In the latest trading session, TSMC (TSM) closed at $232.99, marking a +2.49% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.52% for the day. At the same time, the Dow added 1.89%, and the tech-heavy Nasdaq gained 1.88%.
Shares of the chip company witnessed a loss of 5.91% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 0.05%, and the S&P 500's gain of 1.1%.
The investment community will be closely monitoring the performance of TSMC in its forthcoming earnings report. The company is forecasted to report an EPS of $2.56, showcasing a 31.96% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.31 billion, up 37.48% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.83 per share and revenue of $122.4 billion. These totals would mark changes of +39.63% and +35.88%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for TSMC. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.43% lower. As of now, TSMC holds a Zacks Rank of #3 (Hold).
Looking at its valuation, TSMC is holding a Forward P/E ratio of 23.14. Its industry sports an average Forward P/E of 23.14, so one might conclude that TSMC is trading at no noticeable deviation comparatively.
We can also see that TSM currently has a PEG ratio of 1.08. 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 average PEG ratio for the Semiconductor – Circuit Foundry industry stood at 1.08 at the close of the market yesterday.
The Semiconductor – Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 99, putting it in the top 41% of all 250+ industries.
