TSMC (TSM) closed the most recent trading day at $81.40, moving -0.7% from the previous trading session. This move lagged the S&P 500's daily loss of 0.03%. At the same time, the Dow added 0.45%, and the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the chip company had gained 34.49% over the past month, outpacing the Computer and Technology sector's gain of 4.69% and the S&P 500's gain of 6.23% in that time.
Investors will be hoping for strength from TSMC as it approaches its next earnings release. On that day, TSMC is projected to report earnings of $1.76 per share, which would represent year-over-year growth of 53.04%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.29 billion, up 28.96% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.26 per share and revenue of $72.3 billion. These totals would mark changes of +51.94% and +27.25%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for TSMC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. TSMC is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that TSMC has a Forward P/E ratio of 13.09 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 13.09.
We can also see that TSM currently has a PEG ratio of 0.58. 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. TSM's industry had an average PEG ratio of 0.58 as of yesterday's close.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% 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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