Texas Instruments (TXN) closed the most recent trading day at $305.37, moving -1.04% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. Elsewhere, the Dow saw an upswing of 1.73%, while the tech-heavy Nasdaq depreciated by 0.09%.
Shares of the chipmaker have appreciated by 6.62% over the course of the past month, underperforming the Computer and Technology sector's gain of 10.03%, and outperforming the S&P 500's gain of 4.59%.
Analysts and investors alike will be keeping a close eye on the performance of Texas Instruments in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.9, signifying a 34.75% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $5.22 billion, reflecting a 17.39% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.66 per share and revenue of $20.76 billion. These totals would mark changes of +40.55% and +17.38%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.79% upward. Texas Instruments is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 40.26. This signifies a discount in comparison to the average Forward P/E of 65.84 for its industry.
We can also see that TXN currently has a PEG ratio of 1.55. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - General industry had an average PEG ratio of 1.03 as trading concluded yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 32, placing it within the top 14% of over 250 industries.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Texas Instruments Incorporated (TXN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).