Texas Instruments (TXN) closed at $188.47 in the latest trading session, marking a -0.17% move from the prior day. This change was narrower than the S&P 500’s daily loss of 0.46%.
Prior to today’s trading, shares of the chipmaker had lost 0.37% over the past month. This has lagged the Computer and Technology sector’s gain of 3.42% and the S&P 500’s gain of 1.93% in that time.
Wall Street will be looking for positivity from TXN as it approaches its next earnings report date. In that report, analysts expect TXN to post earnings of $2.04 per share. This would mark year-over-year growth of 40.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.65 billion, up 21.73% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.86 per share and revenue of $17.94 billion, which would represent changes of +31.66% and +24.05%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for TXN. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 has moved 0.14% higher. TXN is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, TXN is holding a Forward P/E ratio of 24.02. This valuation marks a premium compared to its industry’s average Forward P/E of 22.67.
We can also see that TXN currently has a PEG ratio of 2.57. 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 2.57 based on yesterday’s closing prices.
The Semiconductor – General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Texas Instruments Incorporated (TXN): Free Stock Analysis Report
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