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TSMC (TSM) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, TSMC (TSM - Free Report) closed at $79.66, marking a +1.08% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.34%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the chip company had lost 12.39% over the past month, outpacing the Computer and Technology sector's loss of 12.4% and lagging the S&P 500's loss of 7.95% 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 $1.68 per share, which would represent year-over-year growth of 55.56%. Our most recent consensus estimate is calling for quarterly revenue of $20.83 billion, up 40.03% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.24 per share and revenue of $77.77 billion. These totals would mark changes of +51.46% and +36.87%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for TSMC. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 has moved 1.01% lower. TSMC is currently a Zacks Rank #4 (Sell).
Digging into valuation, TSMC currently has a Forward P/E ratio of 12.64. Its industry sports an average Forward P/E of 12.64, so we one might conclude that TSMC is trading at a no noticeable deviation comparatively.
Also, we should mention that TSM has a PEG ratio of 0.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor - Circuit Foundry stocks are, on average, holding a PEG ratio of 0.52 based on yesterday's closing prices.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 240, which puts it in the bottom 5% 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.
To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.
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TSMC (TSM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, TSMC (TSM - Free Report) closed at $79.66, marking a +1.08% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.34%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the chip company had lost 12.39% over the past month, outpacing the Computer and Technology sector's loss of 12.4% and lagging the S&P 500's loss of 7.95% 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 $1.68 per share, which would represent year-over-year growth of 55.56%. Our most recent consensus estimate is calling for quarterly revenue of $20.83 billion, up 40.03% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.24 per share and revenue of $77.77 billion. These totals would mark changes of +51.46% and +36.87%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for TSMC. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 has moved 1.01% lower. TSMC is currently a Zacks Rank #4 (Sell).
Digging into valuation, TSMC currently has a Forward P/E ratio of 12.64. Its industry sports an average Forward P/E of 12.64, so we one might conclude that TSMC is trading at a no noticeable deviation comparatively.
Also, we should mention that TSM has a PEG ratio of 0.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor - Circuit Foundry stocks are, on average, holding a PEG ratio of 0.52 based on yesterday's closing prices.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 240, which puts it in the bottom 5% 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.
To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.