TSMC (TSM) Dips More Than Broader Markets: What You Should Know
TSMC (TSM) closed the most recent trading day at $113.63, moving -0.76% from the previous trading session. This change lagged the S&P 500's daily loss of 0.06%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, added 0.76%.
Prior to today's trading, shares of the chip company had lost 14.95% over the past month. This has lagged the Computer and Technology sector's loss of 6.54% and the S&P 500's gain of 0.17% in that time.
Investors will be hoping for strength from TSM as it approaches its next earnings release. On that day, TSM is projected to report earnings of $0.91 per share, which would represent year-over-year growth of 21.33%. Meanwhile, our latest consensus estimate is calling for revenue of $12.83 billion, up 24.47% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.99 per share and revenue of $55.21 billion. These totals would mark changes of +17.7% and +21.33%, 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. 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. 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 has moved 0.5% lower. TSM is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, TSM is currently trading at a Forward P/E ratio of 28.7. This represents a no noticeable deviation compared to its industry's average Forward P/E of 28.7.
Investors should also note that TSM has a PEG ratio of 1.12 right now. 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. Semiconductor - Circuit Foundry stocks are, on average, holding a PEG ratio of 1.12 based on yesterday's closing prices.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 242, which puts it in the bottom 6% 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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