In the latest trading session, Texas Instruments (TXN) closed at $129.97, marking a +1.75% move from the previous day. This move outpaced the S&P 500’s daily gain of 1.09%. Elsewhere, the Dow gained 1.21%, while the tech-heavy Nasdaq added 1.34%.
Heading into today, shares of the chipmaker had lost 1.91% over the past month, lagging the Computer and Technology sector’s loss of 0.65% and the S&P 500’s loss of 1.17% in that time.
Wall Street will be looking for positivity from TXN as it approaches its next earnings report date. This is expected to be October 22, 2019. On that day, TXN is projected to report earnings of $1.41 per share, which would represent a year-over-year decline of 10.76%. Our most recent consensus estimate is calling for quarterly revenue of $3.81 billion, down 10.58% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.33 per share and revenue of $14.69 billion. These totals would mark changes of -4.65% and -6.93%, respectively, from last year.
Any recent changes to analyst estimates for TXN should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. TXN is currently a Zacks Rank #4 (Sell).
In terms of valuation, TXN is currently trading at a Forward P/E ratio of 23.96. For comparison, its industry has an average Forward P/E of 18.85, which means TXN is trading at a premium to the group.
Meanwhile, TXN’s PEG ratio is currently 2.37. 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. TXN’s industry had an average PEG ratio of 1.96 as of yesterday’s close.
The Semiconductor – General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 219, which puts it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.