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TSMC (TSM) Stock Moves -0.93%: What You Should Know

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TSMC (TSM - Free Report) ended the recent trading session at $198.24, demonstrating a -0.93% swing from the preceding day's closing price. This change was narrower than the S&P 500's daily loss of 1.71%. Elsewhere, the Dow saw a downswing of 1.7%, while the tech-heavy Nasdaq depreciated by 2.2%.

The the stock of chip company has fallen by 10.92% in the past month, lagging the Computer and Technology sector's gain of 0.02% and the S&P 500's gain of 2.2%.

The investment community will be closely monitoring the performance of TSMC in its forthcoming earnings report. The company's upcoming EPS is projected at $2.03, signifying a 47.1% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $25.25 billion, indicating a 33.77% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.20 per share and a revenue of $113.63 billion, signifying shifts of +30.68% and +26.14%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for TSMC. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 moved 0.07% higher. TSMC presently features a Zacks Rank of #2 (Buy).

Digging into valuation, TSMC currently has a Forward P/E ratio of 21.76. This expresses no noticeable deviation compared to the average Forward P/E of 21.76 of its industry.

We can also see that TSM currently has a PEG ratio of 0.66. 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 0.66.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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