Texas Instruments (TXN - Free Report) closed the most recent trading day at $126.35, moving -0.58% from the previous trading session. This change lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.05%.
Coming into today, shares of the chipmaker had gained 7.85% in the past month. In that same time, the Computer and Technology sector gained 2.54%, while the S&P 500 gained 2.48%.
TXN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.02, down 19.69% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.22 billion, down 13.28% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.14 per share and revenue of $14.26 billion. These totals would mark changes of -8.05% and -9.68%, respectively, from last year.
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. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 24.74. For comparison, its industry has an average Forward P/E of 24.74, which means TXN is trading at a no noticeable deviation to the group.
It is also worth noting that TXN currently has a PEG ratio of 2.44. 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 2.44 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 40, putting it in the top 16% 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.