In the latest trading session, TSMC (TSM) closed at $376.81, marking a -2.82% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.54%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, lost 1.18%.
The chip company's stock has climbed by 13.27% in the past month, exceeding the Computer and Technology sector's loss of 0.82% and the S&P 500's gain of 0.58%.
The investment community will be paying close attention to the earnings performance of TSMC in its upcoming release. It is anticipated that the company will report an EPS of $3.26, marking a 53.77% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $35.29 billion, indicating a 38.27% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.14 per share and revenue of $158.17 billion, indicating changes of +32.77% and +29.2%, respectively, compared to the previous year.
Any recent changes to analyst estimates for TSMC should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.21% rise in the Zacks Consensus EPS estimate. TSMC currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, TSMC currently has a Forward P/E ratio of 27.43. This denotes no noticeable deviation relative to the industry average Forward P/E of 27.43.
It is also worth noting that TSM currently has a PEG ratio of 1.08. 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. The Semiconductor - Circuit Foundry was holding an average PEG ratio of 1.08 at yesterday's closing price.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 1, placing it within the top 1% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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