TSMC (TSM) closed at $370.54 in the latest trading session, marking a +2.82% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.69% for the day. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq appreciated by 0.9%.
Heading into today, shares of the chip company had gained 10.09% over the past month, outpacing the Computer and Technology sector's loss of 3.66% and the S&P 500's loss of 1%.
The investment community will be paying close attention to the earnings performance of TSMC in its upcoming release. The company's upcoming EPS is projected at $3.26, signifying a 53.77% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.29 billion, up 38.27% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.14 per share and a revenue of $158.17 billion, signifying shifts of +32.77% and +29.2%, respectively, from the last 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.21% higher. Right now, TSMC possesses a Zacks Rank of #1 (Strong Buy).
Digging into valuation, TSMC currently has a Forward P/E ratio of 25.5. Its industry sports an average Forward P/E of 25.5, so one might conclude that TSMC is trading at no noticeable deviation comparatively.
Meanwhile, TSM's PEG ratio is currently 1.01. 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 1.01.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 1, this industry ranks in the top 1% of all industries, numbering over 250.
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.
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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