Yahoo Finance TSMC (TSM) Dips More Than Broader Markets: What You Should Know
TSMC (TSM) closed the most recent trading day at $98.05, moving -0.9% from the previous trading session. This change lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 1.54%.
Heading into today, shares of the chip company had gained 16.44% over the past month, outpacing the Computer and Technology sector's gain of 12.17% and the S&P 500's gain of 4.14% in that time.
TSMC will be looking to display strength as it nears its next earnings release. On that day, TSMC is projected to report earnings of $1.07 per share, which would represent a year-over-year decline of 30.97%. Our most recent consensus estimate is calling for quarterly revenue of $15.52 billion, down 14.53% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.31 per share and revenue of $71.59 billion. These totals would mark changes of -19.18% and -5.65%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for TSMC. 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.
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 0.25% lower. TSMC is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, TSMC currently has a Forward P/E ratio of 18.62. For comparison, its industry has an average Forward P/E of 18.62, which means TSMC is trading at a no noticeable deviation to the group.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 245, which puts it in the bottom 3% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
