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TSMC (TSM) Dips More Than Broader Markets: What You Should Know

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TSMC (TSM - Free Report) closed at $83.12 in the latest trading session, marking a -1.68% move from the prior day. This change lagged the S&P 500's 1.4% loss on the day. Meanwhile, the Dow lost 1.34%, and the Nasdaq, a tech-heavy index, lost 1.57%.

Prior to today's trading, shares of the chip company had gained 7.13% over the past month. This has outpaced the Computer and Technology sector's loss of 0.17% and the S&P 500's loss of 0.46% in that time.

Investors will be hoping for strength from TSM as it approaches its next earnings release. In that report, analysts expect TSM to post earnings of $0.81 per share. This would mark year-over-year growth of 30.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.45 billion, up 21.84% from the year-ago period.

TSM's full-year Zacks Consensus Estimates are calling for earnings of $3.14 per share and revenue of $43.59 billion. These results would represent year-over-year changes of +46.05% and +25.86%, respectively.

Any recent changes to analyst estimates for TSM should also be noted by investors. 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.

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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. TSM is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that TSM has a Forward P/E ratio of 26.97 right now. For comparison, its industry has an average Forward P/E of 26.97, which means TSM is trading at a no noticeable deviation to the group.

Meanwhile, TSM's PEG ratio is currently 1.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor - Circuit Foundry stocks are, on average, holding a PEG ratio of 1.37 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 121, which puts it in the top 48% 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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