In the latest close session, Texas Instruments (TXN) was up +2.34% at $305.55. The stock's performance was ahead of the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq increased by 0.9%.
Heading into today, shares of the chipmaker had lost 4.71% over the past month, lagging the Computer and Technology sector's loss of 1.5% and the S&P 500's gain of 1.27%.
Market participants will be closely following the financial results of Texas Instruments in its upcoming release. The company plans to announce its earnings on July 22, 2026. The company's upcoming EPS is projected at $1.9, signifying a 34.75% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $5.22 billion, up 17.39% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.66 per share and a revenue of $20.76 billion, indicating changes of +40.55% and +17.38%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Texas Instruments. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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, there's been no change in the Zacks Consensus EPS estimate. As of now, Texas Instruments holds a Zacks Rank of #3 (Hold).
In the context of valuation, Texas Instruments is at present trading with a Forward P/E ratio of 38.96. This indicates a discount in contrast to its industry's Forward P/E of 54.78.
It's also important to note that TXN currently trades at a PEG ratio of 1.5. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 0.97 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 18, placing it within the top 8% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Texas Instruments Incorporated (TXN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).