Texas Instruments (TXN) Stock Moves -0.26%: What You Should Know
Texas Instruments (TXN) closed the most recent trading day at $154.49, moving -0.26% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.63%. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Prior to today's trading, shares of the chipmaker had gained 11.82% over the past month. This has outpaced the Computer and Technology sector's gain of 8.45% and the S&P 500's gain of 5.91% in that time.
Wall Street will be looking for positivity from TXN as it approaches its next earnings report date. This is expected to be October 20, 2020. On that day, TXN is projected to report earnings of $1.25 per share, which would represent a year-over-year decline of 16.11%. Our most recent consensus estimate is calling for quarterly revenue of $3.41 billion, down 9.5% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.05 per share and revenue of $13.26 billion, which would represent changes of -3.63% and -7.8%, respectively, from the prior year.
Any recent changes to analyst estimates for TXN should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. TXN is currently a Zacks Rank #4 (Sell).
Investors should also note TXN's current valuation metrics, including its Forward P/E ratio of 30.66. This represents a no noticeable deviation compared to its industry's average Forward P/E of 30.66.
It is also worth noting that TXN currently has a PEG ratio of 3.28. 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 3.2 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 243, which puts it in the bottom 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.