TSMC (TSM) ended the recent trading session at $327.43, demonstrating a +1.61% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.99%, and the tech-heavy Nasdaq gained 0.65%.
The chip company's shares have seen an increase of 6.75% over the last month, surpassing the Computer and Technology sector's loss of 1.47% and the S&P 500's gain of 0.59%.
Analysts and investors alike will be keeping a close eye on the performance of TSMC in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.72, signifying a 21.43% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $32.6 billion, indicating a 21.26% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $10.17 per share and a revenue of $121 billion, demonstrating changes of +44.46% and 0%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for TSMC. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.01% lower. At present, TSMC boasts a Zacks Rank of #3 (Hold).
Looking at valuation, TSMC is presently trading at a Forward P/E ratio of 26.41. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 26.41.
We can additionally observe that TSM currently boasts a PEG ratio of 0.92. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. TSM's industry had an average PEG ratio of 0.92 as of yesterday's close.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 110, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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