Back to top

Image: Bigstock

TSMC (TSM) Stock Dips While Market Gains: Key Facts

Read MoreHide Full Article

TSMC (TSM - Free Report) closed at $169.08 in the latest trading session, marking a -1.98% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.13% for the day. Elsewhere, the Dow saw an upswing of 0.55%, while the tech-heavy Nasdaq depreciated by 0.52%.

Prior to today's trading, shares of the chip company had lost 1.17% over the past month. This has lagged the Computer and Technology sector's gain of 1.56% and the S&P 500's gain of 3.67% in that time.

Investors will be eagerly watching for the performance of TSMC in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.74, marking a 34.88% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $22.72 billion, up 31.48% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.45 per share and a revenue of $85.62 billion, signifying shifts of +24.52% and +23.55%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for TSMC. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.22% higher within the past month. TSMC is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, TSMC is presently being traded at a Forward P/E ratio of 26.74. For comparison, its industry has an average Forward P/E of 26.74, which means TSMC is trading at no noticeable deviation to the group.

We can also see that TSM currently has a PEG ratio of 1.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Semiconductor - Circuit Foundry industry stood at 1.01 at the close of the market yesterday.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Taiwan Semiconductor Manufacturing Company Ltd. (TSM) - free report >>

Published in