Texas Instruments (TXN) Stock Moves -1.66%: What You Should Know
Texas Instruments (TXN) closed at $163.30 in the latest trading session, marking a -1.66% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.71%. Meanwhile, the Dow lost 1.7%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Prior to today's trading, shares of the chipmaker had lost 3.74% over the past month. This has was narrower than the Computer and Technology sector's loss of 12.12% and the S&P 500's loss of 8.68% in that time.
Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. On that day, Texas Instruments is projected to report earnings of $2.37 per share, which would represent year-over-year growth of 14.49%. Meanwhile, our latest consensus estimate is calling for revenue of $5.11 billion, up 10.16% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.35 per share and revenue of $20.08 billion. These totals would mark changes of +13.2% and +9.44%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 #3 (Hold) right now.
In terms of valuation, Texas Instruments is currently trading at a Forward P/E ratio of 17.76. For comparison, its industry has an average Forward P/E of 11.29, which means Texas Instruments is trading at a premium to the group.
It is also worth noting that TXN currently has a PEG ratio of 1.9. 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. The Semiconductor - General was holding an average PEG ratio of 1.87 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 179, putting it in the bottom 29% 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.
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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