Texas Instruments (TXN) ended the recent trading session at $196.08, demonstrating a +1.44% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 1.19% for the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 1.96%.
Shares of the chipmaker have appreciated by 5.82% over the course of the past month, outperforming the Computer and Technology sector's gain of 5.37% and the S&P 500's gain of 3.35%.
Market participants will be closely following the financial results of Texas Instruments in its upcoming release. The company is forecasted to report an EPS of $1.16, showcasing a 37.97% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.8 billion, down 16.15% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.13 per share and a revenue of $15.74 billion, indicating changes of -27.44% and -10.18%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Texas Instruments. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 1.57% lower within the past month. Texas Instruments is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 37.69. Its industry sports an average Forward P/E of 28.51, so one might conclude that Texas Instruments is trading at a premium comparatively.
One should further note that TXN currently holds a PEG ratio of 4.19. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 2.62.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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