In the latest market close, Texas Instruments (TXN) reached $192.44, with a +1.21% movement compared to the previous day. This change outpaced the S&P 500's 1.1% gain on the day. Elsewhere, the Dow gained 0.91%, while the tech-heavy Nasdaq added 1.35%.
Coming into today, shares of the chipmaker had lost 6.3% in the past month. In that same time, the Computer and Technology sector gained 5.09%, while the S&P 500 gained 0.22%.
The investment community will be closely monitoring the performance of Texas Instruments in its forthcoming earnings report. The company's upcoming EPS is projected at $1.19, signifying a 20.13% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $3.86 billion, showing a 5.38% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.08 per share and revenue of $15.5 billion, which would represent changes of -28.15% and -11.52%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Texas Instruments is presently being traded at a Forward P/E ratio of 37.42. This expresses a premium compared to the average Forward P/E of 31.38 of its industry.
It's also important to note that TXN currently trades at a PEG ratio of 4.16. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 3.07.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
