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Texas Instruments (TXN) Stock Moves -0.94%: What You Should Know

Texas Instruments (TXN) closed the most recent trading day at $154.16, moving -0.94% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.01%. Elsewhere, the Dow lost 1.56%, while the tech-heavy Nasdaq lost 0.12%.

Prior to today's trading, shares of the chipmaker had lost 12.56% over the past month. This has lagged the Computer and Technology sector's loss of 4.35% and the S&P 500's loss of 6.08% in that time.

Investors will be hoping for strength from Texas Instruments as it approaches its next earnings release. On that day, Texas Instruments is projected to report earnings of $2.07 per share, which would represent year-over-year growth of 0.98%. Our most recent consensus estimate is calling for quarterly revenue of $4.53 billion, down 1.09% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.74 per share and revenue of $18.97 billion. These totals would mark changes of +5.81% and +3.42%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Texas Instruments. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Texas Instruments is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 17.8. Its industry sports an average Forward P/E of 10.04, so we one might conclude that Texas Instruments is trading at a premium comparatively.

We can also see that TXN currently has a PEG ratio of 1.91. 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 was holding an average PEG ratio of 1.9 at yesterday's closing price.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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