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Texas Instruments (TXN) Rises As Market Takes a Dip: Key Facts

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In the latest trading session, Texas Instruments (TXN - Free Report) closed at $301.14, marking a +2.67% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.28%. Elsewhere, the Dow lost 1.09%, while the tech-heavy Nasdaq added 0.2%.

Shares of the chipmaker have appreciated by 1.62% over the course of the past month, outperforming the Computer and Technology sector's loss of 1.22%, and lagging the S&P 500's gain of 1.64%.

The investment community will be paying close attention to the earnings performance of Texas Instruments in its upcoming release. The company is slated to reveal its earnings on July 22, 2026. The company is forecasted to report an EPS of $1.9, showcasing a 34.75% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $5.22 billion, showing a 17.39% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.66 per share and revenue of $20.76 billion, indicating changes of +40.55% and +17.38%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Texas Instruments. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Texas Instruments presently features a Zacks Rank of #2 (Buy).

Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 38.27. For comparison, its industry has an average Forward P/E of 53.82, which means Texas Instruments is trading at a discount to the group.

It's also important to note that TXN currently trades at a PEG ratio of 1.47. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Semiconductor - General stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 19, finds itself in the top 8% echelons 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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