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

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TSMC (TSM - Free Report) closed the most recent trading day at $58.22, moving +0.5% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.34%, while the tech-heavy Nasdaq added 0.23%.

Coming into today, shares of the chip company had gained 9.34% in the past month. In that same time, the Computer and Technology sector gained 4.31%, while the S&P 500 gained 3.81%.

Wall Street will be looking for positivity from TSM as it approaches its next earnings report date.

Investors might also notice recent changes to analyst estimates for TSM. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, the Zacks Consensus EPS estimate remained stagnant. TSM is currently a Zacks Rank #3 (Hold).

Looking at its valuation, TSM is holding a Forward P/E ratio of 27.07. This represents a no noticeable deviation compared to its industry's average Forward P/E of 27.07.

We can also see that TSM currently has a PEG ratio of 2.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - Circuit Foundry industry currently had an average PEG ratio of 2.6 as of yesterday's close.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.


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