Texas Instruments (TXN) closed the most recent trading day at $201.29, moving +0.96% from the previous trading session. This change outpaced the S&P 500’s 0.3% gain on the day.
Prior to today’s trading, shares of the chipmaker had gained 1.77% over the past month. This has lagged the Computer and Technology sector’s gain of 1.79% and the S&P 500’s gain of 4.28% in that time.
Investors will be hoping for strength from TXN as it approaches its next earnings release, which is expected to be October 26, 2021. In that report, analysts expect TXN to post earnings of $2.06 per share. This would mark year-over-year growth of 42.07%. Our most recent consensus estimate is calling for quarterly revenue of $4.69 billion, up 23% from the year-ago period.
TXN’s full-year Zacks Consensus Estimates are calling for earnings of $7.92 per share and revenue of $18.04 billion. These results would represent year-over-year changes of +32.66% and +24.75%, respectively.
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. 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. The Zacks Consensus EPS estimate has moved 0.65% higher within the past month. TXN is currently a Zacks Rank #2 (Buy).
Looking at its valuation, TXN is holding a Forward P/E ratio of 25.19. This represents a premium compared to its industry’s average Forward P/E of 19.9.
Also, we should mention that TXN has a PEG ratio of 2.7. 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. The Semiconductor – General industry currently had an average PEG ratio of 2.72 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 30, which puts it in the top 12% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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