TSMC (TSM) Gains As Market Dips: What You Should Know
TSMC (TSM) closed the most recent trading day at $90.81, moving +0.17% from the previous trading session. This change outpaced the S&P 500's 0.16% loss on the day. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 3.64%.
Heading into today, shares of the chip company had gained 3.85% over the past month, lagging the Computer and Technology sector's gain of 6.7% and outpacing the S&P 500's gain of 0.07% in that time.
Investors will be hoping for strength from TSMC as it approaches its next earnings release. In that report, analysts expect TSMC to post earnings of $1.21 per share. This would mark a year-over-year decline of 13.57%. Meanwhile, our latest consensus estimate is calling for revenue of $17.3 billion, down 1.53% from the prior-year quarter.
TSM's full-year Zacks Consensus Estimates are calling for earnings of $5.57 per share and revenue of $78.45 billion. These results would represent year-over-year changes of -15.22% and +3.39%, respectively.
Investors might also notice recent changes to analyst estimates for TSMC. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 has moved 0.6% lower. TSMC is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, TSMC is currently trading at a Forward P/E ratio of 16.29. Its industry sports an average Forward P/E of 16.29, so we one might conclude that TSMC is trading at a no noticeable deviation comparatively.
Meanwhile, TSM's PEG ratio is currently 0.79. 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 0.79 at yesterday's closing price.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 243, which puts it in the bottom 4% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
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 Report
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