Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, TSMC (TSM - Free Report) closed at $85, marking a +0.57% move from the previous day. This change outpaced the S&P 500's 0.22% gain on the day. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.2%.

Heading into today, shares of the chip company had lost 6.31% over the past month, outpacing the Computer and Technology sector's loss of 8.36% and the S&P 500's loss of 8.32% in that time.

Investors will be hoping for strength from TSMC as it approaches its next earnings release. On that day, TSMC is projected to report earnings of $1.48 per share, which would represent year-over-year growth of 59.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.68 billion, up 40.56% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.93 per share and revenue of $76.53 billion, which would represent changes of +43.93% and +34.68%, respectively, from the prior year.

Investors might also notice 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.

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, 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. TSMC is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, TSMC currently has a Forward P/E ratio of 14.25. Its industry sports an average Forward P/E of 14.25, 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 industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Taiwan Semiconductor Manufacturing Company Ltd. (TSM) - free report >>

Published in