We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TSMC (TSM) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
TSMC (TSM - Free Report) closed the most recent trading day at $85.44, moving +1.36% from the previous trading session. This change outpaced the S&P 500's 0.02% gain on the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 0.22%.
Prior to today's trading, shares of the chip company had lost 11.35% over the past month. This has lagged the Computer and Technology sector's loss of 3.18% and the S&P 500's loss of 2.86% in that time.
Investors will be hoping for strength from TSMC as it approaches its next earnings release. In that report, analysts expect TSMC to post earnings of $1.15 per share. This would mark a year-over-year decline of 35.75%. Meanwhile, our latest consensus estimate is calling for revenue of $16.64 billion, down 17.75% from the prior-year quarter.
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 help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.21% lower. TSMC is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, TSMC is holding a Forward P/E ratio of 17.48. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 17.48.
Investors should also note that TSM has a PEG ratio of 2.93 right now. 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 2.93 at yesterday's closing price.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 245, which puts it in the bottom 3% 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.
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:
Image: Bigstock
TSMC (TSM) Outpaces Stock Market Gains: What You Should Know
TSMC (TSM - Free Report) closed the most recent trading day at $85.44, moving +1.36% from the previous trading session. This change outpaced the S&P 500's 0.02% gain on the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 0.22%.
Prior to today's trading, shares of the chip company had lost 11.35% over the past month. This has lagged the Computer and Technology sector's loss of 3.18% and the S&P 500's loss of 2.86% in that time.
Investors will be hoping for strength from TSMC as it approaches its next earnings release. In that report, analysts expect TSMC to post earnings of $1.15 per share. This would mark a year-over-year decline of 35.75%. Meanwhile, our latest consensus estimate is calling for revenue of $16.64 billion, down 17.75% from the prior-year quarter.
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 help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.21% lower. TSMC is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, TSMC is holding a Forward P/E ratio of 17.48. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 17.48.
Investors should also note that TSM has a PEG ratio of 2.93 right now. 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 2.93 at yesterday's closing price.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 245, which puts it in the bottom 3% 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.
To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.