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TSMC (TSM) Gains As Market Dips: What You Should Know
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In the latest trading session, TSMC (TSM - Free Report) closed at $94.60, marking a +1.51% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.42%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq lost 0.08%.
Prior to today's trading, shares of the chip company had lost 3.28% over the past month. This has lagged the Computer and Technology sector's gain of 2.78% and the S&P 500's gain of 1.02% in that time.
Wall Street will be looking for positivity from TSMC as it approaches its next earnings report date. On that day, TSMC is projected to report earnings of $1.15 per share, which would represent a year-over-year decline of 35.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.64 billion, down 17.75% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.82 per share and revenue of $66.05 billion, which would represent changes of -26.64% and -12.96%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for TSMC. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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 1.43% lower. TSMC is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note TSMC's current valuation metrics, including its Forward P/E ratio of 19.32. For comparison, its industry has an average Forward P/E of 19.32, which means TSMC is trading at a no noticeable deviation to the group.
We can also see that TSM currently has a PEG ratio of 3.24. 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 3.24 as of yesterday's close.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 249, putting it in the bottom 2% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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TSMC (TSM) Gains As Market Dips: What You Should Know
In the latest trading session, TSMC (TSM - Free Report) closed at $94.60, marking a +1.51% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.42%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq lost 0.08%.
Prior to today's trading, shares of the chip company had lost 3.28% over the past month. This has lagged the Computer and Technology sector's gain of 2.78% and the S&P 500's gain of 1.02% in that time.
Wall Street will be looking for positivity from TSMC as it approaches its next earnings report date. On that day, TSMC is projected to report earnings of $1.15 per share, which would represent a year-over-year decline of 35.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.64 billion, down 17.75% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.82 per share and revenue of $66.05 billion, which would represent changes of -26.64% and -12.96%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for TSMC. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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 1.43% lower. TSMC is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note TSMC's current valuation metrics, including its Forward P/E ratio of 19.32. For comparison, its industry has an average Forward P/E of 19.32, which means TSMC is trading at a no noticeable deviation to the group.
We can also see that TSM currently has a PEG ratio of 3.24. 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 3.24 as of yesterday's close.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 249, putting it in the bottom 2% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.