U.S. markets open in 8 hours 11 minutes
  • S&P Futures

    3,753.50
    -36.00 (-0.95%)
     
  • Dow Futures

    30,496.00
    -285.00 (-0.93%)
     
  • Nasdaq Futures

    11,411.25
    -118.25 (-1.03%)
     
  • Russell 2000 Futures

    1,685.80
    -22.20 (-1.30%)
     
  • Crude Oil

    105.53
    -0.23 (-0.22%)
     
  • Gold

    1,802.00
    -5.30 (-0.29%)
     
  • Silver

    19.97
    -0.38 (-1.88%)
     
  • EUR/USD

    1.0464
    -0.0020 (-0.19%)
     
  • 10-Yr Bond

    2.9720
    0.0000 (0.00%)
     
  • Vix

    28.71
    +0.55 (+1.95%)
     
  • GBP/USD

    1.2120
    -0.0055 (-0.45%)
     
  • USD/JPY

    134.8570
    -0.8710 (-0.64%)
     
  • BTC-USD

    19,432.17
    -558.85 (-2.80%)
     
  • CMC Crypto 200

    416.79
    -14.68 (-3.40%)
     
  • FTSE 100

    7,169.28
    -143.04 (-1.96%)
     
  • Nikkei 225

    25,928.05
    -464.99 (-1.76%)
     

TSMC (TSM) Gains But Lags Market: What You Should Know

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

TSMC (TSM) closed at $93.84 in the latest trading session, marking a +0.78% move from the prior day. This move lagged the S&P 500's daily gain of 0.95%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq lost 0.28%.

Heading into today, shares of the chip company had gained 6.66% over the past month, outpacing the Computer and Technology sector's loss of 0.21% and the S&P 500's gain of 0.1% 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 $1.48 per share. This would mark year-over-year growth of 59.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.68 billion, up 40.56% from the year-ago period.

TSM's full-year Zacks Consensus Estimates are calling for earnings of $5.93 per share and revenue of $76.53 billion. These results would represent year-over-year changes of +43.93% and +34.68%, respectively.

It is also important to note the recent changes to analyst estimates for TSMC. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. TSMC is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that TSMC has a Forward P/E ratio of 15.7 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 15.7.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research