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TSMC (TSM) Stock Sinks As Market Gains: What You Should Know

·3-min read

TSMC (TSM) closed at $121.50 in the latest trading session, marking a -1.29% move from the prior day. This change lagged the S&P 500's 0.85% gain on the day.

Heading into today, shares of the chip company had gained 10.78% over the past month, outpacing the Computer and Technology sector's gain of 1.96% and the S&P 500's loss of 0.37% in that time.

Investors will be hoping for strength from TSM as it approaches its next earnings release. In that report, analysts expect TSM to post earnings of $1.03 per share. This would mark year-over-year growth of 14.44%. Meanwhile, our latest consensus estimate is calling for revenue of $14.89 billion, up 22.66% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.02 per share and revenue of $56.52 billion, which would represent changes of +18.58% and +24.2%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TSM. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TSM is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, TSM currently has a Forward P/E ratio of 30.62. This represents a no noticeable deviation compared to its industry's average Forward P/E of 30.62.

Meanwhile, TSM's PEG ratio is currently 1.91. 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 1.91 as of yesterday's close.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 121, putting it in the top 48% 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.

To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.


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