Advertisement
New Zealand markets closed
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NZD/USD

    0.5975
    -0.0031 (-0.51%)
     
  • NZD/EUR

    0.5530
    -0.0013 (-0.23%)
     
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD

    2,254.80
    +16.40 (+0.73%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • NZD/JPY

    90.4410
    -0.3390 (-0.37%)
     

TSMC (TSM) Stock Moves -1.19%: What You Should Know

TSMC (TSM) closed at $101.98 in the latest trading session, marking a -1.19% move from the prior day. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq lost 2.33%.

Coming into today, shares of the chip company had gained 22.9% in the past month. In that same time, the Computer and Technology sector gained 9.73%, while the S&P 500 gained 1.03%.

Wall Street will be looking for positivity from TSMC as it approaches its next earnings report date. In that report, analysts expect TSMC to post earnings of $1.07 per share. This would mark 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.31 per share and revenue of $71.59 billion, which would represent changes of -19.18% and -5.65%, respectively, from the prior year.

ADVERTISEMENT

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.25% lower. TSMC is currently a Zacks Rank #4 (Sell).

Digging into valuation, TSMC currently has a Forward P/E ratio of 19.42. For comparison, its industry has an average Forward P/E of 19.42, which means TSMC is trading at a no noticeable deviation to the group.

Meanwhile, TSM's PEG ratio is currently 3.61. 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. The Semiconductor - Circuit Foundry was holding an average PEG ratio of 3.61 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 244, which puts it in the bottom 4% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many 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

To read this article on Zacks.com click here.

Zacks Investment Research