Texas Instruments (TXN) Gains But Lags Market: What You Should Know

Texas Instruments (TXN) closed the most recent trading day at $165.82, moving +1.67% from the previous trading session. This change lagged the S&P 500's 1.83% gain on the day. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.09%.

Prior to today's trading, shares of the chipmaker had lost 8.22% over the past month. This has was narrower than the Computer and Technology sector's loss of 9.85% and lagged the S&P 500's loss of 5.51% in that time.

Wall Street will be looking for positivity from Texas Instruments as it approaches its next earnings report date. On that day, Texas Instruments is projected to report earnings of $2.37 per share, which would represent year-over-year growth of 14.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.11 billion, up 10.16% from the year-ago period.

TXN's full-year Zacks Consensus Estimates are calling for earnings of $9.35 per share and revenue of $20.08 billion. These results would represent year-over-year changes of +13.2% and +9.44%, respectively.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Texas Instruments is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, Texas Instruments is holding a Forward P/E ratio of 17.44. This represents a premium compared to its industry's average Forward P/E of 11.87.

Investors should also note that TXN has a PEG ratio of 1.87 right now. 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. The Semiconductor - General industry currently had an average PEG ratio of 1.83 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 174, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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