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TSMC (TSM) Outpaces Stock Market Gains: What You Should Know

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TSMC (TSM - Free Report) closed the most recent trading day at $118.95, moving +0.37% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.15%.

Heading into today, shares of the chip company had gained 2.73% over the past month, outpacing the Computer and Technology sector's loss of 0.49% and the S&P 500's gain of 0.58% in that time.

TSM will be looking to display strength as it nears its next earnings release. In that report, analysts expect TSM to post earnings of $0.89 per share. This would mark year-over-year growth of 14.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

Any recent changes to analyst estimates for TSM should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. TSM currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, TSM is holding a Forward P/E ratio of 29.12. For comparison, its industry has an average Forward P/E of 29.12, which means TSM is trading at a no noticeable deviation to the group.

Investors should also note that TSM has a PEG ratio of 1.83 right now. 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 1.83 as of yesterday's close.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 132, which puts it in the bottom 49% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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