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In the latest trading session, TSMC (TSM) closed at $122.68, marking a +0.65% move from the previous day. This move outpaced the S&P 500's daily loss of 0.46%.
Prior to today's trading, shares of the chip company had gained 5.09% over the past month. This has outpaced the Computer and Technology sector's gain of 3.42% and the S&P 500's gain of 1.93% in that time.
Investors will be hoping for strength from TSM as it approaches its next earnings release. The company is expected to report EPS of $1.03, up 14.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.89 billion, up 22.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.02 per share and revenue of $56.52 billion, which would represent changes of +18.58% and +24.2%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for TSM. These revisions help to show the ever-changing nature of 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. TSM is currently a Zacks Rank #4 (Sell).
Investors should also note TSM's current valuation metrics, including its Forward P/E ratio of 30.32. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 30.32.
We can also see that TSM currently has a PEG ratio of 1.89. 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 1.89 as of yesterday's close.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 247, putting it in the bottom 3% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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