Texas Instruments (TXN) closed at $132.86 in the latest trading session, marking a +1.08% move from the prior day. This move lagged the S&P 500's daily gain of 1.2%. Elsewhere, the Dow gained 1.7%, while the tech-heavy Nasdaq added 1.13%.
Investors will be hoping for strength from TXN as it approaches its next earnings release. In that report, analysts expect TXN to post earnings of $0.86 per share. This would mark a year-over-year decline of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $2.93 billion, down 20.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.01 per share and revenue of $12.24 billion. These totals would mark changes of -23.47% and -14.91%, respectively, from last year.
Any recent changes to analyst estimates for TXN should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, 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 has moved 0.66% lower. TXN currently has a Zacks Rank of #3 (Hold).
Digging into valuation, TXN currently has a Forward P/E ratio of 32.79. This represents a discount compared to its industry's average Forward P/E of 35.95.
Also, we should mention that TXN has a PEG ratio of 3.51. 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. TXN's industry had an average PEG ratio of 2.68 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 9% 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.
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