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Texas Instruments (TXN) Stock Moves -0.82%: What You Should Know

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In the latest trading session, Texas Instruments (TXN - Free Report) closed at $161.29, marking a -0.82% move from the previous day. This change was narrower than the S&P 500's 1.72% loss on the day. Elsewhere, the Dow lost 1.62%, while the tech-heavy Nasdaq added 0.01%.

Heading into today, shares of the chipmaker had lost 8.28% over the past month, outpacing the Computer and Technology sector's loss of 11.99% and the S&P 500's loss of 9.09% in that time.

Texas Instruments will be looking to display strength as it nears its next earnings release. On that day, Texas Instruments is projected to report earnings of $2.37 per share, which would represent year-over-year growth of 14.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.11 billion, up 10.16% from the year-ago period.

TXN's full-year Zacks Consensus Estimates are calling for earnings of $9.35 per share and revenue of $20.08 billion. These results would represent year-over-year changes of +13.2% and +9.44%, respectively.

Investors might also notice recent changes 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 company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Texas Instruments is currently a Zacks Rank #3 (Hold).

Investors should also note Texas Instruments's current valuation metrics, including its Forward P/E ratio of 17.39. This valuation marks a premium compared to its industry's average Forward P/E of 11.21.

Also, we should mention that TXN has a PEG ratio of 1.86. 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 1.82 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 183, putting it in the bottom 28% 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.

To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.


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