TSMC (TSM) ended the recent trading session at $196.14, demonstrating a -0.78% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.56% for the day. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq decreased by 0.51%.
The chip company's shares have seen an increase of 20.18% over the last month, surpassing the Computer and Technology sector's gain of 11.21% and the S&P 500's gain of 7.37%.
The investment community will be closely monitoring the performance of TSMC in its forthcoming earnings report. The company is expected to report EPS of $2.29, up 54.73% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $29.66 billion, reflecting a 42.47% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.19 per share and a revenue of $115.46 billion, signifying shifts of +30.54% and +28.17%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Within the past 30 days, our consensus EPS projection has moved 2.07% higher. TSMC is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, TSMC is holding a Forward P/E ratio of 21.51. This expresses no noticeable deviation compared to the average Forward P/E of 21.51 of its industry.
It is also worth noting that TSM currently has a PEG ratio of 1.03. 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 1.03 as trading concluded yesterday.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.
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.
To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.
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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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