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Texas Instruments (TXN) Stock Moves -1.58%: What You Should Know

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Texas Instruments (TXN - Free Report) closed the most recent trading day at $173.44, moving -1.58% from the previous trading session. This change was narrower than the S&P 500's 1.85% loss on the day. Meanwhile, the Dow lost 1.66%, and the Nasdaq, a tech-heavy index, lost 10.91%.

Coming into today, shares of the chipmaker had lost 0.16% in the past month. In that same time, the Computer and Technology sector lost 1.65%, while the S&P 500 lost 2.85%.

Texas Instruments will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.76, down 25.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.36 billion, down 11.07% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.53 per share and revenue of $18.11 billion. These totals would mark changes of -19.81% and -9.6%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Texas Instruments is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Texas Instruments has a Forward P/E ratio of 23.41 right now. For comparison, its industry has an average Forward P/E of 23.41, which means Texas Instruments is trading at a no noticeable deviation to the group.

Meanwhile, TXN's PEG ratio is currently 2.51. 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. TXN's industry had an average PEG ratio of 2.8 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% 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.

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