TSMC (TSM) Dips More Than Broader Markets: What You Should Know

In the latest trading session, TSMC (TSM) closed at $83.65, marking a -0.82% move from the previous day. This move lagged the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.02%.

Prior to today's trading, shares of the chip company had lost 11.5% over the past month. This has lagged the Computer and Technology sector's loss of 7.26% and the S&P 500's loss of 7.99% in that time.

TSMC will be looking to display strength as it nears its next earnings release. In that report, analysts expect TSMC to post earnings of $1.48 per share. This would mark year-over-year growth of 59.14%. Meanwhile, our latest consensus estimate is calling for revenue of $18.68 billion, up 40.56% from the prior-year quarter.

TSM's full-year Zacks Consensus Estimates are calling for earnings of $5.93 per share and revenue of $76.53 billion. These results would represent year-over-year changes of +43.93% and +34.68%, respectively.

Investors should also note any recent changes to analyst estimates for TSMC. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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. TSMC is currently a Zacks Rank #3 (Hold).

In terms of valuation, TSMC is currently trading at a Forward P/E ratio of 14.22. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 14.22.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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