In the latest trading session, TSMC (TSM) closed at $92.58, marking a -0.08% move from the previous day. This change was narrower than the S&P 500's 0.15% loss on the day. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 3.33%.
Prior to today's trading, shares of the chip company had gained 3.76% over the past month. This has lagged the Computer and Technology sector's gain of 6.56% and outpaced the S&P 500's gain of 1.21% 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 $1.07 per share, which would represent a year-over-year decline of 30.97%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 $5.33 per share and revenue of $71.59 billion. These totals would mark changes of -18.87% and -5.65%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for TSMC. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate has moved 4.71% lower. TSMC currently has a Zacks Rank of #4 (Sell).
Digging into valuation, TSMC currently has a Forward P/E ratio of 17.39. This represents a no noticeable deviation compared to its industry's average Forward P/E of 17.39.
Also, we should mention that TSM has a PEG ratio of 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TSM's industry had an average PEG ratio of 0.85 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 243, which puts it in the bottom 4% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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