TSMC (TSM) Dips More Than Broader Markets: What You Should Know
In the latest trading session, TSMC (TSM) closed at $119.45, marking a -1.27% move from the previous day. This change lagged the S&P 500's daily loss of 0.2%.
Coming into today, shares of the chip company had gained 10.19% in the past month. In that same time, the Computer and Technology sector gained 7.19%, while the S&P 500 gained 2.11%.
TSM will be looking to display strength as it nears its next earnings release. On that day, TSM is projected to report earnings of $0.89 per share, which would represent year-over-year growth of 14.1%. Meanwhile, our latest consensus estimate is calling for revenue of $12.96 billion, up 24.83% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.07 per share and revenue of $56.56 billion. These totals would mark changes of +20.06% and +24.29%, respectively, from last year.
Any recent changes to analyst estimates for TSM should also be noted by investors. Recent revisions tend to reflect the latest 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. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. TSM is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, TSM is holding a Forward P/E ratio of 29.73. For comparison, its industry has an average Forward P/E of 29.73, which means TSM is trading at a no noticeable deviation to the group.
Also, we should mention that TSM has a PEG ratio of 1.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - Circuit Foundry was holding an average PEG ratio of 1.87 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 138, which puts it in the bottom 46% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
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