Texas Instruments (TXN - Free Report) closed the most recent trading day at $98.59, moving +0.89% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.02%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.21%.
Prior to today's trading, shares of the chipmaker had gained 1.96% over the past month. This has outpaced the Computer and Technology sector's loss of 1.41% and the S&P 500's loss of 1.4% in that time.
TXN will be looking to display strength as it nears its next earnings release, which is expected to be January 23, 2019. The company is expected to report EPS of $1.24, up 13.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.75 billion, up 0.04% from the year-ago period.
Investors should also note any recent changes to analyst estimates for TXN. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 0.29% lower within the past month. TXN currently has a Zacks Rank of #3 (Hold).
Digging into valuation, TXN currently has a Forward P/E ratio of 17.76. This valuation marks a premium compared to its industry's average Forward P/E of 12.35.
Meanwhile, TXN's PEG ratio is currently 1.87. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.87 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 112, putting it in the top 44% 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.