Texas Instruments (TXN - Free Report) closed at $95.66 in the latest trading session, marking a +0.63% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.56%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, lost 0.38%.
Heading into today, shares of the chipmaker had lost 10.21% over the past month, lagging the Computer and Technology sector's loss of 8.65% and the S&P 500's loss of 6.76% 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 January 22, 2019. On that day, TXN is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 13.76%. Meanwhile, our latest consensus estimate is calling for revenue of $3.75 billion, up 0.04% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.56 per share and revenue of $15.82 billion. These totals would mark changes of +29.91% and +5.76%, respectively, from last year.
Any recent changes to analyst estimates for TXN should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.38% lower. TXN is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that TXN has a Forward P/E ratio of 17.1 right now. Its industry sports an average Forward P/E of 11.48, so we one might conclude that TXN is trading at a premium comparatively.
Meanwhile, TXN's PEG ratio is currently 1.8. 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 1.8 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 79, putting it in the top 31% 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.