We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TSMC (TSM) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
TSMC (TSM - Free Report) closed the most recent trading day at $82.17, moving +0.76% from the previous trading session. This change lagged the S&P 500's 1.54% gain on the day. Meanwhile, the Dow gained 1.59%, and the Nasdaq, a tech-heavy index, added 0.98%.
Coming into today, shares of the chip company had gained 1.7% in the past month. In that same time, the Computer and Technology sector lost 0.76%, while the S&P 500 gained 8%.
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 $0.81 per share, which would represent year-over-year growth of 30.65%. Meanwhile, our latest consensus estimate is calling for revenue of $11.45 billion, up 21.84% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.14 per share and revenue of $43.59 billion. These totals would mark changes of +46.05% and +25.86%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for TSM. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TSM is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note TSM's current valuation metrics, including its Forward P/E ratio of 26.01. Its industry sports an average Forward P/E of 26.01, so we one might conclude that TSM is trading at a no noticeable deviation comparatively.
Meanwhile, TSM's PEG ratio is currently 1.32. 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. The Semiconductor - Circuit Foundry was holding an average PEG ratio of 1.32 at yesterday's closing price.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 7, putting it in the top 3% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TSMC (TSM) Gains But Lags Market: What You Should Know
TSMC (TSM - Free Report) closed the most recent trading day at $82.17, moving +0.76% from the previous trading session. This change lagged the S&P 500's 1.54% gain on the day. Meanwhile, the Dow gained 1.59%, and the Nasdaq, a tech-heavy index, added 0.98%.
Coming into today, shares of the chip company had gained 1.7% in the past month. In that same time, the Computer and Technology sector lost 0.76%, while the S&P 500 gained 8%.
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 $0.81 per share, which would represent year-over-year growth of 30.65%. Meanwhile, our latest consensus estimate is calling for revenue of $11.45 billion, up 21.84% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.14 per share and revenue of $43.59 billion. These totals would mark changes of +46.05% and +25.86%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for TSM. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TSM is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note TSM's current valuation metrics, including its Forward P/E ratio of 26.01. Its industry sports an average Forward P/E of 26.01, so we one might conclude that TSM is trading at a no noticeable deviation comparatively.
Meanwhile, TSM's PEG ratio is currently 1.32. 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. The Semiconductor - Circuit Foundry was holding an average PEG ratio of 1.32 at yesterday's closing price.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 7, putting it in the top 3% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.