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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 $99.29 in the latest trading session, marking a -1.22% move from the prior day. This change lagged the S&P 500's 0.27% loss on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.18%.

Heading into today, shares of the chip company had lost 3.31% over the past month, lagging the Computer and Technology sector's gain of 7.53% and the S&P 500's gain of 7.36% in that time.

TSMC will be looking to display strength as it nears its next earnings release, which is expected to be April 14, 2022. In that report, analysts expect TSMC to post earnings of $1.27 per share. This would mark year-over-year growth of 32.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.97 billion, up 31.38% from the year-ago period.

TSM's full-year Zacks Consensus Estimates are calling for earnings of $5.42 per share and revenue of $73.05 billion. These results would represent year-over-year changes of +31.55% and +28.55%, respectively.

Investors should also note any recent changes to analyst estimates for TSMC. These revisions help to show the ever-changing nature of 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.

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 has moved 0.49% lower. TSMC is currently a Zacks Rank #3 (Hold).

In terms of valuation, TSMC is currently trading at a Forward P/E ratio of 18.55. Its industry sports an average Forward P/E of 18.55, so we one might conclude that TSMC is trading at a no noticeable deviation comparatively.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 107, putting it in the top 43% 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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