the S&P 500's gain of 2.71% in that time.

Wall Street will be looking for positivity from TXN as it approaches its next earnings report date. This is expected to be July 21, 2021. In that report, analysts expect TXN to post earnings of $1.81 per share. This would mark year-over-year growth of 22.3%. Meanwhile, our latest consensus estimate is calling for revenue of $4.32 billion, up 33.32% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.40 per share and revenue of $17.49 billion, which would represent changes of +23.95% and +20.94%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TXN. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.11% higher. TXN is currently a Zacks Rank #2 (Buy).

Digging into valuation, TXN currently has a Forward P/E ratio of 25.84. This valuation marks a premium compared to its industry's average Forward P/E of 22.54.

We can also see that TXN currently has a PEG ratio of 2.77. 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 was holding an average PEG ratio of 2.77 at yesterday's closing price.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.

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