Texas Instruments (TXN) closed the latest trading day at $151.82, indicating a -1.58% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 1.34%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, lost 1.62%.
The chipmaker's shares have seen a decrease of 5.44% over the last month, not keeping up with the Computer and Technology sector's loss of 0.34% and the S&P 500's loss of 1.57%.
Market participants will be closely following the financial results of Texas Instruments in its upcoming release. The company plans to announce its earnings on October 24, 2023. It is anticipated that the company will report an EPS of $1.81, marking a 26.12% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.57 billion, indicating a 12.86% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.31 per share and revenue of $18.02 billion, which would represent changes of -22.15% and -10.03%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Texas Instruments. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.45% decrease. Texas Instruments is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, Texas Instruments is currently exchanging hands at a Forward P/E ratio of 21.1. This expresses a premium compared to the average Forward P/E of 19.42 of its industry.
We can also see that TXN currently has a PEG ratio of 2.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - General industry currently had an average PEG ratio of 2.65 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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