Yahoo Finance TSMC (TSM) Dips More Than Broader Markets: What You Should Know
TSMC (TSM) closed the most recent trading day at $73.01, moving -1.16% from the previous trading session. This move lagged the S&P 500's daily loss of 1.03%. Meanwhile, the Dow lost 1.11%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Prior to today's trading, shares of the chip company had lost 12.83% over the past month. This has was narrower than the Computer and Technology sector's loss of 13.11% and lagged the S&P 500's loss of 10.4% in that time.
Wall Street will be looking for positivity from TSMC as it approaches its next earnings report date. The company is expected to report EPS of $1.67, up 54.63% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.83 billion, up 40.03% from the year-ago period.
TSM's full-year Zacks Consensus Estimates are calling for earnings of $6.21 per share and revenue of $77.77 billion. These results would represent year-over-year changes of +50.73% and +36.87%, respectively.
Any recent changes to analyst estimates for TSMC 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. 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.
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 has moved 1.32% lower. TSMC currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, TSMC is holding a Forward P/E ratio of 11.89. This represents a no noticeable deviation compared to its industry's average Forward P/E of 11.89.
It is also worth noting that TSM currently has a PEG ratio of 0.49. 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. Semiconductor - Circuit Foundry stocks are, on average, holding a PEG ratio of 0.49 based on yesterday's closing prices.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 242, which puts it in the bottom 4% 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.
To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.
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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
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