TSMC (TSM) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, TSMC (TSM) closed at $106.73, marking a -1.1% move from the previous day. This move lagged the S&P 500's daily gain of 0.51%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.1%.
Prior to today's trading, shares of the chip company had lost 3.54% over the past month. This has lagged the Computer and Technology sector's gain of 4.34% and the S&P 500's gain of 5.51% in that time.
Wall Street will be looking for positivity from TSMC as it approaches its next earnings report date. In that report, analysts expect TSMC to post earnings of $1.27 per share. This would mark year-over-year growth of 32.29%. Our most recent consensus estimate is calling for quarterly revenue of $16.97 billion, up 31.38% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.43 per share and revenue of $73.05 billion. These totals would mark changes of +31.8% and +28.55%, respectively, from last year.
Any recent changes to analyst estimates for TSMC should also be noted by investors. 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.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% lower. TSMC currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that TSMC has a Forward P/E ratio of 19.86 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 19.86.
We can also see that TSM currently has a PEG ratio of 0.92. 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. TSM's industry had an average PEG ratio of 0.92 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 246, putting it in the bottom 4% 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.
To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.
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