In the latest trading session, TSMC (TSM) closed at $82.68, marking a -0.36% move from the previous day. This change lagged the S&P 500's 0.09% loss on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.22%.
Coming into today, shares of the chip company had gained 37.11% in the past month. In that same time, the Computer and Technology sector gained 7.08%, while the S&P 500 gained 5.55%.
Investors will be hoping for strength from TSMC as it approaches its next earnings release. On that day, TSMC is projected to report earnings of $1.76 per share, which would represent year-over-year growth of 53.04%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.29 billion, up 28.96% from the year-ago period.
TSM's full-year Zacks Consensus Estimates are calling for earnings of $6.26 per share and revenue of $72.3 billion. These results would represent year-over-year changes of +51.94% and +27.25%, respectively.
It is also important to note the recent changes to analyst estimates for TSMC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TSMC is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note TSMC's current valuation metrics, including its Forward P/E ratio of 13.26. This represents a no noticeable deviation compared to its industry's average Forward P/E of 13.26.
We can also see that TSM currently has a PEG ratio of 0.59. 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. TSM's industry had an average PEG ratio of 0.59 as of yesterday's close.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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