The most recent trading session ended with Texas Instruments (TXN) standing at $198.24, reflecting a -0.87% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.01%. Meanwhile, the Dow experienced a drop of 0.43%, and the technology-dominated Nasdaq saw an increase of 0.26%.

Heading into today, shares of the chipmaker had gained 10.75% over the past month, outpacing the Computer and Technology sector's loss of 5.51% and the S&P 500's loss of 2.26% in that time.

Market participants will be closely following the financial results of Texas Instruments in its upcoming release. The company is forecasted to report an EPS of $1.06, showcasing a 11.67% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.91 billion, up 6.74% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.35 per share and revenue of $17.05 billion, which would represent changes of +2.88% and +9%, respectively, from the prior year.

Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been a 0.57% fall in the Zacks Consensus EPS estimate. Texas Instruments is currently a Zacks Rank #3 (Hold).

Investors should also note Texas Instruments's current valuation metrics, including its Forward P/E ratio of 37.4. For comparison, its industry has an average Forward P/E of 30.95, which means Texas Instruments is trading at a premium to the group.

It's also important to note that TXN currently trades at a PEG ratio of 3.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Semiconductor - General industry stood at 2.17 at the close of the market yesterday.

The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 52, positioning it in the top 21% of all 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Texas Instruments Incorporated (TXN) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research