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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 $91.10 in the latest trading session, marking a -0.59% move from the prior day. This change lagged the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.2%.
Coming into today, shares of the chip company had lost 6.36% in the past month. In that same time, the Computer and Technology sector lost 6.18%, while the S&P 500 lost 3.25%.
TSMC will be looking to display strength as it nears its next earnings release. On that day, TSMC is projected to report earnings of $1.16 per share, which would represent a year-over-year decline of 35.2%. Our most recent consensus estimate is calling for quarterly revenue of $16.64 billion, down 17.75% from the year-ago period.
TSM's full-year Zacks Consensus Estimates are calling for earnings of $4.83 per share and revenue of $66.05 billion. These results would represent year-over-year changes of -26.48% and -12.96%, respectively.
Investors should also note any recent changes to analyst estimates for TSMC. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 7.53% lower. TSMC is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, TSMC is currently trading at a Forward P/E ratio of 18.96. For comparison, its industry has an average Forward P/E of 18.96, which means TSMC is trading at a no noticeable deviation to the group.
Meanwhile, TSM's PEG ratio is currently 3.18. 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. The Semiconductor - Circuit Foundry was holding an average PEG ratio of 3.18 at yesterday's closing price.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 245, putting it in the bottom 3% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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TSMC (TSM) Dips More Than Broader Markets: What You Should Know
TSMC (TSM - Free Report) closed at $91.10 in the latest trading session, marking a -0.59% move from the prior day. This change lagged the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.2%.
Coming into today, shares of the chip company had lost 6.36% in the past month. In that same time, the Computer and Technology sector lost 6.18%, while the S&P 500 lost 3.25%.
TSMC will be looking to display strength as it nears its next earnings release. On that day, TSMC is projected to report earnings of $1.16 per share, which would represent a year-over-year decline of 35.2%. Our most recent consensus estimate is calling for quarterly revenue of $16.64 billion, down 17.75% from the year-ago period.
TSM's full-year Zacks Consensus Estimates are calling for earnings of $4.83 per share and revenue of $66.05 billion. These results would represent year-over-year changes of -26.48% and -12.96%, respectively.
Investors should also note any recent changes to analyst estimates for TSMC. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 7.53% lower. TSMC is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, TSMC is currently trading at a Forward P/E ratio of 18.96. For comparison, its industry has an average Forward P/E of 18.96, which means TSMC is trading at a no noticeable deviation to the group.
Meanwhile, TSM's PEG ratio is currently 3.18. 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. The Semiconductor - Circuit Foundry was holding an average PEG ratio of 3.18 at yesterday's closing price.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 245, putting it in the bottom 3% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.