The most recent trading session ended with TSMC (TSM) standing at $194.60, reflecting a +1.39% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.82%. On the other hand, the Dow registered a loss of 0.22%, and the technology-centric Nasdaq increased by 1.77%.
The chip company's stock has climbed by 0.09% in the past month, falling short of the Computer and Technology sector's gain of 1.43% and the S&P 500's gain of 0.8%.
The investment community will be closely monitoring the performance of TSMC in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.17, reflecting a 50.69% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $26.46 billion, indicating a 34.86% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $6.97 per share and a revenue of $89.51 billion, demonstrating changes of +34.56% and +29.17%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for TSMC. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.84% higher. As of now, TSMC holds a Zacks Rank of #1 (Strong Buy).
Looking at valuation, TSMC is presently trading at a Forward P/E ratio of 27.55. For comparison, its industry has an average Forward P/E of 27.55, which means TSMC is trading at no noticeable deviation to the group.
We can also see that TSM currently has a PEG ratio of 0.88. 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. The Semiconductor - Circuit Foundry was holding an average PEG ratio of 0.88 at yesterday's closing price.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 1, putting it in the top 1% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
