Texas Instruments (TXN - Free Report) closed at $96.13 in the latest trading session, marking a -0.73% move from the prior day. This change lagged the S&P 500's 0.3% gain on the day. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.92%.
Heading into today, shares of the chipmaker had lost 3.4% over the past month, outpacing the Computer and Technology sector's loss of 7.28% and the S&P 500's loss of 4.37% 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, the Zacks Consensus Estimate for revenue is projecting net sales of $3.75 billion, up 0.04% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.57 per share and revenue of $15.82 billion. These totals would mark changes of +30.14% and +5.76%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for TXN. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.46% lower. TXN is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note TXN's current valuation metrics, including its Forward P/E ratio of 17.39. Its industry sports an average Forward P/E of 12.26, so we one might conclude that TXN is trading at a premium comparatively.
It is also worth noting that TXN currently has a PEG ratio of 1.83. 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. The Semiconductor - General industry currently had an average PEG ratio of 1.83 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 204, which puts it in the bottom 21% 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.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.