In the latest trading session, TSMC (TSM) closed at $125.94, marking a -0.05% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.48%. Meanwhile, the Dow lost 1.5%, and the Nasdaq, a tech-heavy index, added 0.56%.
Coming into today, shares of the chip company had gained 0.14% in the past month. In that same time, the Computer and Technology sector lost 2.16%, while the S&P 500 lost 0.53%.
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 $0.91 per share. This would mark year-over-year growth of 21.33%. Our most recent consensus estimate is calling for quarterly revenue of $12.83 billion, up 24.47% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.01 per share and revenue of $55.21 billion, which would represent changes of +18.29% and +21.33%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for TSM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. TSM is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, TSM currently has a Forward P/E ratio of 31.42. For comparison, its industry has an average Forward P/E of 31.42, which means TSM is trading at a no noticeable deviation to the group.
Also, we should mention that TSM has a PEG ratio of 1.23. 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 1.23 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 6, which puts it in the top 3% 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.
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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
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