Texas Instruments (TXN - Free Report) closed the most recent trading day at $118.79, moving -1.18% from the previous trading session. This move lagged the S&P 500's daily loss of 0.86%. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq lost 1.13%.
Coming into today, shares of the chipmaker had gained 1.88% in the past month. In that same time, the Computer and Technology sector gained 4.5%, while the S&P 500 gained 3.66%.
Investors will be hoping for strength from TXN as it approaches its next earnings release. On that day, TXN is projected to report earnings of $1.02 per share, which would represent a year-over-year decline of 19.69%. Meanwhile, our latest consensus estimate is calling for revenue of $3.22 billion, down 13.28% from the prior-year quarter.
TXN's full-year Zacks Consensus Estimates are calling for earnings of $5.14 per share and revenue of $14.26 billion. These results would represent year-over-year changes of -8.05% and -9.68%, respectively.
Investors might also notice recent changes to analyst estimates for TXN. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 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 remained stagnant. TXN is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note TXN's current valuation metrics, including its Forward P/E ratio of 23.4. For comparison, its industry has an average Forward P/E of 22.58, which means TXN is trading at a premium to the group.
Meanwhile, TXN's PEG ratio is currently 2.31. 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 2 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 105, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.