TSMC (TSM) closed at $276.66 in the latest trading session, marking a -1.44% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.5%. Elsewhere, the Dow saw a downswing of 0.38%, while the tech-heavy Nasdaq depreciated by 0.5%.
Shares of the chip company have appreciated by 17.31% over the course of the past month, outperforming the Computer and Technology sector's gain of 8.21%, and the S&P 500's gain of 2.74%.
The upcoming earnings release of TSMC will be of great interest to investors. The company is predicted to post an EPS of $2.56, indicating a 31.96% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $32.31 billion, indicating a 37.48% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.83 per share and a revenue of $122.4 billion, representing changes of +39.63% and +35.88%, respectively, from the prior year.
Any recent changes to analyst estimates for TSMC should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TSMC is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note TSMC's current valuation metrics, including its Forward P/E ratio of 28.57. Its industry sports an average Forward P/E of 28.57, so one might conclude that TSMC is trading at no noticeable deviation comparatively.
One should further note that TSM currently holds a PEG ratio of 1.33. 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 1.33.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 235, positioning it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
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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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