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

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The most recent trading session ended with TSMC (TSM - Free Report) standing at $160.87, reflecting a +0.24% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.16%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.3%.

The the stock of chip company has risen by 3.28% in the past month, leading the Computer and Technology sector's gain of 1.63% and undershooting the S&P 500's gain of 3.64%.

Investors will be eagerly watching for the performance of TSMC in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.74, showcasing a 34.88% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $22.72 billion, up 31.48% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.45 per share and revenue of $85.62 billion. These totals would mark changes of +24.52% and +23.55%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for TSMC. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.22% higher within the past month. Currently, TSMC is carrying a Zacks Rank of #2 (Buy).

In terms of valuation, TSMC is currently trading at a Forward P/E ratio of 24.88. This represents no noticeable deviation compared to its industry's average Forward P/E of 24.88.

We can also see that TSM currently has a PEG ratio of 0.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. TSM's industry had an average PEG ratio of 0.94 as of yesterday's close.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 3, this industry ranks in the top 2% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

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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