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Texas Instruments (TXN) Stock Moves -0.42%: What You Should Know

Texas Instruments (TXN) closed at $90.18 in the latest trading session, marking a -0.42% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.66%. Elsewhere, the Dow lost 0.99%, while the tech-heavy Nasdaq lost 1.63%.

Coming into today, shares of the chipmaker had lost 15.59% in the past month. In that same time, the Computer and Technology sector lost 10.48%, while the S&P 500 lost 8.1%.

Wall Street will be looking for positivity from TXN as it approaches its next earnings report date. This is expected to be January 22, 2019. On that day, TXN is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 13.76%. Meanwhile, our latest consensus estimate is calling for revenue of $3.75 billion, up 0.04% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.57 per share and revenue of $15.82 billion, which would represent changes of +30.14% and +5.76%, 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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 1.28% lower within the past month. TXN is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, TXN is currently trading at a Forward P/E ratio of 16.26. This valuation marks a premium compared to its industry's average Forward P/E of 11.

It is also worth noting that TXN currently has a PEG ratio of 1.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - General was holding an average PEG ratio of 1.71 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 113, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many 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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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