Texas Instruments (TXN) ended the recent trading session at $192.18, demonstrating a +0.88% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.55%. Meanwhile, the Dow lost 0.06%, and the Nasdaq, a tech-heavy index, added 1.24%.
The investment community will be closely monitoring the performance of Texas Instruments in its forthcoming earnings report. The company is scheduled to release its earnings on January 23, 2025. The company is forecasted to report an EPS of $1.19, showcasing a 20.13% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $3.86 billion, down 5.38% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.01% lower within the past month. As of now, Texas Instruments holds a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Texas Instruments has a Forward P/E ratio of 33.3 right now. This expresses a premium compared to the average Forward P/E of 32.68 of its industry.
Meanwhile, TXN's PEG ratio is currently 3.7. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 3.86 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 210, placing it within the bottom 17% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
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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.
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