TSMC (TSM) ended the recent trading session at $229.17, demonstrating a -2.4% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.79%. Meanwhile, the Dow lost 0.94%, and the Nasdaq, a tech-heavy index, lost 0.92%.
Coming into today, shares of the chip company had gained 14.44% in the past month. In that same time, the Computer and Technology sector gained 7.88%, while the S&P 500 gained 5.22%.
Analysts and investors alike will be keeping a close eye on the performance of TSMC in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.32, reflecting a 56.76% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $30.05 billion, indicating a 44.32% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $9.28 per share and a revenue of $116.93 billion, demonstrating changes of +31.82% and +29.8%, respectively, from the preceding 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.94% higher. As of now, TSMC holds a Zacks Rank of #2 (Buy).
In terms of valuation, TSMC is currently trading at a Forward P/E ratio of 25.31. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 25.31.
Meanwhile, TSM's PEG ratio is currently 1.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - Circuit Foundry industry currently had an average PEG ratio of 1.22 as of yesterday's close.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 2, which puts it in the top 1% of all 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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