Here's Why TSMC (TSM) Fell More Than Broader Market
The most recent trading session ended with TSMC (TSM) standing at $152.96, reflecting a -0.89% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.6%. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq lost 1.08%.
The the stock of chip company has risen by 14.38% in the past month, leading the Computer and Technology sector's gain of 7.76% and the S&P 500's gain of 3.15%.
Investors will be eagerly watching for the performance of TSMC in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.33, indicating a 16.67% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.92 billion, up 27.06% from the year-ago period.
TSM's full-year Zacks Consensus Estimates are calling for earnings of $6.13 per share and revenue of $84.56 billion. These results would represent year-over-year changes of +18.34% and +22.03%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for TSMC. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.6% decrease. Right now, TSMC possesses a Zacks Rank of #3 (Hold).
With respect to valuation, TSMC is currently being traded at a Forward P/E ratio of 25.19. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 25.19.
Investors should also note that TSM has a PEG ratio of 1.11 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Semiconductor - Circuit Foundry industry currently had an average PEG ratio of 1.11 as of yesterday's close.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 39% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
