TSMC (TSM) closed the most recent trading day at $146.16, moving -0.44% from the previous trading session. This change lagged the S&P 500's daily loss of 0.23%. Meanwhile, the Dow lost 0.91%, and the Nasdaq, a tech-heavy index, added 0.1%.
The chip company's shares have seen a decrease of 17.11% over the last month, not keeping up with the Computer and Technology sector's loss of 16.18% and the S&P 500's loss of 12.13%.
The investment community will be paying close attention to the earnings performance of TSMC in its upcoming release. The company is slated to reveal its earnings on April 17, 2025. The company's upcoming EPS is projected at $2.02, signifying a 46.38% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.2 billion, up 33.55% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.15 per share and a revenue of $113.51 billion, representing changes of +29.97% and +26%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for TSMC. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.48% lower. TSMC is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note TSMC's current valuation metrics, including its Forward P/E ratio of 16.04. Its industry sports an average Forward P/E of 16.04, so one might conclude that TSMC is trading at no noticeable deviation comparatively.
Meanwhile, TSM's PEG ratio is currently 0.5. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - Circuit Foundry industry had an average PEG ratio of 0.5 as trading concluded yesterday.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 35% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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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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