TSMC (TSM) closed at $204.30 in the latest trading session, marking a +1.8% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.19%. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Shares of the chip company have appreciated by 3.87% over the course of the past month, underperforming the Computer and Technology sector's gain of 7.09% and the S&P 500's gain of 6.66%.
The upcoming earnings release of TSMC will be of great interest to investors. The company's upcoming EPS is projected at $2.14, signifying a 48.61% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $25.96 billion, indicating a 32.27% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.95 per share and a revenue of $88.39 billion, signifying shifts of +34.17% and +27.55%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for TSMC. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.99% increase. As of now, TSMC holds a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, TSMC is currently exchanging hands at a Forward P/E ratio of 28.88. This signifies no noticeable deviation in comparison to the average Forward P/E of 28.88 for its industry.
Also, we should mention that TSM has a PEG ratio of 0.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - Circuit Foundry was holding an average PEG ratio of 0.93 at yesterday's closing price.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 1, finds itself in the top 1% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
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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.
