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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 $111.85 in the latest trading session, marking a -1.26% move from the prior day. This change lagged the S&P 500's daily loss of 0.08%.

Prior to today's trading, shares of the chip company had lost 1.77% over the past month. This has lagged the Computer and Technology sector's loss of 1.67% and the S&P 500's gain of 0.73% in that time.

TSM will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.89, up 14.1% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.96 billion, up 24.83% from the year-ago period.

TSM's full-year Zacks Consensus Estimates are calling for earnings of $4.07 per share and revenue of $56.56 billion. These results would represent year-over-year changes of +20.06% and +24.29%, respectively.

It is also important to note the recent changes to analyst estimates for TSM. These recent revisions tend to reflect the evolving nature of short-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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. TSM is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, TSM is holding a Forward P/E ratio of 27.83. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 27.83.

Also, we should mention that TSM has a PEG ratio of 1.75. 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. Semiconductor - Circuit Foundry stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 128, putting it in the top 50% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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