TSMC (TSM) closed the latest trading day at $212.46, indicating a +2.64% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.55%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.63%.
Shares of the chip company have appreciated by 10.71% over the course of the past month, underperforming the Computer and Technology sector's gain of 11.3% and outperforming the S&P 500's gain of 6.29%.
Analysts and investors alike will be keeping a close eye on the performance of TSMC in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.29, showcasing a 54.73% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $29.66 billion, up 42.47% from the prior-year quarter.
TSM's full-year Zacks Consensus Estimates are calling for earnings of $9.19 per share and revenue of $115.46 billion. These results would represent year-over-year changes of +30.54% and +28.17%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for TSMC. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. TSMC is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, TSMC is currently trading at a Forward P/E ratio of 22.52. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 22.52.
One should further note that TSM currently holds a PEG ratio of 1.08. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Semiconductor - Circuit Foundry stocks are, on average, holding a PEG ratio of 1.08 based on yesterday's closing prices.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 38% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on 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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