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TSMC (TSM) Stock Sinks As Market Gains: What You Should Know
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TSMC (TSM - Free Report) closed at $105.64 in the latest trading session, marking a -0.7% move from the prior day. This move lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 0.5%.
Coming into today, shares of the chip company had gained 19.5% in the past month. In that same time, the Computer and Technology sector gained 4.61%, while the S&P 500 gained 5.42%.
Investors will be hoping for strength from TSM as it approaches its next earnings release. The company is expected to report EPS of $0.92, up 26.03% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.90 billion, up 24.1% from the prior-year quarter.
TSM's full-year Zacks Consensus Estimates are calling for earnings of $3.48 per share and revenue of $47.82 billion. These results would represent year-over-year changes of +61.86% and +38.07%, respectively.
It is also important to note the recent changes to analyst estimates for TSM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TSM is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, TSM is currently trading at a Forward P/E ratio of 30.62. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 30.62.
Also, we should mention that TSM has a PEG ratio of 1.43. 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 was holding an average PEG ratio of 1.43 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 8, putting it in the top 4% 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.
To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.
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TSMC (TSM) Stock Sinks As Market Gains: What You Should Know
TSMC (TSM - Free Report) closed at $105.64 in the latest trading session, marking a -0.7% move from the prior day. This move lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 0.5%.
Coming into today, shares of the chip company had gained 19.5% in the past month. In that same time, the Computer and Technology sector gained 4.61%, while the S&P 500 gained 5.42%.
Investors will be hoping for strength from TSM as it approaches its next earnings release. The company is expected to report EPS of $0.92, up 26.03% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.90 billion, up 24.1% from the prior-year quarter.
TSM's full-year Zacks Consensus Estimates are calling for earnings of $3.48 per share and revenue of $47.82 billion. These results would represent year-over-year changes of +61.86% and +38.07%, respectively.
It is also important to note the recent changes to analyst estimates for TSM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TSM is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, TSM is currently trading at a Forward P/E ratio of 30.62. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 30.62.
Also, we should mention that TSM has a PEG ratio of 1.43. 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 was holding an average PEG ratio of 1.43 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 8, putting it in the top 4% 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.
To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.