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TSMC (TSM) Stock Declines While Market Improves: Some Information for Investors

TSMC (TSM) closed the latest trading day at $172.91, indicating a -0.04% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.23%. Meanwhile, the Dow experienced a drop of 0.17%, and the technology-dominated Nasdaq saw an increase of 0.34%.

Prior to today's trading, shares of the chip company had gained 11.18% over the past month. This has outpaced the Computer and Technology sector's loss of 2.01% and the S&P 500's gain of 3.96% in that time.

The upcoming earnings release of TSMC will be of great interest to investors. In that report, analysts expect TSMC to post earnings of $1.33 per share. This would mark year-over-year growth of 16.67%. At the same time, our most recent consensus estimate is projecting a revenue of $19.92 billion, reflecting a 27.06% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.14 per share and revenue of $84.56 billion, which would represent changes of +18.53% and +22.03%, respectively, from the prior year.


Investors should also note any recent changes to analyst estimates for TSMC. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.42% higher. TSMC presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, TSMC is holding a Forward P/E ratio of 28.15. This denotes no noticeable deviation relative to the industry's average Forward P/E of 28.15.

It's also important to note that TSM currently trades at a PEG ratio of 1.18. 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. The Semiconductor - Circuit Foundry was holding an average PEG ratio of 1.18 at yesterday's closing price.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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