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TSMC (TSM) Stock Declines While Market Improves: Some Information for Investors
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In the latest market close, TSMC (TSM - Free Report) reached $97.83, with a -0.83% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.06%. Meanwhile, the Dow experienced a rise of 0.33%, and the technology-dominated Nasdaq saw a decrease of 0.11%.
Heading into today, shares of the chip company had gained 12.81% over the past month, outpacing the Computer and Technology sector's gain of 9.83% and the S&P 500's gain of 8.22% in that time.
The investment community will be paying close attention to the earnings performance of TSMC in its upcoming release. The company is expected to report EPS of $1.34, down 26.37% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $18.99 billion, down 4.71% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.97 per share and revenue of $66.45 billion. These totals would mark changes of -24.35% and -12.42%, respectively, from last year.
Any recent changes to analyst estimates for TSMC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained stagnant. Currently, TSMC is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, TSMC is presently being traded at a Forward P/E ratio of 19.85. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 19.85.
Meanwhile, TSM's PEG ratio is currently 2.77. 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. TSM's industry had an average PEG ratio of 2.77 as of yesterday's close.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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) Stock Declines While Market Improves: Some Information for Investors
In the latest market close, TSMC (TSM - Free Report) reached $97.83, with a -0.83% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.06%. Meanwhile, the Dow experienced a rise of 0.33%, and the technology-dominated Nasdaq saw a decrease of 0.11%.
Heading into today, shares of the chip company had gained 12.81% over the past month, outpacing the Computer and Technology sector's gain of 9.83% and the S&P 500's gain of 8.22% in that time.
The investment community will be paying close attention to the earnings performance of TSMC in its upcoming release. The company is expected to report EPS of $1.34, down 26.37% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $18.99 billion, down 4.71% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.97 per share and revenue of $66.45 billion. These totals would mark changes of -24.35% and -12.42%, respectively, from last year.
Any recent changes to analyst estimates for TSMC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained stagnant. Currently, TSMC is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, TSMC is presently being traded at a Forward P/E ratio of 19.85. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 19.85.
Meanwhile, TSM's PEG ratio is currently 2.77. 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. TSM's industry had an average PEG ratio of 2.77 as of yesterday's close.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.