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TSMC (TSM) Suffers a Larger Drop Than the General Market: Key Insights

The most recent trading session ended with TSMC (TSM) standing at $173.96, reflecting a -0.81% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily loss of 0.16%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.18%.

Shares of the chip company witnessed a gain of 11.64% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.77% and the S&P 500's gain of 3.15%.

The investment community will be closely monitoring the performance of TSMC in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.34, marking a 17.54% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $19.95 billion, indicating a 27.28% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $6.13 per share and a revenue of $84.52 billion, demonstrating changes of +18.34% and +21.96%, respectively, from the preceding year.

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Any recent changes to analyst estimates for TSMC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% higher. TSMC is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, TSMC is currently trading at a Forward P/E ratio of 28.63. This represents no noticeable deviation compared to its industry's average Forward P/E of 28.63.

One should further note that TSM currently holds a PEG ratio of 1.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Semiconductor - Circuit Foundry industry had an average PEG ratio of 1.2.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 2, which puts it in the top 1% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report

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