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TSMC (TSM) Stock Sinks As Market Gains: What You Should Know
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The most recent trading session ended with TSMC (TSM - Free Report) standing at $97.31, reflecting a -1.59% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.38%. Meanwhile, the Dow gained 1.47%, and the Nasdaq, a tech-heavy index, lost 0.23%.
Shares of the chip company witnessed a gain of 12.62% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 14.04% and outperforming the S&P 500's gain of 10.72%.
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. At the same time, our most recent consensus estimate is projecting a revenue of $18.99 billion, reflecting a 4.71% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.97 per share and a revenue of $66.45 billion, representing changes of -24.35% and -12.42%, 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. TSMC is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note TSMC's current valuation metrics, including its Forward P/E ratio of 19.9. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 19.9.
We can also see that TSM currently has a PEG ratio of 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. As the market closed yesterday, the Semiconductor - Circuit Foundry industry was having an average PEG ratio of 2.77.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 34% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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TSMC (TSM) Stock Sinks As Market Gains: What You Should Know
The most recent trading session ended with TSMC (TSM - Free Report) standing at $97.31, reflecting a -1.59% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.38%. Meanwhile, the Dow gained 1.47%, and the Nasdaq, a tech-heavy index, lost 0.23%.
Shares of the chip company witnessed a gain of 12.62% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 14.04% and outperforming the S&P 500's gain of 10.72%.
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. At the same time, our most recent consensus estimate is projecting a revenue of $18.99 billion, reflecting a 4.71% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.97 per share and a revenue of $66.45 billion, representing changes of -24.35% and -12.42%, 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. TSMC is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note TSMC's current valuation metrics, including its Forward P/E ratio of 19.9. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 19.9.
We can also see that TSM currently has a PEG ratio of 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. As the market closed yesterday, the Semiconductor - Circuit Foundry industry was having an average PEG ratio of 2.77.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 34% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.