In the latest close session, Texas Instruments (TXN) was down 1.18% at $216.29. This move lagged the S&P 500's daily gain of 0.8%. Meanwhile, the Dow experienced a drop of 0.15%, and the technology-dominated Nasdaq saw an increase of 1.6%.
Prior to today's trading, shares of the chipmaker had gained 12.56% outpaced the Computer and Technology sector's gain of 7.62% and the S&P 500's gain of 5.15%.
Analysts and investors alike will be keeping a close eye on the performance of Texas Instruments in its upcoming earnings disclosure. The company's earnings report is set to go public on April 22, 2026. The company is forecasted to report an EPS of $1.37, showcasing a 7.03% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $4.52 billion, reflecting a 11.01% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.35 per share and a revenue of $19.37 billion, indicating changes of +16.51% and +9.57%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Texas Instruments is currently sporting a Zacks Rank of #2 (Buy).
Looking at valuation, Texas Instruments is presently trading at a Forward P/E ratio of 34.47. This denotes a discount relative to the industry average Forward P/E of 36.76.
Also, we should mention that TXN has a PEG ratio of 1.99. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 1.99.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 23, this industry ranks in the top 10% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Texas Instruments Incorporated (TXN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).