Texas Instruments (TXN) closed at $90.09 in the latest trading session, marking a -0.49% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.58%. At the same time, the Dow lost 1.99%, and the tech-heavy Nasdaq lost 1.63%.
Coming into today, shares of the chipmaker had lost 5.83% in the past month. In that same time, the Computer and Technology sector lost 2.81%, while the S&P 500 lost 6.62%.
Investors will be hoping for strength from TXN as it approaches its next earnings release, which is expected to be January 22, 2019. In that report, analysts expect TXN to post earnings of $1.24 per share. This would mark year-over-year growth of 13.76%. Our most recent consensus estimate is calling for quarterly revenue of $3.75 billion, up 0.04% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.57 per share and revenue of $15.82 billion. These totals would mark changes of +30.14% and +5.76%, respectively, from last year.
Any recent changes to analyst estimates for TXN should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that TXN has a Forward P/E ratio of 16.26 right now. This represents a premium compared to its industry's average Forward P/E of 12.06.
Also, we should mention that TXN has a PEG ratio of 1.71. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.71 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.