TSMC (TSM) closed the most recent trading day at $231.00, moving -3.05% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.64%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 1.15%.
Coming into today, shares of the chip company had lost 1.39% in the past month. In that same time, the Computer and Technology sector gained 2.91%, while the S&P 500 gained 1.91%.
The upcoming earnings release of TSMC will be of great interest to investors. On that day, TSMC is projected to report earnings of $2.56 per share, which would represent year-over-year growth of 31.96%. Meanwhile, our latest consensus estimate is calling for revenue of $32.31 billion, up 37.48% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.83 per share and a revenue of $122.4 billion, indicating changes of +39.63% and +35.88%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for TSMC. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.43% decrease. TSMC presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, TSMC is currently exchanging hands at a Forward P/E ratio of 24.25. This denotes no noticeable deviation relative to the industry average Forward P/E of 24.25.
It is also worth noting that TSM currently has a PEG ratio of 1.13. 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. By the end of yesterday's trading, the Semiconductor - Circuit Foundry industry had an average PEG ratio of 1.13.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 99, this industry ranks in the top 41% of all industries, numbering over 250.
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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Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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