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TSMC (TSM) Stock Sinks As Market Gains: What You Should Know

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TSMC (TSM - Free Report) closed at $171.63 in the latest trading session, marking a -0.26% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.3%.

The the stock of chip company has risen by 11.49% in the past month, leading the Computer and Technology sector's gain of 6.18% and the S&P 500's gain of 3.38%.

The investment community will be closely monitoring the performance of TSMC in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.34, marking a 17.54% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $19.95 billion, up 27.28% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.13 per share and revenue of $84.52 billion, which would represent changes of +18.34% and +21.96%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for TSMC. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there's been a 0.26% rise in the Zacks Consensus EPS estimate. TSMC is holding a Zacks Rank of #2 (Buy) right now.

From a valuation perspective, TSMC is currently exchanging hands at a Forward P/E ratio of 28.09. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 28.09.

It's also important to note that TSM currently trades at a PEG ratio of 1.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - Circuit Foundry was holding an average PEG ratio of 1.18 at yesterday's closing price.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 3, positioning it in the top 2% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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