TSMC (TSM) Beats Stock Market Upswing: What Investors Need to Know
The most recent trading session ended with TSMC (TSM) standing at $136.75, reflecting a +1.39% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.89%. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 1.25%.
The chip company's shares have seen an increase of 7.61% over the last month, surpassing the Computer and Technology sector's gain of 3.77% and the S&P 500's gain of 3.56%.
The investment community will be paying close attention to the earnings performance of TSMC in its upcoming release. It is anticipated that the company will report an EPS of $1.30, marking a 0.76% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $18.38 billion, indicating a 9.96% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $6.19 per share and a revenue of $85.41 billion, demonstrating changes of +19.5% and +23.24%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for TSMC. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% upward. TSMC presently features a Zacks Rank of #2 (Buy).
In terms of valuation, TSMC is currently trading at a Forward P/E ratio of 21.81. This signifies no noticeable deviation in comparison to the average Forward P/E of 21.81 for its industry.
We can also see that TSM currently has a PEG ratio of 1.03. 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 1.03 as of yesterday's close.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 2, finds itself in the top 1% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.
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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
